PROBLEM #2: THE CASE OF THE WEASELYPLANTMANAGER Santini Corporation's budget for the first quar Planned...
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PROBLEM #2: THE CASE OF THE WEASELYPLANTMANAGER Santini Corporation's budget for the first quar Planned Unit Sales ter of the year includes the following: 10,000 Sales $1,000,000 Fixed manufacturing costs: Salaries Utilities Factory Rent Maintenance/other Total fixed manufacturing costs $95,000 7,500 45,000 9,500 $157,000 Variable manufacturing costs: Direct materials $300,000 250,000 100,000 Direct labor Other Total variable manufacturing costs Actual results for the first quarter were as follows: Actual Unit Sales Sales $650,000 8,000 $800,000 Fixed manufacturing costs: Salaries Utilities Factory Rent Maintenance/other Total fixed manufacturing costs $95,000 7,500 45,000 9,500 $157,000 Variable manufacturing costs: Direct materials Direct labor Other Total variable manufacturing costs $250,000 232,500 95,000 $577,500 The plant manager believes he is due a bonus, as actual variable manufacturing costs were much lower than the budget. Required. 1. 2. Prepare a flexible budget report for sales at actual levels. Respond to the plant manager's request in a memo
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