Flexible_budget_example(1)

Flexible_budget_example(1) - we favorable or unfavorable to...

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Flexible Budget Example Master Budget Variable Costs Dairy 9,000.00 $.25 x 180 x #students Fruit 7,200.00 $.20 x 180 x #students Fixed Costs Salary and Benefits 22,500.00 Total Costs 38,700.00 Ok now the real costs come in for the year and it looks like this… Master Budget Actual Variable Costs Dairy 9,000.00 8,500.00 Fruit 7,200.00 7,100.00 Fixed Costs Salary and Benefits 22,500.00 22,495.00 Total Costs 38,700.00 38,095.00 How do I judge whether we have down a good job or not? Ok let's collect some additional information…lets assume that we assumed 180 days of service to 200 students. In reality we served only 175. We delivered the service to less than planned for service and saved $605, are
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Unformatted text preview: we favorable or unfavorable to the original plan? Master Flexible Budget Budget Actual Variable Costs Dairy 9,000.00 7,875.00 8,500.00 Fruit 7,200.00 6,300.00 7,100.00 Fixed Costs Salary and Benefits 22,500.00 22,500.00 22,495.00 Total Costs 38,700.00 36,675.00 38,095.00 Then only way to know is with a flexible budget Please look at the formulas in the cells, but when we 'flex' the budget for the number of students actually served we are unfavorable to budget, we have spent more than planned for the service of our students....
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This note was uploaded on 04/03/2011 for the course ACCT 434 taught by Professor Hayes during the Spring '11 term at DeVry Kansas City.

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Flexible_budget_example(1) - we favorable or unfavorable to...

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