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Need help, how do you calculate the flexible budget? The Amherst Company produces engine parts for car manufacturers. A new accountant intern at Amherst has
Need help, how do you calculate the flexible budget?
The Amherst Company produces engine parts for car manufacturers. A new accountant intern at Amherst has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) Begin with the flexible budget columns, then the sales volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round your answers to the nearest whole dollar.) Flexible-Budget Variance Flexible Budget 100,000 Requirements $ Units sold Revenues (sales) Variable costs Contribution margin Fixed costs Actual Results 100.000 650,000 440,000 210,000 165.200 44,800 1. Calculate all the required variances. (If your work is accurate, you will fin that the total static-budget variance is $0.) 2. What are the actual and budgeted selling prices? What are the actual an budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes potential problems. What is the important lesson learned here? Operating income Data Table Print Done Performance Report Year Ended December 31, 2017 Flexible-Budget Flexible Variances Budget Actual Results 100,000 Sales-Volume Variances Static Budget 92,000 $ Units sold Revenues (sales) Variable costs Contribution margin Fixed costs 650,000 440,000 377,200 202,400 210,000 165,200 174,800 130,000 44,800 44.800 Choose from any list or ente Operating incomeStep by Step Solution
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