Flexible Budget: A budget which is forecasted on the basis of variance in outputs which ultimately leads to variance in the relative costs and the revenue thereof is known as flexible budget. It is broader approach to plan budget as it can be altered at any time depending upon the needs of the business. Fixed Costs: Fixed costs are the costs which are uniform over a period of time and irrespective of variances in the output or any other operations of the firm remain constant .They are to be incurred by the businesses even if they do not indulge into their basic business activities. Variable Costs: Variable costs are directly linked to the operations of the business. It undergoes change with respect to changes in the volume of production of the firm over a period of time. It is directly proportional to variations in the business activities. To explain: Flexible budget amounts of fixed and variable costs for 20,000 units.

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Chapter 8, Problem 2QS

To determine

Flexible Budget:

A budget which is forecasted on the basis of variance in outputs which ultimately leads to variance in the relative costs and the revenue thereof is known as flexible budget. It is broader approach to plan budget as it can be altered at any time depending upon the needs of the business.

Fixed Costs:

Fixed costs are the costs which are uniform over a period of time and irrespective of variances in the output or any other operations of the firm remain constant .They are to be incurred by the businesses even if they do not indulge into their basic business activities.

Variable Costs:

Variable costs are directly linked to the operations of the business. It undergoes change with respect to changes in the volume of production of the firm over a period of time. It is directly proportional to variations in the business activities.

To explain: Flexible budget amounts of fixed and variable costs for 20,000 units.

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Transactions: Dec. 3 Wrote off Langston Corporation’s past-due account as uncollectible, $645.75. M203. 9 Accepted a 90-day, 8% note from Farris Company for an extension of time on its account, $2,400.00. NR23. 18 Received cash from Storage Solutions for the maturity value of NR19, a 90-day, 9% note for $2,000.00. R455. 21 Coastal Supply dishonored NR21, a 90-day, 8% note, for $3,000.00. M245. 30 Received cash in full payment of Langston Corporation’s account, previously written off as uncollectible, $645.75. M232 and R463. Task 1 Journalize the transactions for Miller Corporation in Questions Assets that were completed during December of the current year. Use page 12 of the general journal and page 12 of the cash receipts journal. Task 2 Post each entry to the general ledger and to the customer accounts in the accounts receivable ledger. You will not need to make entries to the Item columns of the ledgers. Task 3 Continue to…