Bermans camera shop has prepared the following

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Chapter 22 / Exercise 22-2A
Accounting Using Excel for Success
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6. Berman's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.
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Accounting Using Excel for Success
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Chapter 22 / Exercise 22-2A
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Flexible Variances Budget Price Efficiency Material A $40,000 $1,000 F $3,000 U Material B 60,000 500 U 1,500 F Direct manufacturing labor80,000 500 U 2,500 F The most likely explanation of the above variances for Material A is that ________. A
7. The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results. Actual Flexible Static Results Budget Budget Sales volume (in units) 11,000 10,000 Sales revenues $238,000 $ $230,000 Variable costs 150,000 $ ________ 180,000 Contribution margin 88,000 $ 50,000 Fixed costs 36,000 $ ________ 35,000 Operating profit $ 52,000 $ $ 15,000 The primary reason for high actual operating profits was ________. A
8. Lunicious Corporation currently produces baseball caps in an automated process. Expected production per month is 15,000 units, direct material costs are $3.50 per unit, and manufacturing overhead costs are $40,000 per month. Manufacturing overhead is entirely fixed costs. What is the flexible budget for 12,000 and 15,000 units, respectively? C

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