Notes on Flexible Budgets and Budgeting

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

Q2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) was allocated to planned production? What was the actual per unit cost of production and shipping?

let us consider what the total cost of living and attending a four year private

A flexible budget can be used to forecast a range of production possibilities, or it can be used to assess how well the company met the budget plan based

The location of the campus I will be attending is in McAllen, TX. The percentage of applications submitted is 100%. The diversity of the student body is the foreign population is 13% as of 2010.The cost of living at STC would be an estimate of $11,400 a year, because of the dorm rental and for personal expenses. The student teacher ratio at STC is 24:1.

The impact of higher tuition rates on students has been significant in that the burden of paying for college has fallen increasingly on them. Furthermore, it is not only the cost of tuition that is rising. Students are also faced with rising costs of housing, textbooks, and other essential expenses associated with attending college. From December 2001 to November 2010,

18. Within the same budget performance report, it is impossible to have both favorable and unfavorable variances.

2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.

In this case, the teacher should be considered as a fixed cost since the cost is not directly traced to each student. In other words, the cost will not change within a relative small range of students; for instance, there is no difference between teaching 10 students and 11 students.

I feel like Cindy should include books and supplies expense because each class require different books and students will need paper, pen, pencils binders and notebooks. Classes and teacher expenses because we pay to go to class and pay for professors to teacher us. Utilities expense for having a class to sit in and lights. Cindy should also include on boarding expense for students staying on campus. Meal plans expense should be include because some colleges require students to have a meal. Farthermore students will spent a good amount of their day on campus they will buy food on campus.

Static Budget is a budget that never changes, even if the activity level changes. However, the Flexible Budget changes based on actual activity. The flexible budget is more accurate than the static budget because budget amounts change for changes in activity.

In response to one of my discussion posts Dr. Low pointed out that in regards to the physical plant and facilities, the oversight of many budgeters is issues relate to ongoing maintenance and operations. Often time addition expenditures associated with capital projects/budgets are not factored in. When the price tag gets too hefty the damage is passed on to the students as in the case of Union Cooper. More specifically, Barr and McClellan (2001) notes that capital budget encompass a myriad of expenses including but not limited to construction, renovation, designing, architectural, and engineering services, liability insurance, carpeting, light fixtures, and even point? However, it is important to have a modest reserve within reach for the

10. My total variable costs look something like this. The one highlighted in green color.

then create a formula similar to this .53 = 530,000 - 1,000,000 as you can see, Dean 's operating income is $530,000 (Net sales – all operating expenses). According to the formula used, Dean’s operating margin is .53. By taking that away from 110 this means that 57 cents on every dollar of sales are used to pay for variable costs. Only 53 cents remains to cover all non-operating expenses or fixed costs.

Total Fixed Cost = $59,000 − ( $12 × 3,000 ) = $38,000 − ( $12 × 1,250 ) = $23,000