Wanda’s Waffles is preparing their 2016 budget

MBA 6100 Case Study #2Wanda’s Waffles is preparing their 2016 budget. They want to prepare a flexible budget for use each month.They estimate sales/production will be between 300,000 and 400,000 boxes of frozen waffles per month.Question 1: Prepare a flexible budget in Excel for Wanda’s Waffles.a) Show the flexible budget based on 300,000 units (boxes) produced.b) Show the flexible budget based on 400,000 units (boxes) produced.c) Show the flexible budget cost formulas for Wanda’s Waffles.d) Explain the benefit of flexible budgets and when they should be used.Question 2: The months of January and February are complete, and Wanda’s Waffles wants to compare theirbudget to their actual results. Actual results are shown in the table above.a) Show the flexible budget based on actual units produced for each month.b) Compare actual results to budgeted results (Favorable or Unfavorable) for each month.c) Provide possible explanations for the favorable and unfavorable variances. Was net operating incomebetter or worse than budget? Provide recommendations for Wanda’s Waffles.Calculations and backup should be completed and submitted in Excel. Use proper Income Statement formatting.Analysis can either be typed into cells in Excel (formatted to be easily legible) or typed into a text box in Excel.Students are expected to work independently.

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