Chapter_10_Handout

Chapter_10_Handout - Acc 200 Chapter 10 Handout Question:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Acc 200 Chapter 10 Handout Question : What is a static budget? Is it fair to compare a static budget to actual results? See the following comparison. (Static Budget) vs. (Actual Results) @ 2,000 units @ 2,800 units Sales rev. $200,000 $280,000 VC: DM 18,400 27,000 DL 60,000 85,800 VOH 12,000 23,400 FC 30,000 30,000 Net Inc $79,600 $113,800 Question: What is a flexible budget? Is it better to compare a flexible budget to actual results? PREPARE A FLEXIBLE BUDGET (Flexible Budget) @ 2,800 units Sales rev. VC: DM DL VOH FC Net Inc Question What is a “variance”? (Flexible Budget) (Actual Results) @ 2,800 units @ 2,800 units Variance Sales rev. $280,000 VC: DM 27,000 DL 85,800 VOH 23,400 FC 30,000 Net Inc $113,800 $
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(Flexible Budget) (Actual Results) @ 2,800 units @ 2,800 units Variance Sales revenue -------------- $280,000 $280,000 ----- Variable costs: Direct materials ------- 25,760 27,000 1,240 U Direct labor ------------ 84,000 85,800 1,800 U Variable OH----------- 16,800 23,400 6,600 U
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/22/2010 for the course ACC 200 taught by Professor Buckless during the Spring '08 term at N.C. State.

Page1 / 2

Chapter_10_Handout - Acc 200 Chapter 10 Handout Question:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online