Question
Complete the following flexible budget and suggest one possible explanation for each of the variances. Master Budget Flexible budget Actual Results Sales volume (in units)
Complete the following flexible budget and suggest one possible explanation for each of the variances.
|
| Master Budget |
| Flexible budget |
| Actual Results |
|
|
| Sales volume (in units) | 20,000 |
|
|
| 18,500 |
|
|
| Sales Revenue | $1,050,000 |
|
|
| $972,000 |
|
|
| Variable costs | 500,000 |
|
|
| 477,000 |
|
|
| Contribution margin | 550,000 |
|
|
| 495,000 |
|
|
| Capacity-related (fixed) costs | 380,000 |
|
|
| 385,000 |
|
|
| Operating profit | $170,000 |
|
|
| $110,000 |
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Forensic Analytics Methods And Techniques For Forensic Accounting Investigations
Authors: Mark J. Nigrini
2nd Edition
1119585767, 9781119585763
