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Flexible Budget For Actual Sales Activity + (3) Actual Results Flexible-Budget Variances t Sales-Activity Variances at Actual Static Activity Level* (1) (2) = (1) – (3) Budget* (5) (4) = (3) – (5) Units 7,000 7,000 2,000 U 9,000 Sales $ 217,000 $217,000 $62,000 U $279,000 Variable costs 158,270 5,670 U 152,600 43,600 F 196,200 Contribution margin $ 58,730 $5,670 U $ 64,400 $18,400 U $ 82,800 Fixed costs 70,300 300 U 70,000 70,000 Operating income $ (11,570) $5,970 U $ (5,600) $18,400 U $ 12,800 Total flexible-budget variances Total sales-activity variances $5,970 U $18,400 U Total static budget variances, $24,370 U

Flexible Budget For Actual Sales Activity + (3) Actual Results Flexible-Budget Variances t Sales-Activity Variances at Actual Static Activity Level* (1) (2) = (1) – (3) Budget* (5) (4) = (3) – (5) Units 7,000 7,000 2,000 U 9,000 Sales $ 217,000 $217,000 $62,000 U $279,000 Variable costs 158,270 5,670 U 152,600 43,600 F 196,200 Contribution margin $ 58,730 $5,670 U $ 64,400 $18,400 U $ 82,800 Fixed costs 70,300 300 U 70,000 70,000 Operating income $ (11,570) $5,970 U $ (5,600) $18,400 U $ 12,800 Total flexible-budget variances Total sales-activity variances $5,970 U $18,400 U Total static budget variances, $24,370 U

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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This analysis of flexible and static budget variance follows Exhibit 8-6 on page 316. You have to calculate the total variable and fixed flexible budget variances and sales activity variances. All of the green shaded boxes (11 of them) are to contain answers. All of the variances must be designated as favorable or unfavorable.

Only the ? marks and F or U will need answers. Use the chart on pg 316 that is added as a reference to get the number

Flexible Budget For Actual Sales Activity + (3) Actual Results Flexible-Budget Variances t Sales-Activity Variances at Actual Static Activity Level* (1) (2) = (1) – (3) Budget* (5) (4) = (3) – (5) Units 7,000 7,000 2,000 U 9,000 Sales $ 217,000 $217,000 $62,000 U $279,000 Variable costs 158,270 5,670 U 152,600 43,600 F 196,200 Contribution margin $ 58,730 $5,670 U $ 64,400 $18,400 U $ 82,800 Fixed costs 70,300 300 U 70,000 70,000 Operating income $ (11,570) $5,970 U $ (5,600) $18,400 U $ 12,800 Total flexible-budget variances Total sales-activity variances $5,970 U $18,400 U Total static budget variances, $24,370 U
Transcribed Image Text:Flexible Budget For Actual Sales Activity + (3) Actual Results Flexible-Budget Variances t Sales-Activity Variances at Actual Static Activity Level* (1) (2) = (1) – (3) Budget* (5) (4) = (3) – (5) Units 7,000 7,000 2,000 U 9,000 Sales $ 217,000 $217,000 $62,000 U $279,000 Variable costs 158,270 5,670 U 152,600 43,600 F 196,200 Contribution margin $ 58,730 $5,670 U $ 64,400 $18,400 U $ 82,800 Fixed costs 70,300 300 U 70,000 70,000 Operating income $ (11,570) $5,970 U $ (5,600) $18,400 U $ 12,800 Total flexible-budget variances Total sales-activity variances $5,970 U $18,400 U Total static budget variances, $24,370 U
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