Unfavorable flexible budget variances are those that are the result of lower than expected sales volume....
Unfavorable flexible budget variances are those that are the result of lower than expected sales volume.
True or False
Homework Answers
False
|
Unfavorable flexible budget variances are not only due to change in the budgeted sales volume. It depends on the flexible and actual element of every particular item |
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Unfavorable flexible budget variances are those that are the
result of lower than expected sales volume....
eted, total fixed costs should be higher than expected. If activity is lower than o included in a flexible budget b...
eted, total fixed costs should be higher than expected. If activity is lower than o included in a flexible budget because they do not change when the level of activity 10 Which of the following statements is true? A. If activity is higher than expected, total fixed cos expected, total fixed costs should be lower than expected B Fixed costs should not be included in a flexible bu changes. A revenue variance is favorable if the actual revenue is greater...
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...
please create an excel spreadsheet with calculations Problem 2: Flexible Budget and Variances Smith Company had...
please create an excel spreadsheet with calculations
Problem 2: Flexible Budget and Variances Smith Company had the following information available: Units Selling Price Variable Cost Per Unit Fixed Costs Budget 1,000 $60 $27 $24,000 Actual 1,100 $56 $28 $25,000 Required Prepare the static budget, actual income statement and flexible budget income statement. Calculate the sales volume variances and the flexible budget variances for each item on the income statement. Make sure your variances include favorable or unfavorable Write a brief...
Complete the following Flexible Budget Performance Report. Interpret your results. Remember on the variances to put...
Complete the following Flexible Budget Performance Report. Interpret your results. Remember on the variances to put Favorable (F) or Unfavorable (U) Flexible i e Flexible Volume Master Actual Budget B. Budget Variance Budget Variance Sales 57,500 57,500 53,000 Volume Sales Revenue $206,500 ($3.50 per unit) Less: Variable Expenses $83,200 ($1.40 per unit) Contribution $123,300 Margin Less: Fixed $65,500 $64,000 Expenses Operating $57,800 Income
Calculate the flexible budget amounts and the flexible budget variances. Note whether each variance is favorable...
Calculate the flexible budget amounts and the flexible budget variances. Note whether each variance is favorable or unfavorable. Also, fill in the number of units used to calculate the flexible budget amounts. There are 16 boxes to fill in. Units 10,000 9,000 ? Actual results Original (static) budget Flexible budget Flexible budget variances Favorable or unfavorable Direct materials 66,500 58,500 ? ? ? Direct labor 80,100 67,500 ? ? ? Variance overhead 9,700 9,000 ? ? ? Fixed overhead 224,500...
A flexible budget performance report compares the differences between: Help Save & Exit Actual performance and...
A flexible budget performance report compares the differences between: Help Save & Exit Actual performance and budgeted performance based on actual sales volume. Actual performance over several periods Budgeted performance over several periods Actual performance and budgeted performance based on budgeted sales volume Actual performance and standard costs at the budgeted sales volume We were unable to transcribe this image$29,000 unfavorable $29,000 favorable $22,500 unfavorable. $52.500 favorable. $52,500 unfavorable Identify the situation below that will result in a favorable variance...
answer all 37) The sales volume variance is the difference between the 37) Aj expected results...
answer all
37) The sales volume variance is the difference between the 37) Aj expected results in the flexible budget for the actual units sold and the static budget B) static budget and actual amounts due to differences in sales price C) flexible budget and static budget due to differences in fixed costs D) actual results and the expected results in the flexible budget for the actual units sold 38) 39) The static budget, at the beginning of the month,...
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...
Flexible Budgets, Direct Cost Variances, and Management Control Flexible Budget Sweeney Enterprises manufactures tires for the...
Flexible Budgets, Direct Cost Variances, and Management Control Flexible Budget Sweeney Enterprises manufactures tires for the Formula i motor racing circuit. The company's budgeted and 4 actual amounts are as follows: Budgeted for August 2017 Units to manufacture and sell Variable cost per tire Total fixed costs Budgeted selling price per tire 3,600 $71 $55,000 $114 varebone Actual Results for August 2017 Units manufactured and sold 3,500 Selling price per tire $116 Total variable costs $280,000 Total fixed costs. $51,000...
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...
eted, total fixed costs should be higher than expected. If activity is lower than o included in a flexible budget because they do not change when the level of activity 10 Which of the following statements is true? A. If activity is higher than expected, total fixed cos expected, total fixed costs should be lower than expected B Fixed costs should not be included in a flexible bu changes. A revenue variance is favorable if the actual revenue is greater...
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...
please create an excel spreadsheet with calculations
Problem 2: Flexible Budget and Variances Smith Company had the following information available: Units Selling Price Variable Cost Per Unit Fixed Costs Budget 1,000 $60 $27 $24,000 Actual 1,100 $56 $28 $25,000 Required Prepare the static budget, actual income statement and flexible budget income statement. Calculate the sales volume variances and the flexible budget variances for each item on the income statement. Make sure your variances include favorable or unfavorable Write a brief...
Complete the following Flexible Budget Performance Report. Interpret your results. Remember on the variances to put Favorable (F) or Unfavorable (U) Flexible i e Flexible Volume Master Actual Budget B. Budget Variance Budget Variance Sales 57,500 57,500 53,000 Volume Sales Revenue $206,500 ($3.50 per unit) Less: Variable Expenses $83,200 ($1.40 per unit) Contribution $123,300 Margin Less: Fixed $65,500 $64,000 Expenses Operating $57,800 Income
A flexible budget performance report compares the differences between: Help Save & Exit Actual performance and budgeted performance based on actual sales volume. Actual performance over several periods Budgeted performance over several periods Actual performance and budgeted performance based on budgeted sales volume Actual performance and standard costs at the budgeted sales volume We were unable to transcribe this image$29,000 unfavorable $29,000 favorable $22,500 unfavorable. $52.500 favorable. $52,500 unfavorable Identify the situation below that will result in a favorable variance...
answer all
37) The sales volume variance is the difference between the 37) Aj expected results in the flexible budget for the actual units sold and the static budget B) static budget and actual amounts due to differences in sales price C) flexible budget and static budget due to differences in fixed costs D) actual results and the expected results in the flexible budget for the actual units sold 38) 39) The static budget, at the beginning of the month,...
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...
Flexible Budgets, Direct Cost Variances, and Management Control Flexible Budget Sweeney Enterprises manufactures tires for the Formula i motor racing circuit. The company's budgeted and 4 actual amounts are as follows: Budgeted for August 2017 Units to manufacture and sell Variable cost per tire Total fixed costs Budgeted selling price per tire 3,600 $71 $55,000 $114 varebone Actual Results for August 2017 Units manufactured and sold 3,500 Selling price per tire $116 Total variable costs $280,000 Total fixed costs. $51,000...
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...
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