60.1K

Verified Solution

Link Copied!

Managerial accounting 8th edition 9-23 using exhibit 9-2/6 for FAB corp

IN BUSINESS eting standpoint, the companies are trying to make their labor costs o sales and customer traffic. From a legal standpoint, the attormey gen wthis compensation scheme leaves employees "too limtle time to make arrange hs let alone to find an alternative source of income to compensate for Retailers Under Fire for Work SchedulesThe Wall Street Joumol, Aprs 13 2015 FLEXIBLE BUDGET VARIANCES budget based on the actual level of activity in Exhibit 9-5 shows on excall that the flexible scall ha ve happened given the actual level of activity. Therefore, Victoria's nex wls ened to what should have happened. Her work is shown in Exhabit 9-6 LEARNING OBJECTIVE 9-2 pre actual results to the flexible budget-in essence comparing what Calculate and interpret revenue and spending variances Revenue Variances first on revenue, the actual revenue totaled $194.200. However, the flexible bud- that, given the actual level of activity. revenue should have been $198,000. y, revenue was $3,800 less than it should have been, given the actual num- ef dliente-visits for the month. This discrepancy is labeled as a $3.s00 U (unfavor- and is called a revenue variance. A revenue variance is the difference the actual total revenue and what the total revenue should have been, given the Rick's Hairstyling Revenue and Spending Varlances For the Month Ended March 31 EXHIBIT 9-6 Revenue and Spending Variances from Comparing Actual Results to the Flexible Budget and Actual Flexible Spending ResultsBudget Variances 1,100 1.100 Clent-visits Revenue $180.00q). $194200 5195000 530 106.900 105,700 1.200 U Wiages and salaries (565,000+$37.00a), 1,620 1,650 30 F 6,870 4510 2.360 U 1,550 Hairstyling supplies ($1.50q)... 1610 60 Rent ($28,500) Lisblity insurance ($2,800) Employee health insurance ($21,300) Macelaneous ($ 1.200+s0.20).. 28,500 28.500 22,600 21,300 1,300 U 72,970167.490 5.480 U 2,800 2,800 0 2.130 1.420 710 U expense Net operating income The revenue variance is labeled favorable (unfavorable) when the actual revenue is peater than (less than) the flexible budget. The expense variances are irtavorablej when the actual expense is less than (greater than) the flexible budget 39)

Answer & Explanation Solved by verified expert

See Answer