Which of the following is false: A. The flexible budget is prepared using the actual volume...
Which of the following is false:
A.
The flexible budget is prepared using the actual volume achieved during the period.
B.
The difference between actual results and the master budget is called the master budget variance.
C.
The volume variance is due to causes other than volume.
D.
The master budget variance can be split into two components: a volume variance and a flexible budget variance.
Homework Answers
| Option C is the answer | |
|
Volume variance is caused only due to the volume differences. It does not allocate any other responsibility. Hence this statement is false. So option C is the answer |
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Which of the following is false:
A.
The flexible budget is prepared using the actual volume...
A static budget is one that Is based on the actual sales volume achieved during the...
A static budget is one that Is based on the actual sales volume achieved during the period. Is developed for a single level of expected output. Is one component of the operating budget. Is always used to compare with the actual results. Materiality can be measured in terms of Absolute dollars. Relative percentages. Both absolute dollars and relative percentages. Neither absolute dollars or relative percentages. The flexible budget variance is the difference between The static budget and the flexible budget....
The difference between actual revenues and expenses and the flexible budget is known as the: A....
The difference between actual revenues and expenses and the flexible budget is known as the: A. flexible budget variance B. static budget variance C. master budget variance D. volume variance
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue...
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ 193,700 $ 71,200 176,700 62,700 $ 122,500 $ 73,200 114,000 72,000 $ 49,300 $ 42,000 Operating income The budgeted sales price per unit is $ 3.10 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.10. Requirement 3. What is the budgeted fixed cost for the...
10. The difference between a Master Budget and a Flexible Budget is a. Master Budgets are...
10. The difference between a Master Budget and a Flexible Budget is a. Master Budgets are always more important. b. Flexible Budgets are restated to actual results. c. Master Budgets are created on actual results. d. Flexible Budgets are adapted to marketing changes. e. there is no difference if they are for the same period.
Req. 4,5, 6 A Data Table Actual vs. Budget Performance Report For the Month Ended August...
Req. 4,5, 6
A Data Table Actual vs. Budget Performance Report For the Month Ended August 31 Master Budget Master Budget Actual Variance 53,000 Sales volume (number of cases sold) Sales revenue 155,800 $ 137 800 68.900 Less: Variable expenses Contribution margin $ 76 400 $ 68.200 8 200 S 68.900 67 000 Less: Fixed expenses Operating income 1.900 Done 4. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management...
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000...
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000 S Sales Revenue $ 2,52,000 12,000 | F | $ 2,40,000 60,000 $3,00,000 Less: Variable Expenses 84,000 12,000F 96,000 24,000 F S 1,20,000 Contribution margin $1,68,000 24,000 $1,44,000 36,000 U $1,80,000 S Less: Fixed Expenses $ 1,50,000 5,000 $1,45,000 None S 1,45,000 Operating Income / (loss) $ 18,000 19,000 FS -1,000 36,000 U S 35,000 Look at the two outside columns - how was...
1. Prepare a flexible budget. 2. Compute the sales volume variance and the variable cost volume...
1. Prepare a flexible
budget.
2. Compute the sales volume
variance and the variable cost volume variances based on a
comparison between the master budget and the flexible budget
3.Compute flexible budget
variances by comparing the flexible budget with the actual
results.
4.Summarize the results of the
sales volume and variable cost volume variances computations based
on the comparison between the master budget and the flexible
budget.
5.Summarize the results of the
flexible budget variances computations based on the comparison...
The difference between operating income on a flexible budget and actual operating income is called the:...
The difference between operating income on a flexible budget and actual operating income is called the: standard variance. efficiency variance. sales price variance flexible budget variance.
James Manufacturing had the following information available for July: Actual Results Flexible Budget Variance Flexible Budget...
James Manufacturing had the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 13,000 ? 1,000 U ? Sales revenue ? $ 17,300 F ? ? ? Less: Variable manufacturing costs $ 90,000 $ 98,000 ? $ 123,000 Variable marketing and administrative ? $ 3,000 U ? $ 3,700 F $ 39,000 Contribution margin $ 58,000 ? ? $ 6,900 U ? What was James’s master budget contribution margin?
James Manufacturing had the following information available for July: Actual Results Flexible Budget Variance Flexible Budget...
James Manufacturing had the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 14,000 ? 4,000 U ? Sales revenue ? $ 21,250 F ? ? ? Less: Variable manufacturing costs $ 89,750 $ 97,000 ? $ 121,000 Variable marketing and administrative ? $ 9,250 U ? $ 4,750 F $ 38,000 Contribution margin $ 57,000 ? ? $ 6,800 U ? What was James’s master budget contribution margin? Multiple Choice...
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ 193,700 $ 71,200 176,700 62,700 $ 122,500 $ 73,200 114,000 72,000 $ 49,300 $ 42,000 Operating income The budgeted sales price per unit is $ 3.10 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.10. Requirement 3. What is the budgeted fixed cost for the...
Req. 4,5, 6
A Data Table Actual vs. Budget Performance Report For the Month Ended August 31 Master Budget Master Budget Actual Variance 53,000 Sales volume (number of cases sold) Sales revenue 155,800 $ 137 800 68.900 Less: Variable expenses Contribution margin $ 76 400 $ 68.200 8 200 S 68.900 67 000 Less: Fixed expenses Operating income 1.900 Done 4. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management...
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000 S Sales Revenue $ 2,52,000 12,000 | F | $ 2,40,000 60,000 $3,00,000 Less: Variable Expenses 84,000 12,000F 96,000 24,000 F S 1,20,000 Contribution margin $1,68,000 24,000 $1,44,000 36,000 U $1,80,000 S Less: Fixed Expenses $ 1,50,000 5,000 $1,45,000 None S 1,45,000 Operating Income / (loss) $ 18,000 19,000 FS -1,000 36,000 U S 35,000 Look at the two outside columns - how was...
1. Prepare a flexible
budget.
2. Compute the sales volume
variance and the variable cost volume variances based on a
comparison between the master budget and the flexible budget
3.Compute flexible budget
variances by comparing the flexible budget with the actual
results.
4.Summarize the results of the
sales volume and variable cost volume variances computations based
on the comparison between the master budget and the flexible
budget.
5.Summarize the results of the
flexible budget variances computations based on the comparison...
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