Brabham Enterprises manufactures tires for the Formula 1 motor racing circuit. For August it budgeted...
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Accounting
Brabham Enterprises manufactures tires for the Formula 1 motor racing circuit. For August it budgeted to manufacture and sell 3,000 tires at a variable cost of $75 per tire and total fixed costs of $50,000. The budgeted selling price was $105 per tire. Actual results in August were 2,800 tires manufactured and sold at a selling price of $110 per tire. The actual total variable costs were $229,600 and the actual total fixed costs were $52,000.
Show the Static Budget using the contribution margin style format.
Show the Actual results using the contribution margin style format.
Compute the flexible-budget variance (and label it as F or U) for revenue.
Compute the flexible-budget variance (and label it as F or U) for variable costs.
Compute the sales-volume variance (and label it as F or U) for contribution margin.
Compute the sales-volume variance (and label it as F or U) for fixed costs.
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