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The actual information pertains to the third quarter. As part of the budgeting process, the XYZ Incorporated had developed the following static budget for the
The actual information pertains to the third quarter. As part of the budgeting process, the XYZ Incorporated had developed the following static budget for the third quarter. Actual Results Static Budget Sales volume (in units) 13,000 12,000 Sales revenues $257.500 $250,000 Variable costs 154,000 175,000 Fixed costs 50,500 49,500 Operating profit $ 53,000 $ 25,500 The primary reason for the variance in operating profits was: the variable-cost variance lower sales volume than planned higher sales volume than planned increased fixed costs
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