Prepare the flexible budget like exhibit 12.4 for the activity of moving materials, but you will use
Question:
Prepare the flexible budget like exhibit 12.4 for the activity of moving materials, but you will use the number of moves as the activity driver.
Use60,000moves and 80,000moves
2.What if the actual costs incurred were the amounts below for 60,000 moves.
Prepare the activity-based performance report like exhibit 12.6 to present a comparison of actual to budget with a budget variance determine.
You must also designate U or F if there is a variance.If there is no variance you can leave the designation blank, since the variance of zero is not U or F.You must use the IF Function to designate U or F to earn credit.
ActivityActual cost
Salaries$1,290,000
Leases144,000
Crates 118,000
Fuel24,000
3.Explain what type of value that the moving activity provides the company.Provided a recommendation on what the company should attempt to do with this activity.
Solution:
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan