Question
Vilano Company developed the following static budget for June. Vilano is in the process of preparing the flexible budget and understanding the results. Actual Results
Vilano Company developed the following static budget for June. Vilano is in the process of preparing the flexible budget and understanding the results.
| Actual Results | Flexible Budget | Static Budget | |
| Sales volume (in units) | 31,000 | 27,500 | |
| Sales revenues | $1,120,500 | $1,320,000 | |
| Variable costs | $590,000 | $687,500 | |
| Contribution margin | $540,000 | $686,090 | |
| Fixed costs | $280,000 | $300,000 | |
| Operating profit | $264,700 | $416,590 |
Develop the flexible budget. What is the variable cost for the flexible budget?
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Accounting In A Nutshell Accounting For The Non-specialist
Authors: Walker, Janet
3rd Edition
075068738X, 9780750687386
