Variance: Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance. Flexible Budget Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit. To calculate: Flexible budget variance .

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Answer 1

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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 7, Problem 7.21E

1.

To determine

Variance:

Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance.

Flexible Budget

Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit.

To calculate: Flexible budget variance.

2.

To determine

To calculate: Price and efficiency variance.

3.

To determine

To explain: The results of part 1 and 2.

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General Accounting question

On June 30, 2023, Wisconsin, Incorporated, issued $300,000 in debt and 15,000 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2023, were as follows (credit balances in parentheses): Revenues Expenses Net income Items Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Wisconsin $ (900,000) 660,000 $ (240,000) $ (800,000) (240,000) 90,000 $ (950,000) $ 80,000 400,000 900,000 700,000 $ 2,080,000 $ (500,000) (360,000) (270,000) (950,000) $ (2,080,000) Badger $ (300,000) 200,000 $ (100,000) $ (200,000) (100,000) 0 $ (300,000) $ 110,000…

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Answer 2

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 7, Problem 7.21E

1.

To determine

Variance:

Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance.

Flexible Budget

Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit.

To calculate: Flexible budget variance.

2.

To determine

To calculate: Price and efficiency variance.

3.

To determine

To explain: The results of part 1 and 2.

Expert Solution & Answer

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Answer 3

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 7, Problem 7.21E

1.

To determine

Variance:

Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance.

Flexible Budget

Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit.

To calculate: Flexible budget variance.

2.

To determine

To calculate: Price and efficiency variance.

3.

To determine

To explain: The results of part 1 and 2.

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 7, Problem 7.21E

1.

To determine