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Home Q & A Board Other Fields Homework Help Business Management
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seosve24 seosve24
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7 years ago
The static​ budget, at the beginning of the​ month, for Redwyne Company​ follows:
Static​ budget:
Sales​ volume: 2,000​ units; Sales​ price: $50.00 per unit
Variable​ costs: $14.00 per​ unit; Fixed​ costs: $25,000 per month
Operating​ income: $47,000
Actual​ results, at the end of the​ month, follows:
Actual​ results:
Sales​ volume: 1,900​ units; Sales​ price: $58.50 per unit
Variable​ costs: $16.00 per​ unit; Fixed​ costs: $33,000 per month
Operating​ income: $47,750
Calculate the flexible budget variance for variable costs.
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#1
Educator
7 years ago
I found a similar question and the way to answer it is shown below (question in attachment):

The flexible budget variance for variable costs=($14-$16.50)*1,800=$4,500 U

Also, refer to: https://biology-forums.com/index.php?topic=468290.0
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