Explanation Variance is ascertained by the determining the difference between actual amounts and budgeted amounts. A variance which increases the operating income is a favorable variance and variance which decreases the operating income is an unfavorable variance. A favorable variance is symbolized by (F) and unfavorable variance is symbolized by (U). So if the actual cost is more than the budgeted cost, it is considered unfavorable variance and vice-versa. And if the actual revenue is less than budgeted revenue, it is considered unfavorable and vice-versa. Given: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) 18,000 Revenue ($4.50q) $81,000 Expenses: Raw materials ($2.40q) $43,200 Wages and salaries ($5,200 + $0.30q) $10,600 Utilities ($2,400 + $0.05q) $3,300 Facility rent ($4,300) $4,300 Insurance ($2,300) $2,300 Miscellaneous ($680 + $0...

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Chapter 9, Problem 2E

To determine

Variance: A variance is the difference between the actual results and expected result from the budget of a company.

The activity variance

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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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Variance: A variance is the difference between the actual results and expected result from the budget of a company. The activity variance

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Variance: A variance is the difference between the actual results and expected result from the budget of a company. The activity variance

Chapter 9 Solutions

Variance: A variance is the difference between the actual results and expected result from the budget of a company.

The activity variance