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Can you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000   Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0      Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000   = $220,000   ii) Cost Variance, Volume Variance and Management Variance    Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000   Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000     iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000   Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000   Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000)      Can you help me interpret these results

Can you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000   Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0      Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000   = $220,000   ii) Cost Variance, Volume Variance and Management Variance    Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000   Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000     iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000   Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000   Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000)      Can you help me interpret these results

Managerial Accounting: The Cornerstone of Business Decision-Making
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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Can you help me interpret these results

i)Revenue Variance, Price, and Volume Variance

Revenue variance = Actual revenues – Static revenues

= $2,200,000 - $1,9800,000

= $220,000

 

Price variance = Actual revenues – Flexible revenues

=$2,2000,000 - $2,200,000

=$0 

 

 

Volume variance = Flexible revenues – Static revenues

=$2,200,000 - $1,980,000  

= $220,000

 

  1. ii) Cost Variance, Volume Variance and Management Variance 

 

Cost variance = Static cost - Actual cost

=$1,350,000 -$1,625,000

= $-275,000

 

Volume = Static cost – Flexible costs

= $1,350,000 - =$1,475,000

= $-125,000

Management variance = Flexible cost- Actual cost

=$2,200,000 - 1,625,000

=$575,000

 

 

iii) Profit Variance

Profit Variance= Actual Profit - Static Profit

= 225,000 - 130,000 = 95,000

 

Revenue Variance = Actual Revenue - Static Revenue

= 2, 200,000 - 1,980,000 = 220,000

 

Cost Variance = Static Cost - Actual Costs

= 1,850,000 - 1,975,000 = (125,000)

 

 

 Can you help me interpret these results

 

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