CHAPTER 8: FINANCIAL PLANNING & BUDGETING Homework Problem 3.5 Calculate each of the following based upon the data below: Static Budget Flexible Budget Actual Results Total Revenue $4,500,000 $4,550,000 $4,400,000 Total Costs 4,200,000 4,250,000 4,175,000 Projected Profit 300,000 300,000 225,000 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?

CHAPTER &: FINANCIAL PLANNING & BUDGETING Homework Problem 3.5 Calculate each of the following based upon the data below: static Flexible Budget Budget Actual Results Total Revenue $4,500,000 $4,550,000 $4,400,000 Total Costs 4,200,000 4,250,000 4,175,000 Projected Profit 300,000 300,000 220,000 a. Profit variance Revenue variance Cost variance Revenue variances: Volume variance Price variance Cost variances: f. Wolume variance g. Management variance h. What was the biggest factor in the revenue variance? What was the biggest factor in the cost variance