A favorable flexible budget variance for variable

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Elementary and Intermediate Algebra: Algebra Within Reach
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Chapter 3 / Exercise 81
Elementary and Intermediate Algebra: Algebra Within Reach
Larson
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31) A favorable flexible-budget variance for variable costs may be the result of using more input quantities than were budgeted.
Diff: 1Objective: 2AACSB: Analytical thinking
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Elementary and Intermediate Algebra: Algebra Within Reach
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 81
Elementary and Intermediate Algebra: Algebra Within Reach
Larson
Expert Verified
32) The president of the company, Peter Francis, has come to you for help. Use the following data to prepare a flexible budget for possible sales/production levels of 10,000, 15,000, and 20,000 units. Show the contribution margin at each activity level. Sales price$30 per unitVariable costs:Manufacturing$10 per unitAdministrative$ 3 per unitSelling$ 1 per unitFixed costs:Manufacturing$70,000Administrative$30,000
Diff: 3Objective: 2AACSB: Application of knowledge
33) Nicholas Company manufacturers TVs. Some of the company's data was misplaced. Usethe following information to replace the lost data: AnalysisActualResultsFlexibleVariancesFlexibleBudgetSales-VolumeVariancesStaticBudgetUnits Sold112,500112,500103,125Revenues$42,080$1,000 F(A)$1,400 U(B)Variable Costs(C)$200 U$15,860$2,340 F$18,200Fixed Costs$8,280$860 F$9,140$9,140Operating Income$17,740(D)$16,080(E)$15,140Required:a.What are the respective flexible-budget revenues (A)?b.What are the static-budget revenues (B)?c.What are the actual variable costs (C)?d.What is the total flexible-budget variance (D)?e.What is the total sales-volume variance (E)?f.What is the total static-budget variance? Answer:
Diff: 3Objective: 2AACSB: Application of knowledge
7.3 Objective 7.31) The actual information pertains to the month of June. As part of the budgeting process, Colonial Fencing Company developed the following static budget for September. Colonial isin the process of preparing the flexible budget and understanding the results.ActualFlexibleStaticResultsBudgetBudgetSales volume (in units)19,00020,500Sales revenues$510,000$$615,000Variable costs256,000$ ________300,000Contribution margin$254,000$315,000Fixed costs235,000$ ________228,000Operating profit$19,000$ $87,000The flexible budget for sales revenues will be?
DDiff: 3Objective: 3AACSB: Application of knowledge

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