Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties. Compute amount of revenue included in flexible budget

Question

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Answer 1

Question

Chapter 9, Problem 1TF15

1

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of revenue included in flexible budget

1

Expert Solution

Answer to Problem 1TF15

The amount of revenue included in flexible budget is $175,000.

Explanation of Solution

Amount of revenue in flexible budget= (Variable element per customer served × Actual activity)Amount of revenue in flexible budget= $5,000×35Amount of revenue in flexible budget=$175,000

2

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages in flexible budget.

2

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages in flexible budget is $88,500.

Explanation of Solution

Amount of flexible budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of flexible budget=(($1,100×35)+$50,000)Amount of flexible budget=$88,500

3

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in flexible budget.

3

Expert Solution

Answer to Problem 1TF15

The travel expense in flexible budget is $21,000.

Explanation of Solution

Amount of travel expenses in flexible budget= (Variable element per customer served × Actual activity)Amount of travel expenses in flexible budget= $600×35Amount of travel expenses in flexible budget=$21,000

4

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expenses in flexible budget.

4

Expert Solution

Answer to Problem 1TF15

The other expenses in flexible budget are $36,000.

Explanation of Solution

The Flexible budget other expenses is $36,000 in May month.

5

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute net operating income in flexible budget.

5

Expert Solution

Answer to Problem 1TF15

The net operating income in flexible budget is $29,500

Explanation of Solution

Particulars	Amount	Amount

Revenue		$175,000
Less: Salaries and wages	$88,500
Travel expenses	$21,000
Other expenses	$36,000	$145,500
Net Operating Income		$29,500

6

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute revenue variances.

6

Expert Solution

Answer to Problem 1TF15

The revenue variances is $15,000 U

Explanation of Solution

Revenue variance in May month= (Amount of revenue in the flexible budget- Actual result)Revenue variance in May month= $175,000-$160,000Revenue variance in May month=$15,000

7

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages spending variance.

7

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages spending variance is $500 F.

Explanation of Solution

Salaries and wages spending variance=(Amount of salaries and wages in flexible budget- Actual result)Salaries and wages spending variance= $88,500-$88,000Salaries and wages spending variance= $550

8

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in spending variance.

8

Expert Solution

Answer to Problem 1TF15

The travel expenses in spending variance are $2,000 F.

Explanation of Solution

Travel expenses spending variance in May month=(Amount of travel expense in flexible budget - Actual result)Travel expenses spending variance in May month=$21,000=$19,000Travel expenses spending variance in May month=$2,000

9

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expense spending variance.

9

Expert Solution

Answer to Problem 1TF15

The other expense spending variance is $1,500 F

Explanation of Solution

Other expenses spending variance= (Amount of travel expense in flexible budget- Actual result)Other expenses spending variance= $36,000- $34,500Other expenses spending variance=$1,500

10

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount if revenue in planning budget.

10

Expert Solution

Answer to Problem 1TF15

The amount if revenue in planning budget is $150,000.

Explanation of Solution

Amount of revenue in planned budget= (Variable element per customer served × Planned activity)Amount of revenue in planned budget= $5,000×30Amount of revenue in planned budget=$150,000

11

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of employee salaries and wages in planning budget.

11

Expert Solution

Answer to Problem 1TF15

The amount of employee salaries and wages in planning budget is $83,000.

Explanation of Solution

Amount of planned budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of planned budget=(($1,100×30)+$50,000)Amount of planned budget=$83,000

12

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of travel expenses in planning budget.

12

Expert Solution

Answer to Problem 1TF15

The amount of travel expenses in planning budget is $18,000.

Explanation of Solution

Amount of Travel expenses in planned budget= (Variable element per customer served × Planned activity)Amount of Travel expenses in planned budget= $600×30Amount of Travel expenses in planned budget=$18,000

13

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of other expenses in planning budget.

13

Expert Solution

Answer to Problem 1TF15

The amount of other expenses in planning budget is $36,000.

Explanation of Solution

The amount of other expenses in planning budget is $36,000 for the month of May.

14

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance report with respect to its revenue.

14

Expert Solution

Answer to Problem 1TF15

The activity variance report with respect to its revenue is $25,000 F

Explanation of Solution

Amount of revenue variance in May month= (Flexible budget revenue- Planned budget)Amount of revenue variance in May month= $175,000-$150,000Amount of revenue variance in May month= $25,000

15

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance with respect to each of its expenses.

15

Expert Solution

Answer to Problem 1TF15

The activity variance with respect to employee salaries and wages is $5,500 unfavorable, travel expense is $3,000 unfavorable, and other expenses are nil

Explanation of Solution

Particulars	Flexible budget	Planning budget	Activity Variances

Employee salaries and wages	$88,500	$83,000	$5,500(U)
Travel expenses	$21,000	$18,000	$3,000 (U)
Other expenses	$36,000	$36,000	$0

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Answer 2

Question

Chapter 9, Problem 1TF15

1

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of revenue included in flexible budget

1

Expert Solution

Answer to Problem 1TF15

The amount of revenue included in flexible budget is $175,000.

Explanation of Solution

Amount of revenue in flexible budget= (Variable element per customer served × Actual activity)Amount of revenue in flexible budget= $5,000×35Amount of revenue in flexible budget=$175,000

2

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages in flexible budget.

2

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages in flexible budget is $88,500.

Explanation of Solution

Amount of flexible budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of flexible budget=(($1,100×35)+$50,000)Amount of flexible budget=$88,500

3

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in flexible budget.

3

Expert Solution

Answer to Problem 1TF15

The travel expense in flexible budget is $21,000.

Explanation of Solution

Amount of travel expenses in flexible budget= (Variable element per customer served × Actual activity)Amount of travel expenses in flexible budget= $600×35Amount of travel expenses in flexible budget=$21,000

4

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expenses in flexible budget.

4

Expert Solution

Answer to Problem 1TF15

The other expenses in flexible budget are $36,000.

Explanation of Solution

The Flexible budget other expenses is $36,000 in May month.

5

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute net operating income in flexible budget.

5

Expert Solution

Answer to Problem 1TF15

The net operating income in flexible budget is $29,500

Explanation of Solution

Particulars	Amount	Amount

Revenue		$175,000
Less: Salaries and wages	$88,500
Travel expenses	$21,000
Other expenses	$36,000	$145,500
Net Operating Income		$29,500

6

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute revenue variances.

6

Expert Solution

Answer to Problem 1TF15

The revenue variances is $15,000 U

Explanation of Solution

Revenue variance in May month= (Amount of revenue in the flexible budget- Actual result)Revenue variance in May month= $175,000-$160,000Revenue variance in May month=$15,000

7

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages spending variance.

7

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages spending variance is $500 F.

Explanation of Solution

Salaries and wages spending variance=(Amount of salaries and wages in flexible budget- Actual result)Salaries and wages spending variance= $88,500-$88,000Salaries and wages spending variance= $550

8

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in spending variance.

8

Expert Solution

Answer to Problem 1TF15

The travel expenses in spending variance are $2,000 F.

Explanation of Solution

Travel expenses spending variance in May month=(Amount of travel expense in flexible budget - Actual result)Travel expenses spending variance in May month=$21,000=$19,000Travel expenses spending variance in May month=$2,000

9

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expense spending variance.

9

Expert Solution

Answer to Problem 1TF15

The other expense spending variance is $1,500 F

Explanation of Solution

Other expenses spending variance= (Amount of travel expense in flexible budget- Actual result)Other expenses spending variance= $36,000- $34,500Other expenses spending variance=$1,500

10

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount if revenue in planning budget.

10

Expert Solution

Answer to Problem 1TF15

The amount if revenue in planning budget is $150,000.

Explanation of Solution

Amount of revenue in planned budget= (Variable element per customer served × Planned activity)Amount of revenue in planned budget= $5,000×30Amount of revenue in planned budget=$150,000

11

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of employee salaries and wages in planning budget.

11

Expert Solution

Answer to Problem 1TF15

The amount of employee salaries and wages in planning budget is $83,000.

Explanation of Solution

Amount of planned budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of planned budget=(($1,100×30)+$50,000)Amount of planned budget=$83,000

12

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of travel expenses in planning budget.

12

Expert Solution

Answer to Problem 1TF15

The amount of travel expenses in planning budget is $18,000.

Explanation of Solution

Amount of Travel expenses in planned budget= (Variable element per customer served × Planned activity)Amount of Travel expenses in planned budget= $600×30Amount of Travel expenses in planned budget=$18,000

13

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of other expenses in planning budget.

13

Expert Solution

Answer to Problem 1TF15

The amount of other expenses in planning budget is $36,000.

Explanation of Solution

The amount of other expenses in planning budget is $36,000 for the month of May.

14

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance report with respect to its revenue.

14

Expert Solution

Answer to Problem 1TF15

The activity variance report with respect to its revenue is $25,000 F

Explanation of Solution

Amount of revenue variance in May month= (Flexible budget revenue- Planned budget)Amount of revenue variance in May month= $175,000-$150,000Amount of revenue variance in May month= $25,000

15

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance with respect to each of its expenses.

15

Expert Solution

Answer to Problem 1TF15

The activity variance with respect to employee salaries and wages is $5,500 unfavorable, travel expense is $3,000 unfavorable, and other expenses are nil

Explanation of Solution

Particulars	Flexible budget	Planning budget	Activity Variances

Employee salaries and wages	$88,500	$83,000	$5,500(U)
Travel expenses	$21,000	$18,000	$3,000 (U)
Other expenses	$36,000	$36,000	$0

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Answer 3

Question

Chapter 9, Problem 1TF15

1

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of revenue included in flexible budget

1

Expert Solution

Answer to Problem 1TF15

The amount of revenue included in flexible budget is $175,000.

Explanation of Solution

Amount of revenue in flexible budget= (Variable element per customer served × Actual activity)Amount of revenue in flexible budget= $5,000×35Amount of revenue in flexible budget=$175,000

2

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages in flexible budget.

2

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages in flexible budget is $88,500.

Explanation of Solution

Amount of flexible budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of flexible budget=(($1,100×35)+$50,000)Amount of flexible budget=$88,500

3

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in flexible budget.

3

Expert Solution

Answer to Problem 1TF15

The travel expense in flexible budget is $21,000.

Explanation of Solution

Amount of travel expenses in flexible budget= (Variable element per customer served × Actual activity)Amount of travel expenses in flexible budget= $600×35Amount of travel expenses in flexible budget=$21,000

4

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expenses in flexible budget.

4

Expert Solution

Answer to Problem 1TF15

The other expenses in flexible budget are $36,000.

Explanation of Solution

The Flexible budget other expenses is $36,000 in May month.

5

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute net operating income in flexible budget.

5

Expert Solution

Answer to Problem 1TF15

The net operating income in flexible budget is $29,500

Explanation of Solution

Particulars	Amount	Amount

Revenue		$175,000
Less: Salaries and wages	$88,500
Travel expenses	$21,000
Other expenses	$36,000	$145,500
Net Operating Income		$29,500

6

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute revenue variances.

6

Expert Solution

Answer to Problem 1TF15

The revenue variances is $15,000 U

Explanation of Solution

Revenue variance in May month= (Amount of revenue in the flexible budget- Actual result)Revenue variance in May month= $175,000-$160,000Revenue variance in May month=$15,000

7

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages spending variance.

7

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages spending variance is $500 F.

Explanation of Solution

Salaries and wages spending variance=(Amount of salaries and wages in flexible budget- Actual result)Salaries and wages spending variance= $88,500-$88,000Salaries and wages spending variance= $550

8

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in spending variance.

8

Expert Solution

Answer to Problem 1TF15

The travel expenses in spending variance are $2,000 F.

Explanation of Solution

Travel expenses spending variance in May month=(Amount of travel expense in flexible budget - Actual result)Travel expenses spending variance in May month=$21,000=$19,000Travel expenses spending variance in May month=$2,000

9

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expense spending variance.

9

Expert Solution

Answer to Problem 1TF15

The other expense spending variance is $1,500 F

Explanation of Solution

Other expenses spending variance= (Amount of travel expense in flexible budget- Actual result)Other expenses spending variance= $36,000- $34,500Other expenses spending variance=$1,500

10

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount if revenue in planning budget.

10

Expert Solution

Answer to Problem 1TF15

The amount if revenue in planning budget is $150,000.

Explanation of Solution

Amount of revenue in planned budget= (Variable element per customer served × Planned activity)Amount of revenue in planned budget= $5,000×30Amount of revenue in planned budget=$150,000

11

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of employee salaries and wages in planning budget.

11

Expert Solution

Answer to Problem 1TF15

The amount of employee salaries and wages in planning budget is $83,000.

Explanation of Solution

Amount of planned budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of planned budget=(($1,100×30)+$50,000)Amount of planned budget=$83,000

12

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of travel expenses in planning budget.

12

Expert Solution

Answer to Problem 1TF15

The amount of travel expenses in planning budget is $18,000.

Explanation of Solution

Amount of Travel expenses in planned budget= (Variable element per customer served × Planned activity)Amount of Travel expenses in planned budget= $600×30Amount of Travel expenses in planned budget=$18,000

13

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of other expenses in planning budget.

13

Expert Solution

Answer to Problem 1TF15

The amount of other expenses in planning budget is $36,000.

Explanation of Solution

The amount of other expenses in planning budget is $36,000 for the month of May.

14

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance report with respect to its revenue.

14

Expert Solution

Answer to Problem 1TF15

The activity variance report with respect to its revenue is $25,000 F

Explanation of Solution

Amount of revenue variance in May month= (Flexible budget revenue- Planned budget)Amount of revenue variance in May month= $175,000-$150,000Amount of revenue variance in May month= $25,000

15

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance with respect to each of its expenses.

15

Expert Solution

Answer to Problem 1TF15

The activity variance with respect to employee salaries and wages is $5,500 unfavorable, travel expense is $3,000 unfavorable, and other expenses are nil

Explanation of Solution

Particulars	Flexible budget	Planning budget	Activity Variances

Employee salaries and wages	$88,500	$83,000	$5,500(U)
Travel expenses	$21,000	$18,000	$3,000 (U)
Other expenses	$36,000	$36,000	$0

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Answer 4

Question

Chapter 9, Problem 1TF15

1

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of revenue included in flexible budget

1

Expert Solution

Answer to Problem 1TF15

The amount of revenue included in flexible budget is $175,000.

Explanation of Solution

Amount of revenue in flexible budget= (Variable element per customer served × Actual activity)Amount of revenue in flexible budget= $5,000×35Amount of revenue in flexible budget=$175,000

2

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages in flexible budget.

2

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages in flexible budget is $88,500.

Explanation of Solution

Amount of flexible budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of flexible budget=(($1,100×35)+$50,000)Amount of flexible budget=$88,500

3

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in flexible budget.

3

Expert Solution

Answer to Problem 1TF15

The travel expense in flexible budget is $21,000.

Explanation of Solution

Amount of travel expenses in flexible budget= (Variable element per customer served × Actual activity)Amount of travel expenses in flexible budget= $600×35Amount of travel expenses in flexible budget=$21,000

4

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expenses in flexible budget.

4

Expert Solution

Answer to Problem 1TF15

The other expenses in flexible budget are $36,000.

Explanation of Solution

The Flexible budget other expenses is $36,000 in May month.

5

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute net operating income in flexible budget.

5

Expert Solution

Answer to Problem 1TF15

The net operating income in flexible budget is $29,500

Explanation of Solution

Particulars	Amount	Amount

Revenue		$175,000
Less: Salaries and wages	$88,500
Travel expenses	$21,000
Other expenses	$36,000	$145,500
Net Operating Income		$29,500

6

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute revenue variances.

6

Expert Solution

Answer to Problem 1TF15

The revenue variances is $15,000 U

Explanation of Solution

Revenue variance in May month= (Amount of revenue in the flexible budget- Actual result)Revenue variance in May month= $175,000-$160,000Revenue variance in May month=$15,000

7

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages spending variance.

7

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages spending variance is $500 F.

Explanation of Solution

Salaries and wages spending variance=(Amount of salaries and wages in flexible budget- Actual result)Salaries and wages spending variance= $88,500-$88,000Salaries and wages spending variance= $550

8

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in spending variance.

8

Expert Solution

Answer to Problem 1TF15

The travel expenses in spending variance are $2,000 F.

Explanation of Solution

Travel expenses spending variance in May month=(Amount of travel expense in flexible budget - Actual result)Travel expenses spending variance in May month=$21,000=$19,000Travel expenses spending variance in May month=$2,000

9

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expense spending variance.

9

Expert Solution

Answer to Problem 1TF15

The other expense spending variance is $1,500 F

Explanation of Solution

Other expenses spending variance= (Amount of travel expense in flexible budget- Actual result)Other expenses spending variance= $36,000- $34,500Other expenses spending variance=$1,500

10

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount if revenue in planning budget.

10

Expert Solution

Answer to Problem 1TF15

The amount if revenue in planning budget is $150,000.

Explanation of Solution

Amount of revenue in planned budget= (Variable element per customer served × Planned activity)Amount of revenue in planned budget= $5,000×30Amount of revenue in planned budget=$150,000

11

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of employee salaries and wages in planning budget.

11

Expert Solution

Answer to Problem 1TF15

The amount of employee salaries and wages in planning budget is $83,000.

Explanation of Solution

Amount of planned budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of planned budget=(($1,100×30)+$50,000)Amount of planned budget=$83,000

12

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of travel expenses in planning budget.

12

Expert Solution

Answer to Problem 1TF15

The amount of travel expenses in planning budget is $18,000.

Explanation of Solution

Amount of Travel expenses in planned budget= (Variable element per customer served × Planned activity)Amount of Travel expenses in planned budget= $600×30Amount of Travel expenses in planned budget=$18,000

13

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of other expenses in planning budget.

13

Expert Solution

Answer to Problem 1TF15

The amount of other expenses in planning budget is $36,000.

Explanation of Solution

The amount of other expenses in planning budget is $36,000 for the month of May.

14

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance report with respect to its revenue.

14

Expert Solution

Answer to Problem 1TF15

The activity variance report with respect to its revenue is $25,000 F

Explanation of Solution

Amount of revenue variance in May month= (Flexible budget revenue- Planned budget)Amount of revenue variance in May month= $175,000-$150,000Amount of revenue variance in May month= $25,000

15

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance with respect to each of its expenses.

15

Expert Solution

Answer to Problem 1TF15

The activity variance with respect to employee salaries and wages is $5,500 unfavorable, travel expense is $3,000 unfavorable, and other expenses are nil

Explanation of Solution

Particulars	Flexible budget	Planning budget	Activity Variances

Employee salaries and wages	$88,500	$83,000	$5,500(U)
Travel expenses	$21,000	$18,000	$3,000 (U)
Other expenses	$36,000	$36,000	$0

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Answer 5

Chapter 9, Problem 1TF15

1

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of revenue included in flexible budget

1

Expert Solution

Answer to Problem 1TF15

The amount of revenue included in flexible budget is $175,000.

Explanation of Solution

Amount of revenue in flexible budget= (Variable element per customer served × Actual activity)Amount of revenue in flexible budget= $5,000×35Amount of revenue in flexible budget=$175,000

2

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages in flexible budget.

2

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages in flexible budget is $88,500.

Explanation of Solution

Amount of flexible budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of flexible budget=(($1,100×35)+$50,000)Amount of flexible budget=$88,500

3

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in flexible budget.

3

Expert Solution

Answer to Problem 1TF15

The travel expense in flexible budget is $21,000.

Explanation of Solution

Amount of travel expenses in flexible budget= (Variable element per customer served × Actual activity)Amount of travel expenses in flexible budget= $600×35Amount of travel expenses in flexible budget=$21,000

4

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expenses in flexible budget.

4

Expert Solution

Answer to Problem 1TF15

The other expenses in flexible budget are $36,000.

Explanation of Solution

The Flexible budget other expenses is $36,000 in May month.

5

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute net operating income in flexible budget.

5

Expert Solution

Answer to Problem 1TF15

The net operating income in flexible budget is $29,500

Explanation of Solution

Particulars	Amount	Amount

Revenue		$175,000
Less: Salaries and wages	$88,500
Travel expenses	$21,000
Other expenses	$36,000	$145,500
Net Operating Income		$29,500

6

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute revenue variances.

6

Expert Solution

Answer to Problem 1TF15

The revenue variances is $15,000 U

Explanation of Solution

Revenue variance in May month= (Amount of revenue in the flexible budget- Actual result)Revenue variance in May month= $175,000-$160,000Revenue variance in May month=$15,000

7

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages spending variance.

7

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages spending variance is $500 F.

Explanation of Solution

Salaries and wages spending variance=(Amount of salaries and wages in flexible budget- Actual result)Salaries and wages spending variance= $88,500-$88,000Salaries and wages spending variance= $550

8

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in spending variance.

8

Expert Solution

Answer to Problem 1TF15

The travel expenses in spending variance are $2,000 F.

Explanation of Solution

Travel expenses spending variance in May month=(Amount of travel expense in flexible budget - Actual result)Travel expenses spending variance in May month=$21,000=$19,000Travel expenses spending variance in May month=$2,000

9

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expense spending variance.

9

Expert Solution

Answer to Problem 1TF15

The other expense spending variance is $1,500 F

Explanation of Solution

Other expenses spending variance= (Amount of travel expense in flexible budget- Actual result)Other expenses spending variance= $36,000- $34,500Other expenses spending variance=$1,500

10

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount if revenue in planning budget.

10

Expert Solution

Answer to Problem 1TF15

The amount if revenue in planning budget is $150,000.

Explanation of Solution

Amount of revenue in planned budget= (Variable element per customer served × Planned activity)Amount of revenue in planned budget= $5,000×30Amount of revenue in planned budget=$150,000

11

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of employee salaries and wages in planning budget.

11

Expert Solution

Answer to Problem 1TF15

The amount of employee salaries and wages in planning budget is $83,000.

Explanation of Solution

Amount of planned budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of planned budget=(($1,100×30)+$50,000)Amount of planned budget=$83,000

12

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of travel expenses in planning budget.

12

Expert Solution

Answer to Problem 1TF15

The amount of travel expenses in planning budget is $18,000.

Explanation of Solution

Amount of Travel expenses in planned budget= (Variable element per customer served × Planned activity)Amount of Travel expenses in planned budget= $600×30Amount of Travel expenses in planned budget=$18,000

13

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of other expenses in planning budget.

13

Expert Solution

Answer to Problem 1TF15

The amount of other expenses in planning budget is $36,000.

Explanation of Solution

The amount of other expenses in planning budget is $36,000 for the month of May.

14

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance report with respect to its revenue.

14

Expert Solution

Answer to Problem 1TF15

The activity variance report with respect to its revenue is $25,000 F

Explanation of Solution

Amount of revenue variance in May month= (Flexible budget revenue- Planned budget)Amount of revenue variance in May month= $175,000-$150,000Amount of revenue variance in May month= $25,000

15

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance with respect to each of its expenses.

15

Expert Solution

Answer to Problem 1TF15

The activity variance with respect to employee salaries and wages is $5,500 unfavorable, travel expense is $3,000 unfavorable, and other expenses are nil

Explanation of Solution

Particulars	Flexible budget	Planning budget	Activity Variances

Employee salaries and wages	$88,500	$83,000	$5,500(U)
Travel expenses	$21,000	$18,000	$3,000 (U)
Other expenses	$36,000	$36,000	$0

Answer 6

Chapter 9, Problem 1TF15

1

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of revenue included in flexible budget

1

Expert Solution

Answer to Problem 1TF15

The amount of revenue included in flexible budget is $175,000.

Explanation of Solution

Amount of revenue in flexible budget= (Variable element per customer served × Actual activity)Amount of revenue in flexible budget= $5,000×35Amount of revenue in flexible budget=$175,000

Answer 7

Chapter 9, Problem 1TF15

1

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of revenue included in flexible budget

Answer 8

1

Expert Solution

Answer to Problem 1TF15

The amount of revenue included in flexible budget is $175,000.

Answer 9

1

Expert Solution

Answer 10

1

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Amount of revenue in flexible budget= (Variable element per customer served × Actual activity)Amount of revenue in flexible budget= $5,000×35Amount of revenue in flexible budget=$175,000

Answer 13

2

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages in flexible budget.

2

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages in flexible budget is $88,500.

Explanation of Solution

Amount of flexible budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of flexible budget=(($1,100×35)+$50,000)Amount of flexible budget=$88,500

Answer 14

2

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages in flexible budget.

Answer 15

2

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages in flexible budget is $88,500.

Answer 16

2

Expert Solution

Answer 17

2

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Amount of flexible budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of flexible budget=(($1,100×35)+$50,000)Amount of flexible budget=$88,500

Answer 20

3

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in flexible budget.

3

Expert Solution

Answer to Problem 1TF15

The travel expense in flexible budget is $21,000.

Explanation of Solution

Amount of travel expenses in flexible budget= (Variable element per customer served × Actual activity)Amount of travel expenses in flexible budget= $600×35Amount of travel expenses in flexible budget=$21,000

Answer 21

3

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in flexible budget.

Answer 22

3

Expert Solution

Answer to Problem 1TF15

The travel expense in flexible budget is $21,000.

Answer 23

3

Expert Solution

Answer 24

3

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Amount of travel expenses in flexible budget= (Variable element per customer served × Actual activity)Amount of travel expenses in flexible budget= $600×35Amount of travel expenses in flexible budget=$21,000

Answer 27

4

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expenses in flexible budget.

4

Expert Solution

Answer to Problem 1TF15

The other expenses in flexible budget are $36,000.

Explanation of Solution

The Flexible budget other expenses is $36,000 in May month.

Answer 28

4

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expenses in flexible budget.

Answer 29

4

Expert Solution

Answer to Problem 1TF15

The other expenses in flexible budget are $36,000.

Answer 30

4

Expert Solution

Answer 31

4

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

The Flexible budget other expenses is $36,000 in May month.

Answer 34

5

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute net operating income in flexible budget.

5

Expert Solution

Answer to Problem 1TF15

The net operating income in flexible budget is $29,500

Explanation of Solution

Particulars	Amount	Amount

Revenue		$175,000
Less: Salaries and wages	$88,500
Travel expenses	$21,000
Other expenses	$36,000	$145,500
Net Operating Income		$29,500

Answer 35

5

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute net operating income in flexible budget.

Answer 36

5

Expert Solution

Answer to Problem 1TF15

The net operating income in flexible budget is $29,500

Answer 37

5

Expert Solution

Answer 38

5

Expert Solution

Answer 39

Expert Solution

Answer 40

Explanation of Solution

Particulars	Amount	Amount

Revenue		$175,000
Less: Salaries and wages	$88,500
Travel expenses	$21,000
Other expenses	$36,000	$145,500
Net Operating Income		$29,500

Answer 41

6

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute revenue variances.

6

Expert Solution

Answer to Problem 1TF15

The revenue variances is $15,000 U

Explanation of Solution

Revenue variance in May month= (Amount of revenue in the flexible budget- Actual result)Revenue variance in May month= $175,000-$160,000Revenue variance in May month=$15,000

Answer 42

6

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute revenue variances.

Answer 43

6

Expert Solution

Answer to Problem 1TF15

The revenue variances is $15,000 U

Answer 44

6

Expert Solution

Answer 45

6

Expert Solution

Answer 46

Expert Solution

Answer 47

Explanation of Solution

Revenue variance in May month= (Amount of revenue in the flexible budget- Actual result)Revenue variance in May month= $175,000-$160,000Revenue variance in May month=$15,000

Answer 48

7

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages spending variance.

7

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages spending variance is $500 F.

Explanation of Solution

Salaries and wages spending variance=(Amount of salaries and wages in flexible budget- Actual result)Salaries and wages spending variance= $88,500-$88,000Salaries and wages spending variance= $550

Answer 49

7

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute employee salaries and wages spending variance.

Answer 50

7

Expert Solution

Answer to Problem 1TF15

The employee salaries and wages spending variance is $500 F.

Answer 51

7

Expert Solution

Answer 52

7

Expert Solution

Answer 53

Expert Solution

Answer 54

Explanation of Solution

Salaries and wages spending variance=(Amount of salaries and wages in flexible budget- Actual result)Salaries and wages spending variance= $88,500-$88,000Salaries and wages spending variance= $550

Answer 55

8

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in spending variance.

8

Expert Solution

Answer to Problem 1TF15

The travel expenses in spending variance are $2,000 F.

Explanation of Solution

Travel expenses spending variance in May month=(Amount of travel expense in flexible budget - Actual result)Travel expenses spending variance in May month=$21,000=$19,000Travel expenses spending variance in May month=$2,000

Answer 56

8

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute travel expenses in spending variance.

Answer 57

8

Expert Solution

Answer to Problem 1TF15

The travel expenses in spending variance are $2,000 F.

Answer 58

8

Expert Solution

Answer 59

8

Expert Solution

Answer 60

Expert Solution

Answer 61

Explanation of Solution

Travel expenses spending variance in May month=(Amount of travel expense in flexible budget - Actual result)Travel expenses spending variance in May month=$21,000=$19,000Travel expenses spending variance in May month=$2,000

Answer 62

9

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expense spending variance.

9

Expert Solution

Answer to Problem 1TF15

The other expense spending variance is $1,500 F

Explanation of Solution

Other expenses spending variance= (Amount of travel expense in flexible budget- Actual result)Other expenses spending variance= $36,000- $34,500Other expenses spending variance=$1,500

Answer 63

9

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute other expense spending variance.

Answer 64

9

Expert Solution

Answer to Problem 1TF15

The other expense spending variance is $1,500 F

Answer 65

9

Expert Solution

Answer 66

9

Expert Solution

Answer 67

Expert Solution

Answer 68

Explanation of Solution

Other expenses spending variance= (Amount of travel expense in flexible budget- Actual result)Other expenses spending variance= $36,000- $34,500Other expenses spending variance=$1,500

Answer 69

10

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount if revenue in planning budget.

10

Expert Solution

Answer to Problem 1TF15

The amount if revenue in planning budget is $150,000.

Explanation of Solution

Amount of revenue in planned budget= (Variable element per customer served × Planned activity)Amount of revenue in planned budget= $5,000×30Amount of revenue in planned budget=$150,000

Answer 70

10

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount if revenue in planning budget.

Answer 71

10

Expert Solution

Answer to Problem 1TF15

The amount if revenue in planning budget is $150,000.

Answer 72

10

Expert Solution

Answer 73

10

Expert Solution

Answer 74

Expert Solution

Answer 75

Explanation of Solution

Amount of revenue in planned budget= (Variable element per customer served × Planned activity)Amount of revenue in planned budget= $5,000×30Amount of revenue in planned budget=$150,000

Answer 76

11

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of employee salaries and wages in planning budget.

11

Expert Solution

Answer to Problem 1TF15

The amount of employee salaries and wages in planning budget is $83,000.

Explanation of Solution

Amount of planned budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of planned budget=(($1,100×30)+$50,000)Amount of planned budget=$83,000

Answer 77

11

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of employee salaries and wages in planning budget.

Answer 78

11

Expert Solution

Answer to Problem 1TF15

The amount of employee salaries and wages in planning budget is $83,000.

Answer 79

11

Expert Solution

Answer 80

11

Expert Solution

Answer 81

Expert Solution

Answer 82

Explanation of Solution

Amount of planned budget= ( ( Variable element per customer served ×Actual activity ) +Fixed elemengt per month)Amount of planned budget=(($1,100×30)+$50,000)Amount of planned budget=$83,000

Answer 83

12

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of travel expenses in planning budget.

12

Expert Solution

Answer to Problem 1TF15

The amount of travel expenses in planning budget is $18,000.

Explanation of Solution

Amount of Travel expenses in planned budget= (Variable element per customer served × Planned activity)Amount of Travel expenses in planned budget= $600×30Amount of Travel expenses in planned budget=$18,000

Answer 84

12

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of travel expenses in planning budget.

Answer 85

12

Expert Solution

Answer to Problem 1TF15

The amount of travel expenses in planning budget is $18,000.

Answer 86

12

Expert Solution

Answer 87

12

Expert Solution

Answer 88

Expert Solution

Answer 89

Explanation of Solution

Amount of Travel expenses in planned budget= (Variable element per customer served × Planned activity)Amount of Travel expenses in planned budget= $600×30Amount of Travel expenses in planned budget=$18,000

Answer 90

13

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of other expenses in planning budget.

13

Expert Solution

Answer to Problem 1TF15

The amount of other expenses in planning budget is $36,000.

Explanation of Solution

The amount of other expenses in planning budget is $36,000 for the month of May.

Answer 91

13

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute amount of other expenses in planning budget.

Answer 92

13

Expert Solution

Answer to Problem 1TF15

The amount of other expenses in planning budget is $36,000.

Answer 93

13

Expert Solution

Answer 94

13

Expert Solution

Answer 95

Expert Solution

Answer 96

Explanation of Solution

The amount of other expenses in planning budget is $36,000 for the month of May.

Answer 97

14

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance report with respect to its revenue.

14

Expert Solution

Answer to Problem 1TF15

The activity variance report with respect to its revenue is $25,000 F

Explanation of Solution

Amount of revenue variance in May month= (Flexible budget revenue- Planned budget)Amount of revenue variance in May month= $175,000-$150,000Amount of revenue variance in May month= $25,000

Answer 98

14

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance report with respect to its revenue.

Answer 99

14

Expert Solution

Answer to Problem 1TF15

The activity variance report with respect to its revenue is $25,000 F

Answer 100

14

Expert Solution

Answer 101

14

Expert Solution

Answer 102

Expert Solution

Answer 103

Explanation of Solution

Amount of revenue variance in May month= (Flexible budget revenue- Planned budget)Amount of revenue variance in May month= $175,000-$150,000Amount of revenue variance in May month= $25,000

Answer 104

15

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance with respect to each of its expenses.

15

Expert Solution

Answer to Problem 1TF15

The activity variance with respect to employee salaries and wages is $5,500 unfavorable, travel expense is $3,000 unfavorable, and other expenses are nil

Explanation of Solution

Particulars	Flexible budget	Planning budget	Activity Variances

Employee salaries and wages	$88,500	$83,000	$5,500(U)
Travel expenses	$21,000	$18,000	$3,000 (U)
Other expenses	$36,000	$36,000	$0

Answer 105

15

To determine

Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.

Compute activity variance with respect to each of its expenses.

Answer 106

15

Expert Solution

Answer to Problem 1TF15

The activity variance with respect to employee salaries and wages is $5,500 unfavorable, travel expense is $3,000 unfavorable, and other expenses are nil

Answer 107

15

Expert Solution

Answer 108

15

Expert Solution

Answer 109

Expert Solution

Answer 110

Explanation of Solution

Particulars	Flexible budget	Planning budget	Activity Variances

Employee salaries and wages	$88,500	$83,000	$5,500(U)
Travel expenses	$21,000	$18,000	$3,000 (U)
Other expenses	$36,000	$36,000	$0