Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 4,000 units. The following variances were observed: Actual Results Variances Units Sales $135,000 $27,000 Favorable Variable Expenses 64,900 12,900 Unfavorable Fixed Expenses 64,200 200 Unfavorable Net Income (loss) $5,900 $13,900 Unfavorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 5,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300).
Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 4,000 units. The following variances were observed: Actual Results Variances Units Sales $135,000 $27,000 Favorable Variable Expenses 64,900 12,900 Unfavorable Fixed Expenses 64,200 200 Unfavorable Net Income (loss) $5,900 $13,900 Unfavorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 5,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300).
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter13: Budgeting And Standard Costs
Section: Chapter Questions
Problem 21CDQ: How are standards used in budgetary performance evaluation?
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Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 4,000 units. The following variances were observed:
| Actual Results | Variances | ||
| Units | |||
| Sales | $135,000 | $27,000 | Favorable |
| Variable Expenses | 64,900 | 12,900 | Unfavorable |
| Fixed Expenses | 64,200 | 200 | Unfavorable |
| Net Income (loss) | $5,900 | $13,900 |
Unfavorable |
Determine the static budget and use the information to prepare a flexible budget and analysis for the 5,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300).
Transcribed Image Text:Static budget
Flexible budget
Actual Results
Variances
Units
Sales
Variable Expenses
Fixed Expenses
Net Income (Loss)
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