Homework Answers
Answer: volume variance
The master budget is prepared for a fixed volume while the flexible budget is prepared based on the actual volume. The comparison between the master budget and the flexible budget results in a variance due to the different volumes considered while preparing the master budget and the flexible budget and is hence known as the volume variance.
The spending variance on the other hand results from a comparison of the actual results vis-à-vis the flexible budget.
The quantity variance and price variance are components of the total variance.
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Comparing the master budget with the flexible budget creates a: Multiple Choice O spending variance. volume...
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James Manufacturing has the following information available for July Flexible Budget Variance Flexible Budget Sales Activity...
James Manufacturing has the following information available for July Flexible Budget Variance Flexible Budget Sales Activity Variance 3,0000 Master Budget $16,800F Actual Results Units 12,000 Sales revenue Less: Variable manufacturing costs $88,500 Variable marketing and administrative Contribution margin $52,000 $92,000 $ 5,5000 ? $6,200F $6,3000 $111,000 $ 33,000 ? What was James's flexible budget sales revenue for July? Multiple Choice $156.000 O O $195.000 O $172.800 o
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Clark Company's master budget includes $288,000 for equipment depreciation. The master budget was prepared for an...
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What was James's flexible budget contribution margin for July? Multiple Choice Ο $59100 Ο Ο $72.600....
What was James's flexible budget contribution margin for July? Multiple Choice Ο $59100 Ο Ο $72.600. Ο $65.000 Ο 551.500 James Manufacturing had the following information available for July Actual Results 14,500 Flexible Budget Variance Flexible Budget Sales Activity Variance 1, eeeu ? Master Budget $13,500F Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $91,75€ $100,000 ? $137, eee $ 8, 2500 $9,000F $7,600U $ 46,000 ? $65,000 What was James's flexible budget contribution margin...
1. Which of the following best describes variance analysis? Comparing ideal costs to master budget costs...
1. Which of the following best describes variance analysis? Comparing ideal costs to master budget costs Comparing flexible budget costs to master budget costs Comparing master budget costs to actual costs Comparing flexible budget costs to actual costs 2. The Rubber Division of Morgain Company manufactures rubber moldings and sells them externally for $29. Its variable cost is $12 per unit, and its fixed cost per unit is $8. Morgain's president wants the Rubber Division to transfer 5,000 units to...
Clark Company's master budget includes $300,000 for equipment depreciation. The master budget was prepared for an...
Clark Company's master budget includes $300,000 for equipment depreciation. The master budget was prepared for an annual volume of 75,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September, Clark performed 5,500 chargeable hours and recorded $21,500 of depreciation. Required: 1. Determine the flexible-budget amount for equipment depreciation in September. 2. Compute the spending variance for the depreciation on equipment. Was the variance favorable (F) or unfavorable (U)? (Leave no cell blank; if there is...
James Manufacturing has the following Information available for July Flexible Budget Variance Flexible Budget Sales Activity...
James Manufacturing has the following Information available for July Flexible Budget Variance Flexible Budget Sales Activity Variance 2,0000 Actual Results 16,000 ? Master Budget $12,300F ? Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $92,000 $ 101,000 ? $139,000 ? $66,000 $ 9,0000 ? $9,700F $7,700U $ 47,000 ? ? What was James's actual sales revenue for July? Multiple Choice 0 O $216.000 0 $204.300 0 $261.700 0 $192.000
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James Manufacturing had the following Information available for July: Flexible Budget Variance Flexible Budget Sales Activity Variance 4,000U Actual Results 14,000 ? Master Budget $11,000F Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $90,750 $96,000 ? $129,000 $5,250U ? ? $61,000 $6,000F $7,2000 $ 42,000 ? What was James's flexible budget contribution margin for July? Multiple Choice O $50,000 O $68,200 O $61.000 O $57,200
James Manufacturing has the following information available for July Flexible Budget Variance Flexible Budget Sales Activity Variance 3,0000 Master Budget $16,800F Actual Results Units 12,000 Sales revenue Less: Variable manufacturing costs $88,500 Variable marketing and administrative Contribution margin $52,000 $92,000 $ 5,5000 ? $6,200F $6,3000 $111,000 $ 33,000 ? What was James's flexible budget sales revenue for July? Multiple Choice $156.000 O O $195.000 O $172.800 o
Clark Company's master budget includes $288,000 for equipment depreciation. The master budget was prepared for an annual volume of 96,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September, Clark performed 8,000 chargeable hours and recorded $24,900 of depreciation. Required: 1. Determine the flexible-budget amount for equipment depreciation in September. 2. Compute the spending variance for the depreciation on equipment. Was the variance favorable (F) or unfavorable (U)? (Leave no cell blank; if there is...
What was James's flexible budget contribution margin for July? Multiple Choice Ο $59100 Ο Ο $72.600. Ο $65.000 Ο 551.500 James Manufacturing had the following information available for July Actual Results 14,500 Flexible Budget Variance Flexible Budget Sales Activity Variance 1, eeeu ? Master Budget $13,500F Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $91,75€ $100,000 ? $137, eee $ 8, 2500 $9,000F $7,600U $ 46,000 ? $65,000 What was James's flexible budget contribution margin...
Clark Company's master budget includes $300,000 for equipment depreciation. The master budget was prepared for an annual volume of 75,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September, Clark performed 5,500 chargeable hours and recorded $21,500 of depreciation. Required: 1. Determine the flexible-budget amount for equipment depreciation in September. 2. Compute the spending variance for the depreciation on equipment. Was the variance favorable (F) or unfavorable (U)? (Leave no cell blank; if there is...
James Manufacturing has the following Information available for July Flexible Budget Variance Flexible Budget Sales Activity Variance 2,0000 Actual Results 16,000 ? Master Budget $12,300F ? Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $92,000 $ 101,000 ? $139,000 ? $66,000 $ 9,0000 ? $9,700F $7,700U $ 47,000 ? ? What was James's actual sales revenue for July? Multiple Choice 0 O $216.000 0 $204.300 0 $261.700 0 $192.000
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