you must create the flexible budget, and flexible budget variances for 2 cost items. Before you compute
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Question:
you must create the flexible budget, and flexible budget variances for 2 cost items.
- Before you compute the variances, you must identify the parameters of the cost functions (ie the fixed cost and variable cost per unit)
- Be careful to use the correct activity measure
- read the directions about the sign that you should enter
Four Flags is a retail department store, on jan 1 2019, Four Flags Accountants used the following data to develop a master budget:
Cost Fixed Variable (per sales dollar)
Selling & Prom. cost $200.000 $.080
Delivery expenses $115,000 $.010
Expected units sales 1,300,000, and dollars 13,000,000, and actual units 1,000,000 and actual sales $10,000,000
Actual cost
Selling & promotion $900,000
Delivery exp $ 170,000
Need to find the variances
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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