Flexible Budget Performance report: Flexible budget is prepared for the actual performance being undertaken during the period. The static budget of a certain level of activity is converted in to activity actually taken place during the place. Now after flexible budget is prepared for actual activity (i.e. standard performance has been fixed for each cost), there are three main element of each respective cost is available i.e. amount as per static budget, amount as per flexible budget and actual amount incurred or received during the year. The Static budget amount and flexible budget amounts are compared to know the volume variance which acknowledges the difference due to change in activity level. The difference between flexible budget amounts and actual amounts are taken as spending variance which acknowledges the difference due to cost or price effect. The Effect on operating income for changes in increased activity level by 400 units from static level activity.

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Answer 1

Question

Chapter 24, Problem 4CP

To determine

Flexible Budget Performance report:

Flexible budget is prepared for the actual performance being undertaken during the period. The static budget of a certain level of activity is converted in to activity actually taken place during the place.

Now after flexible budget is prepared for actual activity (i.e. standard performance has been fixed for each cost), there are three main element of each respective cost is available i.e. amount as per static budget, amount as per flexible budget and actual amount incurred or received during the year. The Static budget amount and flexible budget amounts are compared to know the volume variance which acknowledges the difference due to change in activity level.

The difference between flexible budget amounts and actual amounts are taken as spending variance which acknowledges the difference due to cost or price effect.

The Effect on operating income for changes in increased activity level by 400 units from static level activity.

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Answer 2

Question

Chapter 24, Problem 4CP

To determine

Flexible Budget Performance report:

Flexible budget is prepared for the actual performance being undertaken during the period. The static budget of a certain level of activity is converted in to activity actually taken place during the place.

Now after flexible budget is prepared for actual activity (i.e. standard performance has been fixed for each cost), there are three main element of each respective cost is available i.e. amount as per static budget, amount as per flexible budget and actual amount incurred or received during the year. The Static budget amount and flexible budget amounts are compared to know the volume variance which acknowledges the difference due to change in activity level.

The difference between flexible budget amounts and actual amounts are taken as spending variance which acknowledges the difference due to cost or price effect.

The Effect on operating income for changes in increased activity level by 400 units from static level activity.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 24, Problem 4CP

To determine

Flexible Budget Performance report:

Flexible budget is prepared for the actual performance being undertaken during the period. The static budget of a certain level of activity is converted in to activity actually taken place during the place.

Now after flexible budget is prepared for actual activity (i.e. standard performance has been fixed for each cost), there are three main element of each respective cost is available i.e. amount as per static budget, amount as per flexible budget and actual amount incurred or received during the year. The Static budget amount and flexible budget amounts are compared to know the volume variance which acknowledges the difference due to change in activity level.

The difference between flexible budget amounts and actual amounts are taken as spending variance which acknowledges the difference due to cost or price effect.

The Effect on operating income for changes in increased activity level by 400 units from static level activity.

Expert Solution & Answer

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Answer 4

Question

Chapter 24, Problem 4CP

To determine

Flexible Budget Performance report:

Flexible budget is prepared for the actual performance being undertaken during the period. The static budget of a certain level of activity is converted in to activity actually taken place during the place.

Now after flexible budget is prepared for actual activity (i.e. standard performance has been fixed for each cost), there are three main element of each respective cost is available i.e. amount as per static budget, amount as per flexible budget and actual amount incurred or received during the year. The Static budget amount and flexible budget amounts are compared to know the volume variance which acknowledges the difference due to change in activity level.

The difference between flexible budget amounts and actual amounts are taken as spending variance which acknowledges the difference due to cost or price effect.

The Effect on operating income for changes in increased activity level by 400 units from static level activity.

Expert Solution & Answer

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Answer 5

Chapter 24, Problem 4CP

To determine

Flexible Budget Performance report:

Flexible budget is prepared for the actual performance being undertaken during the period. The static budget of a certain level of activity is converted in to activity actually taken place during the place.

Now after flexible budget is prepared for actual activity (i.e. standard performance has been fixed for each cost), there are three main element of each respective cost is available i.e. amount as per static budget, amount as per flexible budget and actual amount incurred or received during the year. The Static budget amount and flexible budget amounts are compared to know the volume variance which acknowledges the difference due to change in activity level.

The difference between flexible budget amounts and actual amounts are taken as spending variance which acknowledges the difference due to cost or price effect.

The Effect on operating income for changes in increased activity level by 400 units from static level activity.

Answer 6

Chapter 24, Problem 4CP

To determine

Flexible Budget Performance report:

Flexible budget is prepared for the actual performance being undertaken during the period. The static budget of a certain level of activity is converted in to activity actually taken place during the place.

Now after flexible budget is prepared for actual activity (i.e. standard performance has been fixed for each cost), there are three main element of each respective cost is available i.e. amount as per static budget, amount as per flexible budget and actual amount incurred or received during the year. The Static budget amount and flexible budget amounts are compared to know the volume variance which acknowledges the difference due to change in activity level.

The difference between flexible budget amounts and actual amounts are taken as spending variance which acknowledges the difference due to cost or price effect.

The Effect on operating income for changes in increased activity level by 400 units from static level activity.

Answer 7

Chapter 24, Problem 4CP

To determine

Flexible Budget Performance report:

Flexible budget is prepared for the actual performance being undertaken during the period. The static budget of a certain level of activity is converted in to activity actually taken place during the place.

Now after flexible budget is prepared for actual activity (i.e. standard performance has been fixed for each cost), there are three main element of each respective cost is available i.e. amount as per static budget, amount as per flexible budget and actual amount incurred or received during the year. The Static budget amount and flexible budget amounts are compared to know the volume variance which acknowledges the difference due to change in activity level.

The difference between flexible budget amounts and actual amounts are taken as spending variance which acknowledges the difference due to cost or price effect.

The Effect on operating income for changes in increased activity level by 400 units from static level activity.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 24 - Prob. 1QC Ch. 24 - Which is not one of the potential advantages of...Ch. 24 - The Quaker Foods division of PepsiCo is most...Ch. 24 - Which of the following is not a goal of...Ch. 24 - Which of the following balanced scorecard...Ch. 24 - The performance evaluation of a cost center is...Ch. 24 - Prob. 7QC Ch. 24 - Prob. 8QC Ch. 24 - Prob. 9QC Ch. 24 - Prob. 10QC

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Chapter 24 Solutions