Let's use excel for creating software for a company to use frequently for break-even analysis, budgeting and variance analysis. The software (excel workbook) should be attractive and user friendly: The name of the company is:
Natural Fragrance, Inc., began operations on January 1, 2012. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $80 per case. There is a selling commission of $16 per case. The January direct materials, direct labor, and factory overhead costs are as follows:
Make a workbook in excel and apply the worksheets within it.
- Spreadsheet One: Break-Even Analysis
- Determine a fixed and variable portion of a utility cost using the high-low method.
- Determine a contribution margin
- Determine a break-even number
Spreadsheet Two: Budgets
- Include a production budget
- Include a direct materials purchase budget
- Include a direct labor budget
- Include a factory overhead budget
- Include a budgeted income statement
Spreadsheet Three: Variance Analysis
- Determine a direct material price and quantity variances
- Determine a direct labor rate and time variances
- Determine a factory overhead controllable variance
- Determine a factory overhead volume variance