Flexible Budget using the information on Exhibit

1. You will need to get a budgeted rate per unit for the variable expenses like we did in class to make that happen.
b.) Calculate the breakeven in units based on the per unit costs you found in part a.
c.) Calculate the Level 2 variances and indicate if the variance is favorable or unfavorable. (This should be done on each individual account and for the total.)
d.) Calculate the level 3 variances (price and efficiency) for direct material, direct labor, and shipping costs, and indicate if the variance is favorable or unfavorable. (Assume that the direct material per completed unit is 1 unit of direct material for each unit completed.)
e.) Calculate the level 3 variances for overhead, both variable and fixed, and indicate if the variance is favorable or unfavorable. Assume that the company allocates their overhead based on direct labor hours. You may lump all individual line items of variable overhead together. You may do the same for fixed overhead.