In a flexible budget performance report,
a. the budget is based on the activity that was expected at the beginning of the period.
b. the budget is adjusted to the actual activity for the period.
c. budgeted fixed costs are different than they would be in a static budget.
d. only the unfavorable variances are recorded for managers to explore.
In a flexible budget performance report,
a. the budget is based on the activity that was expected at the beginning of the period.
b. the budget is adjusted to the actual activity for the period.
c. budgeted fixed costs are different than they would be in a static budget.
d. only the unfavorable variances are recorded for managers to explore.
Related questions
The following budgeted and actual volume and cost data are forJuly of this year.
Prepare a flexible budget analysis for July of this year byfilling in the Flexible budget amounts based on the actual salesvolume and calculating the variances. DONâT FORGET TOINDICATE WHETHER THEY ARE FAVORABLE OR UNFAVORABLE!
Budget (per unit) | Budget | Actual | FLEXIBLE BUDGET | Variance | ||
Volume | 40,000 | 40,000 | 36,000 | 36,000 | ||
Sales Revenue | $70 per unit | $2,800,000 | $2,520,000 | |||
Budgeted manufacturing costs: | ||||||
Variable costs: | ||||||
Direct materials | $35.00 | $1,400,000 | $1,350,000 | |||
Direct labor | 15.00 | 600,000 | 580,000 | |||
Overhead | 5.00 | 200,000 | 180,000 | |||
Total fixed overhead costs | $450,000 | 450,000 | 406,000 | |||
Net Income before taxes | $150,000 | 4,000 | ||||
