Excel solutions - 11_36_soln

Excel solutions - 11_36_soln - Problem 11-42 Student Name...

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Problem 11-42 Student Name: Instructor Class: McGraw-Hill/Irwin 1. Citing the benefits of flexible budgeting, explain why Susan Porter would propose using flexible budgeting in this situation. Susan Porter recommended that SoftGro use flexible budgeting in this situation because a flexible budget would allow Mark Fletcher to compare SoftGro's actual selling expenses (based on current month's actual activity) with budgeted selling expenses. In general, flexible budgets: - Provide management with the tools to evaluate the effects of varying levels of activity on costs, revenues, and profits. - Enable management to improve planning and decision making. - Improve the analysis of actual results. 2. SoftGro Corporation Revised Monthly Selling Expense Report for November Flexible Budget Actual Variance Advertising $1,650,000 $1,660,000 $10,000 Unfavorable Staff salaries 125,000 125,000 - 115,200 115,400 200 Unfavorable 496,000 496,000 - 158,400 162,600 4,200 Unfavorable 366,000 358,400 (7,600) Unfavorable
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