You are working with a manufacturer under Boardz Co. This company creates Board game tables from scratch. 35

They had the following forecasted/budgeted for the full 2020 year:

Sales in dollars $750,000

Selling price per unit $750

lumber pieces used per set 3

Cost for one unit of lumber $2.5

DLH per unit, $25 per 1.0

At the end on 2020, they knew the following:

Sales in dollars $625,000

Selling price per unit $500

lumber pieces used (total) 5,000

Cost for one unit of lumber $2

DL$ paid total, $24 per hour $100,000

Formulas

Price Var. = - (Actual price - budgeted price)*Actual Q

Efficiency Var. = -(Actual Quantity used - flex Budgeted Quantity) * Budgeted Price

Flexible budget variance = price + efficiency

Flexible budget variance also = actual total- flex budget total

c)Yourememberfromyouruniversitydays,thereisamiddlestepbetween"static"budgetand"actual"

budget,andyoufirsthavetocalculatetheflexiblerevenuebudgetamount.WhatRevenue'sflexiblebudget?3Marks

"c) You remember from your university days, there is a middle step between ""static"" budget and ""actual""

budget, and you first have to calculate the flexible revenue budget amount. What Revenue's flexible budget? 3 Marks"

2Actual 3Flex 1static

Revenue