Flexible Budgets
Smith Wholesale’s budgeted sales price is $40 per unit for a budgeted sales volume of 5,000 units. The actual performance was 5,500 units at an average sales price of $39.75. The total dollar amount of the flexible budget sales variance is a favorable variance of $.
Smith Wholesale’s budgeted sales price is $40 per unit for a budgeted sales volume of 5,000 units. The actual performance was 5,500 units at an average sales price of $39.75. The dollar amount of sales variance to the difference in actual and budgeted volume is a favorable variance of $.
McCarver Roofing's budgeted manufacturing costs for 22,000 squares of shingles are the following:
Fixed manufacturing costs is $15,000
Variable manufacturing costs $20 per square
McCarver produced 20,000 squares of shingles during October. How much is budgeted for total manufacturing costs in October?
One disadvantage of a static budget is the following: (Choose 2)
Variable costs are not adjusted for the actual sales volume.
Individual fixed costs are not identified.
Variances are not shown.
The sales variance does not distinguish between the price variance and the volume variance.
None of the answers are correct
One disadvantage of a static budget is the following: (Choose 2)
Variances are not shown.
Individual fixed costs are not identified.
It assumes the actual sales activity will be the same as the budgeted activity.
Variable costs are not adjusted for the actual sales volume.
None of the answers are correct
If costs do not change with changes in activity level, these costs can be best described as costs.
A budget with only one level of activity is a budget.
An advantage of a flexible budget is the following: (Choose 2)
Total costs will remain the same regardless of the level of activity.
Variable costs are adjusted for difference levels of activity.
Mixed costs can be more easily separated with this method of budgeting.
The company will get a more accurate picture of the performance of the
Smith Wholesale’s budgeted sales price is $40 per unit for a budgeted sales volume of 5,000 units. The actual performance was 5,500 units at an average sales price of $39.75. The dollar amount of sales variance to the difference in actual and budgeted volume is a favorable variance of $.
McCarver Roofing's budgeted manufacturing costs for 22,000 squares of shingles are the following:
Fixed manufacturing costs is $15,000
Variable manufacturing costs $20 per square
McCarver produced 20,000 squares of shingles during October. How much is budgeted for total manufacturing costs in October?
One disadvantage of a static budget is the following: (Choose 2)
Variable costs are not adjusted for the actual sales volume.
Individual fixed costs are not identified.
Variances are not shown.
The sales variance does not distinguish between the price variance and the volume variance.
None of the answers are correct
One disadvantage of a static budget is the following: (Choose 2)
Variances are not shown.
Individual fixed costs are not identified.
It assumes the actual sales activity will be the same as the budgeted activity.
Variable costs are not adjusted for the actual sales volume.
None of the answers are correct
If costs do not change with changes in activity level, these costs can be best described as costs.
A budget with only one level of activity is a budget.
An advantage of a flexible budget is the following: (Choose 2)
Total costs will remain the same regardless of the level of activity.
Variable costs are adjusted for difference levels of activity.
Mixed costs can be more easily separated with this method of budgeting.
The company will get a more accurate picture of the performance of the