Question

8. You begin asking your friend for the information you need to construct a flexible budget. Your friend gives you the following information: The budgeted variable cost per pound of laundry is $0.072 The actual variable cost per pound of laundry is $0.0799 The budgeted volume is 125,000 pounds The actual volume is 156,600 pounds. Budgeted fixed cost is $4,000 Actual fixed cost is $4,000 Use these figures to find the original (static) budgeted expense 9. Use the figures from question 8 to find the actual expenses. 10. Use the figures from question 8 to find the flexible budget expense. (Find total expenses, not expenses per pound of laundry)

Answer 1

8.

Budgeted Costs
Budgeted Variable Costs	$           9,000	=125000*0.072
Budgeted Fixed Costs	$           4,000
Total Budgeted Costs	$         13,000

9.

Actual Costs
Actual Variable Costs	$   12,512.34	=156600*0.0799
Actual Fixed Costs	$     4,000.00
Total Actual Costs	$   16,512.34

10.

Budgeted Costs
Budgeted Variable Costs	$         11,275	=156600*0.072
Budgetd Fixed Costs	$           4,000
Total Budgeted Costs	$         15,275