Black Industries has a static budget based on production and sales of 24 000 units. Sales revenue

Question:

Black Industries has a static budget based on production and sales of 24 000 units. Sales revenue is expected to be $96 000, variable costs $36 000 and fixed costs $32 000. Actual production and sales were 30 000 units with a profit of $50 000.

Required

(a) Calculate the amount of profit in the flexible budget.

(b) Calculate the overall variance between the flexible budget and actual results.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Management Accounting

ISBN: 9780730369387

4th Edition

Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey

See More Books

Question Posted: Jul 09, 2021 08:19 AM

See More Questions

The PW value for an alternative is expected to be one of two values based on bids from two vendors. Your office partner told you that the low bid is $3200 per year. If she indicates a chance of 70%...
A printing machine is expected to be operational for 90,000 hours. If the machine costs $84,500 and has a projected salvage value of $2,900, find the unit depreciation. The machine is used for 3,853...
The US inflation rate is expected to be Rs.3 per cent annually and that of India is expected to be 4.5 per cent annually. The current spot rate of US $ in India is Rs.47.4060/US $.Find the expected...
Why are services important? Why is manufacturing important? What are nonmanufactured goods?
What is an accrued revenue? Give an example.
How does a movie theater use off-peak pricing?
In the rainy season, the Amazon flows fast and runs deep. In one location, the river is $23 \mathrm{~m}$ deep and moves at a speed of $4.0 \mathrm{~m} / \mathrm{s}$ toward the east. The earth's...
Six Jobs are to be processed through a two-step operation. The first operation involves sanding, and the second involves painting. Processing times are as follows: Determine a sequence that will...
The average activity of air inside homes in the United States is about 1.5 pCi per liter. What is the average activity of a liter of air, in Bq? In decays per hour? SOLUTION SET UP We use the average...
Alexa Markowitz is a realtor. She buys and sells properties on her own, and she also earns commission as an agent for buyers and sellers. She organized her business as a corporation on March 16,...
Paper Bright Industries uses flexible budgeting to assess budgeted expectations against actual performance. Last month, Paper Bright produced 120 000 units and incurred direct materials cost of $150...
Helium Industries manufactures glitter balloons used as party accessories. The balloons are bagged in packages of 100 and sold for $20 per pack. The company incurs fixed manufacturing overhead of $25...
Define and explain the relationship between margin of safety and degree of operating leverage.
How do authentic leaders cultivate trust and credibility among stakeholders, driving engagement and fostering long-term organizational success?
An individual taxpayer wants to file a claim for refund for tax year 2018. What is the latest date the taxpayer could be allowed the claim if the "look back" provision is not a factor? Explain
How can a leader effectively traverse the intricate landscape of organizational dynamics to cultivate an environment characterized by innovation and adaptability?
. Find the following integral.
How can leaders cultivate resilience and mitigate burnout among team members, ensuring sustainable levels of productivity and well-being?
Redraw the circuit in Problem 40 to show how an ammeter would be connected to measure (a) The current through the 15-Î© resistor and (b) The current through the 24-Î© resistor....
A non-charmed baryon has strangeness S = 2 and electric charge Q = 0. What are the possible values of its isospin I and of its third component I z ? What is it usually called if I = 1/2?
List three quantitative non financial measures of performance in a service organization of your choice.
List three qualitative measures of performance.
What is the single most important factor in making major changes to an organization?
What are the effects of organizational justice perceptions on employee trust and cooperation? How do psychological contracts influence employee expectations and organizational obligations?
The ratio of Jake's compact discs to those of Andrea is 3:2. When they each had two fewer discs it was 5:3. How many discs does Jake have now?
Let U(n) be the set of all positive integers less than n and relatively prime to n. The set U(10) {1,3,7,9} is a group under the multiplication modulo 10 operation. (a) (b) (c) (d) Construct a Cayley...

Black Industries has a static budget based on production and sales of 24 000 units. Sales revenue

Question:

Step by Step Answer:

a and b Based on 30000 units Flexible Budget Actual Results Sale...View the full answer

Management Accounting

Students also viewed these Business questions