Required information [The following information applies to the questions displayed below] The fixed budget for 20,000 units of production shows sales of $400,000 variable costs of $80,000, and fixed costs of $150,000 The company's actual sales were 26,000 units at $480,000 Actual variable costs were $112.000 and actual fixed costs were $145,000 Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
Required information [The following information applies to the questions displayed below] The fixed budget for 20,000 units of production shows sales of $400,000 variable costs of $80,000, and fixed costs of $150,000 The company's actual sales were 26,000 units at $480,000 Actual variable costs were $112.000 and actual fixed costs were $145,000 Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 20MCQ: A firm comparing the actual variable costs of producing 10,000 units with the total variable costs...
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![Required information
[The following information applies to the questions displayed below]
The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000, and fixed costs of
$150,000.
The company's actual sales were 26,000 units at $480,000. Actual variable costs were $112.000 and actual fixed costs were $145,000.
Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each
ce by selecting favorable, unfavorable, or no variance.)
Sales
Variable costs
Contribution margin
Fixed costs
Income
Flexible Budget Performance Report
Flexible Budget Actual Results
$
0
0 $
Variances
Favorable/
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Favorable
Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda8afccc-2c8f-4a89-92d0-48d32de2bd09%2F88f42cdc-13a6-439d-b1dd-d06e49d93e26%2Fbtlcif_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000, and fixed costs of
$150,000.
The company's actual sales were 26,000 units at $480,000. Actual variable costs were $112.000 and actual fixed costs were $145,000.
Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each
ce by selecting favorable, unfavorable, or no variance.)
Sales
Variable costs
Contribution margin
Fixed costs
Income
Flexible Budget Performance Report
Flexible Budget Actual Results
$
0
0 $
Variances
Favorable/
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Favorable
Unfavorable
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