The following information is given for one of a company's variable expenses: The activity variance is $830 favorable. - The actual amount of the expense is $8,300. - The planned level of activity in the master budget is 1,000 hours. - The actual level of activity is 900 hours. The budget rate per hour for this expense must be:

The following information is given for one of a company's variable expenses: The activity variance is $830 favorable. - The actual amount of the expense is $8,300. - The planned level of activity in the master budget is 1,000 hours. - The actual level of activity is 900 hours. The budget rate per hour for this expense must be:

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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Required information [The following information applies to the questions displayed below.] The fixed budget for 21,600 units of production shows sales of $583,200; variable costs of $64,800; and fixed costs of $143,000. The company's actual sales were 26,900 units at $679,300. Actual variable costs were $113,300 and actual fixed costs were $132,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Sales Variable costs Contribution margin Fixed costs Income X Answer is complete but not entirely correct. Flexible Budget Performance Report Flexible Actual Budget Results $ $ 645,600 80,700 564,900 143,000 421,900 Variances $ 679,300 $ (33,700) 113,300 (32,600) 566,000 (63,500) 132,000 11,000 $ 434,000 $ (12,100) Favorable/ Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable
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