Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 4,500 units. The following variances were observed: Actual Results Variances Units Sales Variable Expenses Fixed Expenses Net Income (loss) $137,500 $25,000 Favorable 71,200 12,700 Unfavorable 63,400 400 Unfavorable $2,900 $11.900 Unfavorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 5,500 units actually sold. If no effect, select "No Effect" and leave th numbers use a minus sign. Units Sales Variable Expenses Fixed Expenses Net Income (Loss) Static budget 4,500 112,500 ✔ 58,500 X 63,000 X -9,000 ✓ Flexible budget Actual Results 5,500✔ 137,500 ✔ 71,500 X 77,000 X -11,000 X 137,500 71,300 X 63,300 X 2,900 ✓ Variances No Effect 200 x Favorable 13,700 X Unfavorable 13,900 X Unfavorable
Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 4,500 units. The following variances were observed: Actual Results Variances Units Sales Variable Expenses Fixed Expenses Net Income (loss) $137,500 $25,000 Favorable 71,200 12,700 Unfavorable 63,400 400 Unfavorable $2,900 $11.900 Unfavorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 5,500 units actually sold. If no effect, select "No Effect" and leave th numbers use a minus sign. Units Sales Variable Expenses Fixed Expenses Net Income (Loss) Static budget 4,500 112,500 ✔ 58,500 X 63,000 X -9,000 ✓ Flexible budget Actual Results 5,500✔ 137,500 ✔ 71,500 X 77,000 X -11,000 X 137,500 71,300 X 63,300 X 2,900 ✓ Variances No Effect 200 x Favorable 13,700 X Unfavorable 13,900 X Unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 4,500 units. The following variances were observed:
Actual Results
Variances
Units
Sales
Units
Sales
Variable Expenses
$137,500
71,200
Variable Expenses
Fixed Expenses
Net Income (loss)
Determine the static budget and use the information to prepare a flexible budget and analysis for the 5,500 units actually sold. If no effect, select "No Effect" and leave them
numbers use a minus sign.
Fixed Expenses
Net Income (Loss)
63,400
$2,900
$25,000 Favorable
12,700 Unfavorable
400 Unfavorable
$11,900 Unfavorable
Static budget
4,500 ✔
112,500 ✔
58,500 X
63,000 X
-9,000 ✓
Flexible budget Actual Results
5,500✔
137,500 ✓
71,500 x
77,000 X
-11,000 X
137,500
71,300 X
63,300 X
2,900 ✓
Variances
No Effect
200 X Favorable
13,700 X Unfavorable
13,900 X Unfavorable
✔
- V
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