1. Prepare a columnar flexible budget for Burchard's Freight & Haulage based on revenue levels of $90,000, $100,000 and $110,000
2. What is the flexible budget equation?
3. Prepare a detailed performance report which will show activity volume variances and flexible budget variances, item by item.
4. Although there are a number of favorable variances in Bob Burchard's report, actual net profit is only abut 65% of budgeted net profit. Explain why this is so.