Squeaky Bear Poutine is a popular late-night take-out restaurant. The owner budgets to sell each classic poutine for $10. She budgets to sell 1,500 classic poutines per month and spend $4,500 on food. Due to road construction in front of the location in June, she only sells 1,000 classic poutines at a cost of $3.50 each, earning $9,500 in revenue. 

Required a) Calculate the total static budget variance. 

b) Calculate the total sales-volume variance. 

c) Calculate the total flexible budget variance. 

d) Explain the flexible budget variance. 

e) Explain some possible reasons for the flexible budget variance. 

f ) Calculate the sales price variance. g) Calculate the cost variance

Answer rating: 100% (QA)

a To calculate the total static budget variance we need to compare the actual results with the stati... View the full answer