Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The...

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Accounting

Static and Flexible Budgets
Graham Corporation used the following data to evaluate its currentoperating system. The company sells items for $10 each and used abudgeted selling price of $10 per unit.
Actual Budgeted
Units sold 991,000 1,000,000
Variable costs 1,280,000 1,500,000
Fixed costs 955,000 905,000
a. Prepare the actual income statement, flexible budget, andstatic budget.
Do not use negative signs with any of your answers below.
Actual Results Flexible Budget Static Budget
Units sold Answer Answer Answer
Revenues Answer Answer Answer
Variable costs Answer Answer Answer
Contribution margin Answer Answer Answer
Fixed costs Answer Answer Answer
Operating income Answer Answer Answer
For questions b., c., and d., do not use negative signs withyour answers. Select either U for Unfavorable or F for Favorableusing the drop down box next to each of your variance answers.
b. What is the static-budget variance of revenues?
$Answer
c. What is the flexible budget variance for variable costs?
$Answer
d. What is the flexible budget variance for fixed costs?
$Answer

	Actual	Budgeted
Units sold	991,000	1,000,000
Variable costs	1,280,000	1,500,000
Fixed costs	955,000	905,000

	Actual Results	Flexible Budget	Static Budget
Units sold	Answer	Answer	Answer
Revenues	Answer	Answer	Answer
Variable costs	Answer	Answer	Answer
Contribution margin	Answer	Answer	Answer
Fixed costs	Answer	Answer	Answer
Operating income	Answer	Answer	Answer

Answer & Explanation Solved by verified expert

4.1 Ratings (498 Votes)

aActual resultsFlexible budgetStatic BudgetUnits sold9910009910001000000Revenues9910000991000010000000Variable costs128000014865001500000contribution margin863000084235008500000Fixed See Answer

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