Koppal Company manufacturers tires. Some of the company's data was misplaced. Use the following information to replace the lost data: AnalysisActual ResultsFlexible VariancesFlexible BudgetSales Volume VariancesStatic BudgetUnits Sold225,000 225,000 206,250Revenues$84,160$2,000 F(A)$2,800 U(B)Variable Costs( C )$400 U$31,720$4,680 F$36,400Fixed Costs$16,560$1,720 F$18,280 $18,280Operating Inc.$35,480(D)$32,160(E)$30,280 What are the respective flexible budget (A) and static budget (B)?What are the actual variable costs (C)?What is the total flexible-budget variance (D)?

Variances are the differences between the actual values and budgeted values. If the budgeted values…

Answered: Koppal Company manufacturers tires.…

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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Koppal Company manufacturers tires. Some of the company's data was misplaced. Use the following information to replace the lost data:

Analysis	Actual Results	Flexible Variances	Flexible Budget	Sales Volume Variances	Static Budget
Units Sold	225,000		225,000		206,250
Revenues	$84,160	$2,000 F	(A)	$2,800 U	(B)
Variable Costs	( C )	$400 U	$31,720	$4,680 F	$36,400
Fixed Costs	$16,560	$1,720 F	$18,280		$18,280
Operating Inc.	$35,480	(D)	$32,160	(E)	$30,280

What are the respective flexible budget (A) and static budget (B)?

What are the actual variable costs (C)?

What is the total flexible-budget variance (D)?

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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