Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $279,000. During June, the company produced and sold 11,700 units and incurred actual variable costs of $360,000 and actual fixed costs of $294,000. Actual sales for June were $975,00O. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance) XION CO. Flexible Budget Report For Month Ended June 30 Flexible Budget Actual Results Variances Fav./Unf.
Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $279,000. During June, the company produced and sold 11,700 units and incurred actual variable costs of $360,000 and actual fixed costs of $294,000. Actual sales for June were $975,00O. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance) XION CO. Flexible Budget Report For Month Ended June 30 Flexible Budget Actual Results Variances Fav./Unf.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 19E: The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month....
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $279,000. During June, the
company produced and sold 11,700 units and incurred actual variable costs of $360,000 and actual fixed costs of $294,000. Actual
sales for June were $975,000.
Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately.
(Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
XION CO.
Flexible Budget Report
For Month Ended June 30
Flexible Budget
Actual Results
Variances
Fav./Unf.
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