Question
The following budgeted and actual volume and cost data are for July of this year. Prepare a flexible budget analysis for July of this year
The following budgeted and actual volume and cost data are for July of this year.
Prepare a flexible budget analysis for July of this year by filling in the Flexible budget amounts based on the actual sales volume and calculating the variances.DONT FORGET TO INDICATE WHETHER THEY ARE FAVORABLE OR UNFAVORABLE!
| Budget (per unit) | Budget | Actual | FLEXIBLE BUDGET | Variance | ||
| Volume | 40,000 | 40,000 | 36,000 | 36,000 | ||
| Sales Revenue | $70 per unit | $2,800,000 | $2,520,000 | |||
| Budgeted manufacturing costs: | ||||||
| Variable costs: | ||||||
| Direct materials | $35.00 | $1,400,000 | $1,350,000 | |||
| Direct labor | 15.00 | 600,000 | 580,000 | |||
| Overhead | 5.00 | 200,000 | 180,000 | |||
| Total fixed overhead costs | $450,000 | 450,000 | 406,000 | |||
| Net Income before taxes | $150,000 | 4,000 |
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Managerial Accounting
Authors: Karen Braun, Linda S Bamber
2nd Edition
136091164, 978-0136091165
