Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the budgeted and actual results of powers inc. for

The budgeted and actual results of Powers Inc. for the month of...

80.2K

Verified Solution

Question

Accounting

The budgeted and actual results of Powers Inc. for the month of June were as follows. The company uses a marginal costing system. There were no opening and closing inventories.
Static Budget
Actual Results
Sales & Production
2,500 units
2,000 units
$
$
$
$
Sales
60,000
46,000
Direct materials
10,000
9,500
Direct labour
12,500
9,000
Maintenance
5,000
4,500
Depreciation
5,000
3,500
Rent & Rates
7,000
6,000
Total Costs
39,500
32,500
Profit/Loss
20,500
13,500
The following information relates to cost behaviour: Maintenance is a variable cost; Depreciation, and Rent and Rates are fixed costs.
What are the Flexible Budgets Profit/Loss, and the related Variance when compared to the Actual Results Profit?
Question 20Select one:
A.
$13,500 and $500(F)
B.
$13,500 and $500(A)
C.
$14,000 and $500(A)
D.
$14,000 and $3,500(F)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Flagstaff Company has budgeted production units of 8,000 forJuly and 8,200 for August. The...

Biology
1.2K views

Check the 3 correct answers A nucleotide of DNA has the following components Ophosphate Othymine...

Physics
1.2K views

Equal amount of same gas in two similar cylinders A and B compressed to same...

Basic Math
1.2K views

Multiply using the rectangular area model 3 4 1 7 1 1 20

Algebra
1.2K views

8 Hunter took out a 3 500 pay for some business supplies He will repay...

Algebra
1.2K views

Let V be a vector space and S = {(2, -1, 3), (1, 2, 1))....

Accounting
1.2K views

Jay, Incorporated, a party rental business, completed its third year of operations on December 31....

Accounting
1.2K views

****** Scenario 1: Retirement Account Movements Wages: Michael ($78,000), Jessica...

Accounting
1.2K views

On January 1, the first day of its fiscal year, Pretender Company issued $18,500,000 of...

Accounting
1.2K views

Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no...

Accounting
1.2K views

What does the mathematically determined line produced by a regression program represent? a. The...

Accounting
1.2K views

Please explain steps. Thank you!! 1. Your company plans to buy a new machine...