Reynolds Construction Materials Company has a sales office that sells concrete culvert pipes to property developers. The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided. Revenue Center Responsibility Report Actual Sales Revenue Variance $31,600 Flexible Budget Sales Volume Variance Product Iype 40 inch 36 inch long Flexible Budget $30,000 42,100 Static Budget $40,600 33,100 30,000 U/F U/F 40,150 36,200 19,000 36 inch short 33,100 32 inch 20,900 28,000 What is the flexible budget variance for the 40 – inch pipe? O A. $10,600 F O B. $1,600 F OC. $1,600 U O D. $10,600 U
Reynolds Construction Materials Company has a sales office that sells concrete culvert pipes to property developers. The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided. Revenue Center Responsibility Report Actual Sales Revenue Variance $31,600 Flexible Budget Sales Volume Variance Product Iype 40 inch 36 inch long Flexible Budget $30,000 42,100 Static Budget $40,600 33,100 30,000 U/F U/F 40,150 36,200 19,000 36 inch short 33,100 32 inch 20,900 28,000 What is the flexible budget variance for the 40 – inch pipe? O A. $10,600 F O B. $1,600 F OC. $1,600 U O D. $10,600 U
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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What is the flexible
Transcribed Image Text:Reynolds Construction Materials Company has a sales office that sells concrete culvert pipes to property developers. The sales office is a revenue center and
prepares a monthly responsibility report. The following information is provided.
Revenue Center Responsibility Report
Actual
Sales
Revenue
$31,600
40,150
36,200
19,000
Product
Туре
Flexible
Budget
Variance
Sales
Volume
Variance
Flexible
Budget
$30,000
42,100
33,100
20,900
Static
Budget
$40,600
33,100
30,000
28,000
U/F
U/F
40 inch
36 inch long
36 inch short
32 inch
What is the flexible budget variance for the 40 – inch pipe?
O A. $10,600 F
O B. $1,600 F
OC. $1,600 U
O D. $10,600 U
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