To determine Activity Variance: The difference between actual and budgeted revenue is cost is known as activity variance. Spending Variance ; The difference between the actual and budgeted expenses are known as spending variance. 1. The activity variance for March and explain the meaning of variances. 2. The spending variance for March and explain the meaning of variances. Explanation 1. Flexible Budget Activity Variance Planning Budget Machine-hour (q) 26,000 30,000 Utilities ($20,600 +$0.10q ) $23,200 $400 F $23,600 Maintenance ($40,000 + $1.60q) $81,600 $6,400 F $88,000 Supplies ($0.30q) $7,800 $1,200 F $9,000 Indirect labor ($130,000 + $0.70q) $148,200 $2,800 F $151,000 Depreciation ($70,000) $70,000 0 $70,000 $330,800 $10,800 F $341,600 2. Actual Result Spending Variance Flexible Budget Machine-hour (q) 26,000 26,000 Utilities ($20,600 +$0.10q ) $24,200 $1,000 U $23,200 Maintenance ($40,000 + $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 9, Problem 20P

To determine

Activity Variance: The difference between actual and budgeted revenue is cost is known as activity variance.

Spending Variance; The difference between the actual and budgeted expenses are known as spending variance.

1. The activity variance for March and explain the meaning of variances.

2. The spending variance for March and explain the meaning of variances.

Expert Solution & Answer

Chapter 9 Solutions

Managerial Accounting

Ch. 9 - Prob. 1Q Ch. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3Q Ch. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - What is a revenue variance and what does it mean?Ch. 9 - 9-7 What is a spending variance and what does it...Ch. 9 - 9-8 What does a flexible budget performance report...Ch. 9 - How does a flexible budget based on two cost...Ch. 9 - 9-10 What assumption is implicitly made about cost...

Ch. 9 - 9-11 What assumption is implicitly made about cost...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 2F15 Ch. 9 - Prob. 3F15 Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - L09-1, LO9-2, LO9-3 Adger Corporation is a...Ch. 9 - Prob. 8F15 Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 10F15 Ch. 9 - Prob. 11F15 Ch. 9 - Prob. 12F15 Ch. 9 - Prob. 13F15 Ch. 9 - Prob. 14F15 Ch. 9 - Prob. 15F15 Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - EXERCISE 9-3 Revenue and Spending Variances...Ch. 9 - Prob. 4E Ch. 9 - Prob. 5E Ch. 9 - EXERCISE 9-6 Critique a Variance ReportLO9-6 The...Ch. 9 - Prob. 7E Ch. 9 - EXERCISE 9-8 Flexible Budgets and Activity...Ch. 9 - Fixed Cost...Ch. 9 - ...Ch. 9 - EXERCISE 9-11 Flexible Budget L09-1 Refer to the...Ch. 9 - EXERCISE 9-12 Activity Variances LO9-2 Refer to...Ch. 9 - ...Ch. 9 - EXERCISE 9-14 Prepare a Flexible Budget...Ch. 9 - Prob. 15E Ch. 9 - EXERCISE 9-16 Flexible Budgets and Revenue and...Ch. 9 - EXERCISE 9-17 Flexible Budget Performance Report...Ch. 9 - Prob. 18E Ch. 9 - Prob. 19P Ch. 9 - PROBLEM 9-20 Activity and Spending Variances...Ch. 9 - Prob. 21P Ch. 9 - Prob. 22P Ch. 9 - Prob. 23P Ch. 9 - PROBLEM 9-24 Critiquing a Report; Preparing a...Ch. 9 - PROBLEM 9-25 Critiquing a Variance Report;...Ch. 9 - Prob. 26C Ch. 9 - ...Ch. 9 - Prob. 28C

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