60.1K

Verified Solution

Link Copied!

Course Title: Managerial Accounting and Legal Aspects of Business Competency Assessment Title: Flexible Budget Assignment Directions Review the scenario and complete the activity below. This scenario can also be found in the "Problems - Series A" section 8-19A of Ch. 8, "Performance Evaluation," of Fundamental Managerial Accounting Concepts. Use Excel@ showing all work and formulas - to complete the following: Prepare a flexible budget. Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the flexible budget. Compute flexible budget variances by comparing the flexible budget with the actual results. Mr. Snow was extremely upset with the budget deficit. He immediately called you, the tr

Side By Side Comparison
Details	Master Budget	Flexible Budget	Actual Costs	Flexible Variance
Allocated Funds	$25,290.00	$25,290.00	$25,290.00	$0.00
Expenses:
Variable Expenses
Meals	$20,300.00	$23,490.00	$25,110.00	-$1,620.00
Postage	$1,470.00	$1,960.00	$1,960.00	$0.00
Fixed Expense
Facility	$1,000.00	$1,500.00	$1,500.00	$0.00
Printing	$950.00	$950.00	$950.00	$0.00
Decorations	$840.00	$840.00	$840.00	$0.00
Speakers's Gift	$130.00	$130.00	$130.00	$0.00
Publicity	$600.00	$600.00	$600.00	$0.00
Total Expense	$25,290.00	$29,470.00	$31,090.00	-$1,620.00
Surplus (Deficit)	$0.00	-$4,180.00	-$5,800.00	$1,620.00
Details	Budget	Flexible Budget	Variance
Allocated Funds	25290	25290	=B2-C2
Expenses:
Variable Expenses
Meals	20300	=1620*14.5	=B5-C5
Postage	1470	=4000*.49	=B6-C6
Fixed Expense
Facility	1000	1500	=B8-C8
Printing	950	950	=B9-C9
Decorations	840	840	=B10-C10
Speakers's Gift	130	130	=B11-C11
Publicity	600	600	=B12-C12
Total Expense	=Sum(B5:12)	=sum(C5:C12)	=sum(D5:D12)
Surplus (Deficit)	=B2-B13	=C2-C13	=D2-D13

Answer & Explanation Solved by verified expert

See Answer