Question
Course Title: Managerial Accounting and Legal Aspects of Business Competency Assessment Title: Flexible Budget Assignment Directions Review the scenario and complete the activity below. This
Course Title: Managerial Accounting and Legal Aspects of Business Competency Assessment Title: Flexible Budget Assignment Directions Review the scenario and complete the activity below. This scenario can also be found in the "Problems - Series A" section 8-19A of Ch. 8, "Performance Evaluation," of Fundamental Managerial Accounting Concepts. Use Excel@ showing all work and formulas - to complete the following: Prepare a flexible budget. Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the flexible budget. Compute flexible budget variances by comparing the flexible budget with the actual results. Mr. Snow was extremely upset with the budget deficit. He immediately called you, the tr
Side By Side Comparison | ||||
Details | Master Budget | Flexible Budget | Actual Costs | Flexible Variance |
Allocated Funds | $25,290.00 | $25,290.00 | $25,290.00 | $0.00 |
Expenses: | ||||
Variable Expenses | ||||
Meals | $20,300.00 | $23,490.00 | $25,110.00 | -$1,620.00 |
Postage | $1,470.00 | $1,960.00 | $1,960.00 | $0.00 |
Fixed Expense | ||||
Facility | $1,000.00 | $1,500.00 | $1,500.00 | $0.00 |
Printing | $950.00 | $950.00 | $950.00 | $0.00 |
Decorations | $840.00 | $840.00 | $840.00 | $0.00 |
Speakers's Gift | $130.00 | $130.00 | $130.00 | $0.00 |
Publicity | $600.00 | $600.00 | $600.00 | $0.00 |
Total Expense | $25,290.00 | $29,470.00 | $31,090.00 | -$1,620.00 |
Surplus (Deficit) | $0.00 | -$4,180.00 | -$5,800.00 | $1,620.00 |
Details | Budget | Flexible Budget | Variance | |
Allocated Funds | 25290 | 25290 | =B2-C2 | |
Expenses: | ||||
Variable Expenses | ||||
Meals | 20300 | =1620*14.5 | =B5-C5 | |
Postage | 1470 | =4000*.49 | =B6-C6 | |
Fixed Expense | ||||
Facility | 1000 | 1500 | =B8-C8 | |
Printing | 950 | 950 | =B9-C9 | |
Decorations | 840 | 840 | =B10-C10 | |
Speakers's Gift | 130 | 130 | =B11-C11 | |
Publicity | 600 | 600 | =B12-C12 | |
Total Expense | =Sum(B5:12) | =sum(C5:C12) | =sum(D5:D12) | |
Surplus (Deficit) | =B2-B13 | =C2-C13 | =D2-D13 | |
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