ACIS 2116 Chapter 11 PowerPoints Spring 2009 - Flexible Budget

ACIS 2116 Chapter 11 PowerPoints Spring 2009 - Flexible Budget

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ACIS 2116 – Part of Chapter 11 Flexible Budgeting and Variance Analysis Note: The information for the Hokie Consultants example used in these slides is included in the main PowerPoint slides for Chapter 11.
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Comparison of Budgeted and Actual Results for Hokie Consultants Static Budget Volume Variances Flexible Budget Flexible Budget Variances Actual Results (50 jobs) (54 jobs) (54 jobs) Revenue 20,000 $ 1,600 $ 21,600 $ $540 Unfavorable 21,060 $ Variable Expenses: Supplies 1,750 $ 140 $ 1,890 $ 270 Favorable 1,620 $ Labor 5,000 $ 400 $ 5,400 $ 324 Unfavorable 5,724 $ Computer Time 2,500 $ 200 $ 2,700 $ 432 Favorable 2,268 $ Total Variable Expenses 9,250 $ 740 $ 9,990 $ 378 Favorable 9,612 $ Contribution Margin 10,750 $ 860 $ 11,610 $ 162 Unfavorable 11,448 $ Fixed Expenses 5,000 $ 5,000 $ - 5,000 $ Net Income 5,750 $ 860 $ 6,610 $ 162 Unfavorable 6,448 $ The Static Budget is based on planned (budgeted) number of jobs. The Flexible Budget is based on actual number of jobs. Costs included in both the Static and Flexible budgets are based on standard costs. Standard costs per job for supplies, labor and computer time, for example, are $35, $100 and $50, respectively.
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Comparison of Budgeted and Actual Results
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