Static budget variance analysis for September’s performance. Given information: September 2014, Budgeted sales are 15,000 checkbooks. Budgeted selling price is $ 20 per checkbook. Variable cost is $8 per checkbook. Fixed cost for the month is $145,000. Actual sales are 12,000 checkbooks. Actual selling price is $21 per checkbook. Variable cost is $7 per book. Fixed cost for the month is $150,000.

Question

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Answer 1

Question

Chapter 7, Problem 7.18E

1.

To determine

Static budget variance analysis for September’s performance.

Given information:

September 2014,

Budgeted sales are 15,000 checkbooks.

Budgeted selling price is $ 20 per checkbook.

Variable cost is $8 per checkbook.

Fixed cost for the month is $145,000.

Actual sales are 12,000 checkbooks.

Actual selling price is $21 per checkbook.

Variable cost is $7 per book.

Fixed cost for the month is $150,000.

2.

To determine

Flexible budget variance analysis for September’s performance.

3.

To determine

To explain: Reasons for flexible budget based variance analysis being more informative than static budget based variance analysis.

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Answer 2

Question

Chapter 7, Problem 7.18E

1.

To determine

Static budget variance analysis for September’s performance.

Given information:

September 2014,

Budgeted sales are 15,000 checkbooks.

Budgeted selling price is $ 20 per checkbook.

Variable cost is $8 per checkbook.

Fixed cost for the month is $145,000.

Actual sales are 12,000 checkbooks.

Actual selling price is $21 per checkbook.

Variable cost is $7 per book.

Fixed cost for the month is $150,000.

2.

To determine

Flexible budget variance analysis for September’s performance.

3.

To determine

To explain: Reasons for flexible budget based variance analysis being more informative than static budget based variance analysis.

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 7.18E

1.

To determine

Static budget variance analysis for September’s performance.

Given information:

September 2014,

Budgeted sales are 15,000 checkbooks.

Budgeted selling price is $ 20 per checkbook.

Variable cost is $8 per checkbook.

Fixed cost for the month is $145,000.

Actual sales are 12,000 checkbooks.

Actual selling price is $21 per checkbook.

Variable cost is $7 per book.

Fixed cost for the month is $150,000.

2.

To determine

Flexible budget variance analysis for September’s performance.

3.

To determine

To explain: Reasons for flexible budget based variance analysis being more informative than static budget based variance analysis.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 7.18E

1.

To determine

Static budget variance analysis for September’s performance.

Given information:

September 2014,

Budgeted sales are 15,000 checkbooks.

Budgeted selling price is $ 20 per checkbook.

Variable cost is $8 per checkbook.

Fixed cost for the month is $145,000.

Actual sales are 12,000 checkbooks.

Actual selling price is $21 per checkbook.

Variable cost is $7 per book.

Fixed cost for the month is $150,000.

2.

To determine

Flexible budget variance analysis for September’s performance.

3.

To determine

To explain: Reasons for flexible budget based variance analysis being more informative than static budget based variance analysis.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.18E

1.

To determine

Static budget variance analysis for September’s performance.

Given information:

September 2014,

Budgeted sales are 15,000 checkbooks.

Budgeted selling price is $ 20 per checkbook.

Variable cost is $8 per checkbook.

Fixed cost for the month is $145,000.

Actual sales are 12,000 checkbooks.

Actual selling price is $21 per checkbook.

Variable cost is $7 per book.

Fixed cost for the month is $150,000.

2.

To determine

Flexible budget variance analysis for September’s performance.

3.

To determine

To explain: Reasons for flexible budget based variance analysis being more informative than static budget based variance analysis.

Answer 6

Chapter 7, Problem 7.18E

1.

To determine

Static budget variance analysis for September’s performance.

Given information:

September 2014,

Budgeted sales are 15,000 checkbooks.

Budgeted selling price is $ 20 per checkbook.

Variable cost is $8 per checkbook.

Fixed cost for the month is $145,000.

Actual sales are 12,000 checkbooks.

Actual selling price is $21 per checkbook.

Variable cost is $7 per book.

Fixed cost for the month is $150,000.

Answer 7

Chapter 7, Problem 7.18E

1.

To determine

Static budget variance analysis for September’s performance.

Given information:

September 2014,

Budgeted sales are 15,000 checkbooks.

Budgeted selling price is $ 20 per checkbook.

Variable cost is $8 per checkbook.

Fixed cost for the month is $145,000.

Actual sales are 12,000 checkbooks.

Actual selling price is $21 per checkbook.

Variable cost is $7 per book.

Fixed cost for the month is $150,000.

Answer 8

2.

To determine

Flexible budget variance analysis for September’s performance.

Answer 9

2.

To determine

Flexible budget variance analysis for September’s performance.

Answer 10

3.

To determine

To explain: Reasons for flexible budget based variance analysis being more informative than static budget based variance analysis.

Answer 11

3.

To determine

To explain: Reasons for flexible budget based variance analysis being more informative than static budget based variance analysis.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Flexible budget variance analysis for September’s performance.

To explain: Reasons for flexible budget based variance analysis being more informative than static budget based variance analysis.

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