Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget Sales Cost of Goods Sold Direct Material Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Cost of Goods Sold Gross Profit Variable Sales and Administrative Expenses Fixed Sales and Administrative Expenses Income Before Taxes Taxes Net Income/Loss 100,000 80,000 90,000 $3,370,000 $ $900,000 $ 900,000 230,000 70,000 $2,100,000 $ $1,270,000 100,000 960,000 $210,000 $ 63,000 $147,000 $ $ $

Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget Sales Cost of Goods Sold Direct Material Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Cost of Goods Sold Gross Profit Variable Sales and Administrative Expenses Fixed Sales and Administrative Expenses Income Before Taxes Taxes Net Income/Loss 100,000 80,000 90,000 $3,370,000 $ $900,000 $ 900,000 230,000 70,000 $2,100,000 $ $1,270,000 100,000 960,000 $210,000 $ 63,000 $147,000 $ $ $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12PA: Before the year began, the following static budget was developed for the estimated sales of 100,000....

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