Complete the following flexible budget and Give one possible explanation for each of the variances. Master Budget
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Question:
Complete the following flexible budget and Give one possible explanation for each of the variances.
Master Budget | Flexible budget | Actual Results | |||||
Sales volume (in units) | 20,000 | 18,500 | |||||
Sales Revenue | $1,050,000 | $972,000 | |||||
Variable costs | 500,000 | 477,000 | |||||
Contribution margin | 550,000 | 495,000 | |||||
Capacity-related (fixed) costs | 380,000 | 385,000 | |||||
Operating profit | $170,000 | $110,000 |
Expert Answer:
Based on the given data we can calculate the variances for the flexible budget and compare them to t... View the full answer
Related Book For 
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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