Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. The following variances were observed: Actual ResultsVariancesUnits Sales$162,000$27,000FavorableVariable Expenses77,90012,900UnfavorableFixed Expenses80,200200UnfavorableNet Income (loss)$3,900$13,900UnfavorableDetermine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300). Static budgetFlexible budgetActual ResultsVariancesUnitsfill in the blank 1fill in the blank 2 Sales$fill in the blank 3$fill in the blank 4$fill in the blank 5$fill in the blank 6 Variable Expensesfill in the blank 8fill in the blank 9fill in the blank 10fill in the blank 11 Fixed Expensesfill in the blank 13fill in the blank 14fill in the blank 15fill in the blank 16 Net Income (Loss)$fill in the blank 18$fill in the blank 19$fill in the blank 20$fill in the blank 21 Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. The following variances were observed:Actual ResultsVariancesUnitsSales$162,000$27,000 FavorableVariable Expenses77,90012,900 UnfavorableFixed Expenses80,200200 UnfavorableNet Income (Iloss)$3,900$13,900 UnfavorableDetermine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. If no effect, select "No Effect" and leavethe amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300).Static budgetFlexible budgetActual ResultsVariancesUnitsSales$Variable ExpensesFixed ExpensesNet Income (Loss)$

Flexible budget is static budget that is prepared for actual level of activity. Flexible Budget…

Answered: itanium Blades refines titanium for use…

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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Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. The following variances were observed:

	Actual Results	Variances
Units
Sales	$162,000	$27,000	Favorable
Variable Expenses	77,900	12,900	Unfavorable
Fixed Expenses	80,200	200	Unfavorable
Net Income (loss)	$3,900	$13,900	Unfavorable

Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300).

	Static budget	Flexible budget	Actual Results	Variances
Units	fill in the blank 1	fill in the blank 2
Sales	$fill in the blank 3	$fill in the blank 4	$fill in the blank 5	$fill in the blank 6
Variable Expenses	fill in the blank 8	fill in the blank 9	fill in the blank 10	fill in the blank 11
Fixed Expenses	fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16
Net Income (Loss)	$fill in the blank 18	$fill in the blank 19	$fill in the blank 20	$fill in the blank 21

Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. The following variances were observed:
Actual Results
Variances
Units
Sales
$162,000
$27,000 Favorable
Variable Expenses
77,900
12,900 Unfavorable
Fixed Expenses
80,200
200 Unfavorable
Net Income (Iloss)
$3,900
$13,900 Unfavorable
Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. If no effect, select "No Effect" and leave
the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300).
Static budget
Flexible budget
Actual Results
Variances
Units
Sales
$
Variable Expenses
Fixed Expenses
Net Income (Loss)
$

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