Question
Hi, I need help with this question. Yesterday was said not information in the question but this is everything that has been provided. Please help.
Hi, I need help with this question. Yesterday was said not information in the question but this is everything that has been provided. Please help.
Here is the link provided: https://docs.google.com/document/d/1Vhfxwoz8GQBCqrmbAiE-z8qkGXAzbSy4cIBG5Nvj27A/edit?usp=sharing
Vroom-Vroom manufactures ride-on cars for toddlers and young children. They have a fiscal year of January through December. When they were preparing their budget, they couldn't decide if a static or flexible budget would be best for their company - so they did both. It is now March, and their accounting department is catching up on analyzing variances for both January and February. Vroom-Vroom would like to use this opportunity to determine whether they would be better off with a static or flexible budget going forward. They want to choose which budget and related variance analysis provides them the best information for decision-making.
Here is the data that Vroom-Vroom used for their budgets:
Monthly budget data
Selling price per unit-$79 per each
Raw materials cost-$32 per each
Packaging cost-$16 per each
Electricity-$5 per each
Waste and other cost-$7 per each
Salary and wages cost-$580,000 per month
Fringe benefits-50% of salaries
Rent cost-$950,000 per month
Insurance cost-$60,000 per month
Depreciation cost-$370,000 per month
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