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Static Budget Analysis and Variance Report

The document presents a comparison between static budget and actual results for a company, highlighting variances in revenue, costs, and operating income. It details the performance across different levels of analysis, including flexible budgeting and variances related to direct materials, labor, and overhead. Overall, the actual operating income fell short of the budgeted amount by ₹93,100, indicating unfavorable performance.

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Karan Kumar
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3 views2 pages

Static Budget Analysis and Variance Report

The document presents a comparison between static budget and actual results for a company, highlighting variances in revenue, costs, and operating income. It details the performance across different levels of analysis, including flexible budgeting and variances related to direct materials, labor, and overhead. Overall, the actual operating income fell short of the budgeted amount by ₹93,100, indicating unfavorable performance.

Uploaded by

Karan Kumar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Static Budget Actual Result Level 1

Units Sold 12000.00 10000.00


Revenue ₹ 1,440,000.00 ₹ 1,250,000.00
Variable Costs Variance
Direct Materials ₹ 720,000.00 ₹ 621,600.00 ₹ 98,400.00
Direct Manufacturing Labour ₹ 192,000.00 ₹ 198,000.00 ₹ -6,000.00
Variable MOH ₹ 144,000.00 ₹ 130,500.00 ₹ 13,500.00
Total Variable cost ₹ 1,056,000.00 ₹ 950,100.00 ₹ 105,900.00
Contribution Margin ₹ 384,000.00 ₹ 299,900.00 ₹ 84,100.00
Fixed Cost ₹ 276,000.00 ₹ 285,000.00 Level0 ₹ -9,000.00
Operating Income ₹ 108,000.00 ₹ 14,900.00 Unfavourable: Actual< Budge ₹ 93,100.00 ₹ 93,100.00

Level 3
Std Actual Budgeted
DM required 12.00 Kg per unit Raw materials Consumed 125000 Kg 120000
Rate ₹ 5.00 Rate ₹ 4.97 ₹ 5.00
DL 4 Hrs DL consumed 42500 Hrs 40000
Rate 4 per hour Rate ₹ 4.66 per Hr 4
For 10000 Units 40000 Hours
Variable OH is absorbed based on the Manufacturing Labour Hours

Prepare the Level 0, 1, 2 and 3 analysis


Level 2
Flexible Budget
₹ 1,200,000.00
Variance
F ₹ 600,000.00 ₹ -21,600.00 UF
UF ₹ 160,000.00 ₹ -38,000.00 UF
F ₹ 120,000.00 ₹ -10,500.00 UF
F ₹ 880,000.00 ₹ -70,100.00 UF
F ₹ 320,000.00 ₹ 20,100.00 F
UF ₹ 276,000.00 ₹ -9,000.00 UF
₹ 44,000.00 ₹ 29,100.00 F

Diff
Kg 5000
₹ -0.03
Hrs 2500
per Hr ₹ 0.66

Volume Variance Price Variance DM Variance DL Variance


₹ 25,000.00 ₹ -3,400.00 ₹ 21,600.00 ₹ 28,000.00
UF F UF UF

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