Flexible Budget: A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business. Flexible Budget Performance Report: A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest. To prepare: Flexible budget performance report.

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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.

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

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PART 2. (22 marks) Mangal Furnishings produce serving trays for the tourist industry in a five-stage process - Cutting & Shaping, Assembly, Sanding, Finishing and Packaging. Upon entering the finishing process, before the trays are stained and polished, a specialized piece of equipment is used to engrave a logo on each tray. After Packaging, the trays are sent to the business warehouse for delivery to customers. The following data relates to the Finishing Process for the month of March during which 3,800 trays valued at $597.90 each were transferred in from the Sanding Process. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Hireage cost of specialized logo equipment Manufacturing Overhead $343,380 $830,150 $21,300 $412,100 Process inspection occurs during the process and normally 2% of the trays entering the Finishing process are rejected and sold as scrap to local retailers at $750 each. During the month…

Equipment that costs $110,000 and on which $50,000 of accumulated depreciation has been recorded was disposed of for $70,000 cash. Recording this event would include an: A. gain of $10,000 B. A loss of $5,000. C. Increase to accumulated depreciation for $15,000 D. Decrease to equipment for $15,000.

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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.

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Expert Solution & Answer

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Answer 3

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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.

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

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.

Chapter 21, Problem 1QS

To determine