This analysis of flexible and static budget variance follows Exhibit 8-6 on page 316. You have to calculate the total variable and fixed flexible budget variances and sales activity variances. All of the Bold shaded boxes (11 of them) are to contain answers. All of the variances must be designated as favorable or unfavorable.

All of the answers have ? or F or U and are in bold those require information the numbers given in the chart are correct please do not change. some hints are given.

variable and fixed ffavorable or unfavorable.

	A	B	C	D	E	F	G	H	I	J	K
5		Actual results at			Flexible Budget for
6		Actual Activity Level			Actual Sales Activity				Static Budget
7					2				3
8					90	(# requests)			75	(the static budget # of requests) TIMES the
9						TIMES
10	Systems Consulting,				$500	Variable cost per request =			?	Variable cost per request
11	VARIABLE COST	? (fill in actual variable costs)			$45,000	BUDGETED VARIABLE			?	EQUALS the static budget expected
12										variable cost
13
14	PLUS		?	"F" or "U"?	cell B14 - cell D14)

?

"F" or "U"?

cell D14 - cell G14)

15 16 17 18

Systems Consulting,

$78,000

given

$65,000

given

$65,000

given

19

FIXED COST

20 21 22 23

EQUALS

?

"F" or "U"?

cell B18 - cell D18)

"F" or "U"?

?

cell D18 - cell G18)

24 25

Systems Consulting,

26

TOTAL COST

$124,000

given

$102,500

Systems Consulting,

27

Total

28

Note! All of the following boxes (BOLD >>>>>

have to be filled in, including the "F" or "U", meaning

favorable or unfavorable variance: 11B,

14C, 14D, 23C, 23D, 14G, 14H, 10I, 11I, 23H, 23I.

316 PART 2 ACCOUNTING FOR PLANNING AND CONTROL Actual Results at Actual Activity Level Flexible-Budget Variances t Flexible Budget For Actual Sales Activity Sales-Activity Variances Static Budget* 7,000 Units Sales Variable costs Contribution margin Fixed costs Operating income 7,000 $217,000 152,600 64,400 70,000 9,000 $279,000 196,200 82,800 70,000 12,800 217,000 $62,000 U 43,600 F $18,400 U 5,670 U 58,730 70,300 $5,670 U 300 U $5,970 U Total flexible-budget variances 5,970 U $18,400 U Total sales activity variances 18,400 U (11.570) Total static t variances,$24,370 U J-Unfavorable. F = Favorable. Figures are from Exhibit 8-1 tFigures are shown in more detail in Exhibit 8-7 Figures are from the 7,000-unit column inEdibit 83. Exhibit 8-6 Dominion Company Summary of Performance for the Month Ended June 30, 20x1