Question

Barnes Entertainment Corporation prepared a master budget for the month of November that was based on sales of 150,000 board games. The budgeted income statement for the period is as follows.


During November, Barnes produced and sold 180,000 board games. Actual results for the month are as follows.


Required
a. Prepare a flexible budget for November.
b. Calculate Barnes’s static budget variance for November.
c. Will the static budget variance that you calculated in part (b) be useful to management?
Why or why not?
d. Based on the available information, prepare a performance report for management.
e. Comment on the results of yourreport.


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  • CreatedFebruary 21, 2014
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