CHAPTER $8$: FINANCIAL PLANNING & BUDGETING

Homework Problem $3\mathrm{.}5$

Calculate each of the following based upon the data below:

$\backslash$table$[[,$Static Budget,Flexible Budget,Actual Results$],[$Total Revenue,$4700000\mathrm{.}00,4800000\mathrm{.}00,4500000\mathrm{.}00],[$Total Costs,$4100000\mathrm{.}00,4100000\mathrm{.}00,4200000\mathrm{.}00],[$Projected Profit,$600000\mathrm{.}00,700000\mathrm{.}00,300000\mathrm{.}00]]$

a$.$ Profit variance

b$.$ Revenue variance

c$.$ Cost variance

Revenue variances:

d$.$ Volume variance

e$.$ Price variance

Cost variances:

f$.$ Volume variance

g$.$ Management variance

h$.$ What was the biggest factor in the revenue variance?

i$.$ What was the biggest factor in the cost variance?