Question

Match each form to the correct definition Terms a. Flexible budget b. Flexible budget variance c. Sales volume variance d Static budget e. Variance - Definitions 1. A summarized budget for several levels of volume that separates variable costs from foxed costs 2. A budget prepared for only one level of sales 3. The difference between an actual amount and the budgeted amount 4. The difference arising because the company actually earned more or less revenue, or incurred more or less cost than expected for the actual level of output 5. The difference arising only because the number of units actually sold differs from the static budget units

Answer 1

Answers:

3	e
4	b
5	c
1	a
2	d

Gianni, Inc.
Flexible Budget Performance Report (partial)
For the Month Ended April 30,2018
	Actual Results	Flexible Budget Variance		Flexible Budget
Units	9,000	0		9,000
Sales Revenue	$135,000	$18,000	F	$117,000
Variable Costs	$51,500	$1,300	U	$50,200
Contribution margin	$83,500	$16,700	F	$66,800
Fixed costs	$16,000	$1,500	U	$14,500
Operating income	$67,500	$15,200	F	$52,300

If Actual Sales revenue, Contribution margin and Operating income is more than the budgeted then it is'Favorable(F)'. Otherwise 'Unfavorable(U)'.

If Actual Variable cost and fixed cost are more than the budgeted then it is 'Unfavorable(U)'. Otherwise 'Favorable(F)'.