Reynolds Construction Materials Company has a sales office that sells concrete culvert pipes to property developers. The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided. Revenue Center Responsibility Report Actual Sales Revenue Variance $31,600 Flexible Budget Sales Volume Variance Product Iype 40 inch 36 inch long Flexible Budget $30,000 42,100 Static Budget $40,600 33,100 30,000 U/F U/F 40,150 36,200 19,000 36 inch short 33,100 32 inch 20,900 28,000 What is the flexible budget variance for the 40 – inch pipe? O A. $10,600 F O B. $1,600 F OC. $1,600 U O D. $10,600 U

Q: Crex Co was set up by Cynthia Rex who created her own brand of chalk paint 20 years ago. Using her…

A: Total material yield variance = Standard cost of the standard quantity of input materials in the…

Q: Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a…

A:

Q: None

A: A. Fixed overhead volume varianceThe fixed overhead volume variance, which describes the capacity…

Q: 1 Which of the following variances would be useful in calling attention to possible problems in the…

A: Detailed explanation: Understanding Overhead Variances:Overhead costs are the indirect costs of…

Q: nesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The…

A: Solution: Variances are the differences in actual results and standard set for those actual results.…

Q: hat is a fixed budgett

A: Introduction: A budget is a forecast of income and expenses for a specific future time period that…

Q: Why is the flexible-budget variance the same amount as the spending variance for fixed manufacturing…

A: Spending variance:It indicates the amount of actual cost incurred for actual production over the…

Q: Kranberry Networks Ltd had implemented a standard costing system to aid it in assessing the…

A: Material Price Variance = ( Standard Price - Actual Price) * Actual Quantity Material Quantity =…

Q: At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material -…

A: Standard price = Estimated Raw material cost / Estimated units Raw material efficiency variance =…

Q: What can you tell me about variance, as it concerns fixed or variable budgets? What is favorable…

A: The question is related to Standard costing and Budgetory Comtrol. Variance may be defined as the…

Q: How do flexible budgets differ from static budgets?

A: Flexible Budgets: Flexible budgets are prepared for various levels of activities or outputs. This…

Q: Fixed overhead volume variance is a flexible budget variance. O True False

A: Fixed overheads are those indirect costs which will not change with change in activity level. These…

Q: Which of the following statements is true? Multiple Choice The spending variance for a fixed expense…

A: Spending variance is the representation of the difference that arises in due to actual and the…

Q: 7. The sum of the direct labor rate and efficiency variances is equal to: A) The Flexible Budget…

A: A direct labor rate variance analysis is performed to determine the difference between the actual…

Q: Google monitors its fixed overhead. In an analysis of fixed overhead cost variances, what is the…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: In 75 words or fewer, explain what a cost variance is and describe its potential causes.

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: The total manufacturing cost variance is a.the flexible budget variance plus the time variance b.the…

A: Variance means difference between standard cost of producing goods and actual cost of producing same…

Q: When analyzing an organization's budget using 2-variance analysis, the 2 elements used are volume…

A: The correct answer is: b. price varianceA 2-variance study of an organization's budget includes two…

Q: Assume the company's threshold for determining the materiality of each variance is 5% of its…

A: Cost variance is a cost management term that refers to the difference between the budgeted cost for…

Q: ent, calculate the flexible budget, the spending and the efficiency variances for variable…

A: The variance is the difference between the actual costs and standard production costs. The spending…

Q: Which one of the following is the variance that deals with under or over achievement of budgeted…

A: Budgeted direct labor hours refer to the estimated or planned amount of time that is allocated for…

Q: An example of a performance measure with a long−timehorizon is​ ________.   A. quality of room…

A: An overall performance size is a numeric final result of an evaluation that shows how properly an…

Q: which formula is correct for budget variance. Please see below:   * Static Budget Variance…

A: Static Budget Variance is the difference between the actual results and the static budget = (Actual…

Q: What is the difference between a flexible budget based on actual volume and a master budget based on…

A: The correct term for the difference between a flexible budget based on actual volume and a master…

Q: How is a flexible budget used?

A:

Q: Which ONE of the following is true?   a. Assume all costs are fixed when creating a flexible…

A: A flexible budget is a financial plan that adjusts or flexes to changes in the level of activity or…

Q: Variance Industries, Ltd. creates problems for accounting students. At the end of the first quarter…

A: The variance is the difference between the actual costs and standard production costs. The spending…

Q: What are the relations among standard costs, flexible budgets, variance analysis and managment by…

A: Because actual costs cannot be predicted in advance, standard costs are estimations of actual costs…

Q: Which one of the following best describes the direct material price variance? O a. The difference…

A: Direct Material price variance can be calculated by using the following formula:  (AQ × SP ) -…

Q: Which of the following is a correct equation to calculate the fixed overhead production-volume…

A: Variances are calculated to compare the standard fixed with the actual performance of the company.

Q: Draw a graph showing budgeted and applied fixed overhead, and show an unfavorable (or positive)…

A:

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.