Dashboard C X = 150 of 322 > Business Ve X W LO 8-3, 8-4 esc prod.reader-ui.prod.mheducation.com/epub/sn_8e... 1 Q Careers O F1 Exercise 8-6A Using a flexible budget to accommodate market uncertainty According to its original plan, Topeka Consulting Services Company plans to charge its customers for service at $120 per hour in Year 2. The company president expects consulting services provided to customers to reach 45,000 hours at that rate. The marketing manager, however, argues that actual results may range from 40,000 hours to 50,000 hours because of market uncertainty. Topeka's standard variable cost is $45 per hour, and its standard fixed cost is $1,350,000. Required Develop flexible budgets based on the assumptions of service levels at 40,000 hours, 45,000 hours, and 50,000 hours. @2 X M Sign In | Cor X F2 Exercise 8-7A Evaluating a decision to increase sales volume by lowering sales price Secor Educational Services had budgeted its training service charge at $120 per hour. The company planned to provide 30,000 hours of training services during Year 3. By lowering the service charge to $114 per hour, the company was able to increase the actual number of hours to 31,500. Required W #3 80 F3 Mc E $ 4 Exercises- X a F4 R 07 do % N 5 9 + Update: F5 Aa Page 381 T G 6 F6

Exercise 8-6. Lisine a thrikir Budget to accomumalat meriet ancernaitity Acconcing to ins ofizinal plan. Togcka Ccewulhing Services Comguny ploess so chatee its cuslomen for sertice at 5120 per boer in Ycar 2. The comphasy greildent. expects consulting yervices jrovided to customers to reach 45,000 howin at that rale. The marketing manaper, hotever, ardues that aclual revults may ram re fruth 40,000 hours to $0.000 hoser becance of marker uncertainty. Togelais sundund variable cost is 545 . por hoar, and its standard fixed cost is $1,350,000. Required Develop flevible budpis baxed on the assumptions of service levels at 40 oon hogrs. 45000 hours, and 50,000 hours. 4083,84 Secor Educational Services had budgeted its training service chargt at 31 ta bert hrot. The company planned 40 peovide 30.000 hours of trainice services darith Year 3. By fowering the service charge to $I14 per loouf, the coenpany was able to increase tae actual number of horars to 31.400. Exercise 8-6. Lisine a thrikir Budget to accomumalat meriet ancernaitity Acconcing to ins ofizinal plan. Togcka Ccewulhing Services Comguny ploess so chatee its cuslomen for sertice at 5120 per boer in Ycar 2. The comphasy greildent. expects consulting yervices jrovided to customers to reach 45,000 howin at that rale. The marketing manaper, hotever, ardues that aclual revults may ram re fruth 40,000 hours to $0.000 hoser becance of marker uncertainty. Togelais sundund variable cost is 545 . por hoar, and its standard fixed cost is $1,350,000. Required Develop flevible budpis baxed on the assumptions of service levels at 40 oon hogrs. 45000 hours, and 50,000 hours. 4083,84 Secor Educational Services had budgeted its training service chargt at 31 ta bert hrot. The company planned 40 peovide 30.000 hours of trainice services darith Year 3. By fowering the service charge to $I14 per loouf, the coenpany was able to increase tae actual number of horars to 31.400