QUESTION 1 The actual information pertains to the month of August. As part of...
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Accounting
QUESTION 1
The actual information pertains to the month of August. As part of the budgeting process, Alloway's Fencing Company developed the following static budget for August. Alloway is in the process of preparing the flexible budget and understanding the results.
Actual Results
Flexible budget
Static Budget
Sales Volume (in units)
10,000
13,000
Sales Revenue
$1,100,000
$1,201,200
variable Costs
512,000
600,600
Contribution Margin
588,000
600,600
Fixed Costs
458,000
450,000
operating profit
130,000
150,600
What is the flexible variance for revenue?
4 points
QUESTION 2
The actual information pertains to the month of August. As part of the budgeting process, Alloway's Fencing Company developed the following static budget for August. Alloway is in the process of preparing the flexible budget and understanding the results.
Actual Results
Flexible budget
Static Budget
Sales Volume (in units)
10,000
12,000
Sales Revenue
$1,000,000
$1,201,200
variable Costs
420,000
600,600
Contribution Margin
580,000
600,600
Fixed Costs
450,000
450,000
operating profit
130,000
150,600
What is the flexible variance for variable costs?
Answer & Explanation
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