cornerstones chp 9

cornerstones chp 9 - Chapter 9 Flexible Budgets(pages...

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May 26, 2011 Accounting 2102 1 Chapter 9 Flexible Budgets (pages 380-384)
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Sugar High, Inc. planning . . .  Sugar High, Inc.,  a manufacturer of candy, prepared the following  budget for the second quarter of this year:  May 26, 2011 Accounting 2102 2 Sales Revenue (SP = $10.00 per unit) $1,000,000 Cost of Goods Sold Direct Material ($2.00 per unit) Direct Labor ($0.80 per unit) Manufacturing Overhead Variable ($1.00 per unit) Fixed (30,000) Gross Profit Selling, General, and Administrative Variable ($0.50 per unit) Look at slide #12 from Chapter 7 . . . why are fixed SG&A $70,000 and not $60,000? How many units did we budget to sell?
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Performance Reporting budget versus actual (BVA) static budget . . . compares actual costs with budgeted costs for the budgeted level of activity flexible budget . . . compares actual costs with the budgeted costs for the actual level of activity May 26, 2011 Accounting 2102 3
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Sugar High, Inc. performance evaluation . . . using a static budget
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This note was uploaded on 05/26/2011 for the course ACCT 2102 taught by Professor Farmer during the Spring '08 term at UGA.

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cornerstones chp 9 - Chapter 9 Flexible Budgets(pages...

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