Can you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000 Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0 Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000 = $220,000 ii) Cost Variance, Volume Variance and Management Variance Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000 Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000 iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000 Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000 Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000) Can you help me interpret these results
Can you help me interpret these results
i)Revenue Variance, Price, and Volume Variance
Revenue variance = Actual revenues – Static revenues
= $2,200,000 - $1,9800,000
= $220,000
Price variance = Actual revenues – Flexible revenues
=$2,2000,000 - $2,200,000
=$0
Volume variance = Flexible revenues – Static revenues
=$2,200,000 - $1,980,000
= $220,000
- ii) Cost Variance, Volume Variance and Management Variance
Cost variance = Static cost - Actual cost
=$1,350,000 -$1,625,000
= $-275,000
Volume = Static cost – Flexible costs
= $1,350,000 - =$1,475,000
= $-125,000
Management variance = Flexible cost- Actual cost
=$2,200,000 - 1,625,000
=$575,000
iii) Profit Variance
Profit Variance= Actual Profit - Static Profit
= 225,000 - 130,000 = 95,000
Revenue Variance = Actual Revenue - Static Revenue
= 2, 200,000 - 1,980,000 = 220,000
Cost Variance = Static Cost - Actual Costs
= 1,850,000 - 1,975,000 = (125,000)
Can you help me interpret these results
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