Complete the performance report shown in S10-3 by filling in all missing values. Be sure to label each variance as favourable (F) or unfavourable (U). Then, answer the following questions:
In Short exercise
1. What was the total static budget variance?
2. What was the total sales volume variance?
3. What was the total flexible budget variance?
4. Show that the total sales volume variance and total flexible budget variance sum to the total static budget variance.
5. Interpret the variances and then give one plausible explanation for the variances shown in this performance report.

  • CreatedApril 30, 2015
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