Top Posters
Since Sunday
8
5
z
4
n
4
t
4
3
k
3
x
3
r
3
m
3
j
3
c
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
Deprecated Deprecated
wrote...
Go to Answer
Posts: 2784
Rep: 104 0
8 years ago
The California Fitness Company completed the flexible budget analysis for the second quarter, which is given below.

   Actual Results   Flexible Budget Variance      Flexible Budget   Sales Volume Variance      Static Budget
Units   12,860   0      12,860   1,060   F   11,800
Sales Revenue   $62,720   $1,290   U   $64,010   $4,010   F   $60,000
Variable Costs   27,620   720   U   26,900   $1,700   U   25,200
Contribution Margin   $35,100   $2,010   U   $37,110   $2,310   F   $34,800
Fixed Costs   34,250   250   U   34,000   $0      34,000
Operating Income/(loss)   $850   $2,260   U   $3,110   $2,310   F   $800

Which of the following statements would be a correct analysis of the flexible budget variance for variable costs?
A) increase in fixed costs
B) decrease in sales price per unit
C) increase in variable cost per unit
D) increase in sales volume
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
Read 120 times
3 Replies
Replies
Answer verified by a subject expert
Mrgo-breedMrgo-breed
wrote...
#1
Top Poster
Posts: 2227
Rep: 276 0
8 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Deprecated Author
wrote...
#2
7 years ago
This was certainly a tough question, loving the expertise
wrote...
#3
7 years ago
Happy to help Smiling Face with Open Mouth
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  538 People Browsing
 117 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 95
  
 239
  
 65
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 484
Previous poll results: Which is the best fuel for late night cramming?