Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Almond Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $90,000 + $20 * X,

Almond Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $90,000 + $20 * X, where X represents the expected number of units of its only product to be manufactured and sold. The budgeted average selling price per unit was $40 for budgeted sales volume 6,000 units. Reported actual results for February were as follows:

Sales

6,200 units

Sales revenue

$ 260,000

Less variable costs

($ 125,000)

Contribution margin

$ 135,000

Less fixed costs

($ 98,000)

Operating Income

$ 37,000

What was the flexible budget variance for February?

NEED ASAP

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Gleim CIA Review Part 3 Internal Audit Knowledge Elements

Authors: Irvin N. Gleim

2018 Edition

1618541153, 978-1618541154

More Books

Students also viewed these Accounting questions

Question

Is male dominance universal? Is so, why?

Answered: 1 week ago