Question

Which of the following would not appear on a flexible budget performance report as shown in...

Which of the following would not appear on a flexible budget performance report as shown in the text? A. Variable costs. B. Mixed costs. C. A flexible budget adjusted to the actual level of activity. D. The previous year's actual costs.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

D. The previous year's actual costs.

There are two types of budget-Static and Flexible.In case of Static budget all the componenets remain same irrespective of change in volume or level of activity.But, in case of flexible budget, it adjust the component as per change in volume or level of activity.

So when we examine flexible budget report with actual performance report for any year,components like variable costs, semi variable costs etc. of budget prepared at inception of current year are changed as per the change in volume and then compared with the actual costs of current year . But , it does not consider last year's actual cost.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In a flexible budget, __________ are adjusted to reflect actual performance. Select one: a. fixed costs...
In a flexible budget, __________ are adjusted to reflect actual performance. Select one: a. fixed costs b. variable costs c. revenues d. All of the above. e. Only b) and c).
Exercise 21-3 Preparing a flexible budget performance report LO P1 Solitaire Company’s fixed budget performance report...
Exercise 21-3 Preparing a flexible budget performance report LO P1 Solitaire Company’s fixed budget performance report for June follows. The $300,000 budgeted expenses include $272,000 variable expenses and $28,000 fixed expenses. Actual expenses include $36,500 fixed expenses. Fixed Budget Actual Results Variances Sales (in units) 8,000 10,400 Sales (in dollars) $ 400,000 $ 520,000 $ 120,000 F Total expenses 300,000 364,000 64,000 U Income from operations $ 100,000 $ 156,000 $ 56,000 F Prepare a flexible budget performance report showing...
Birkner Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a...
Birkner Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $30,444 and that the spending variance for indirect materials cost was $8,142 favorable. During that month, the company worked 17,700 machine-hours. Budgeted activity for the month had been 18,200 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to: Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,400 machine-hours Variable...
True Or False 1- Fixed costs should not be included in a flexible budget because they...
True Or False 1- Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes. (       ) 2-To help assess how well a manager has controlled costs, actual costs should be compared to what the costs should have been for the actual level of activity. (       ) 3-The activity variance for revenue is favorable if the actual revenue for the period exceeds the revenue in the static planning budget. (      ...
Exercise 21-4 Preparing a flexible budget performance report LO P1 Xion Co. budgets a selling price...
Exercise 21-4 Preparing a flexible budget performance report LO P1 Xion Co. budgets a selling price of $81 per unit, variable costs of $34 per unit, and total fixed costs of $280,000. During June, the company produced and sold 11,800 units and incurred actual variable costs of $361,000 and actual fixed costs of $295,000. Actual sales for June were $985,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the...
Exercise 8-3 Preparing a flexible budget performance report LO P1 Solitaire Company’s fixed budget performance report...
Exercise 8-3 Preparing a flexible budget performance report LO P1 Solitaire Company’s fixed budget performance report for June follows. The $330,000 budgeted expenses include $264,000 variable expenses and $66,000 fixed expenses. Actual expenses include $75,000 fixed expenses. Fixed Budget Actual Results Variances Sales (in units) 8,800 11,200 Sales (in dollars) $ 440,000 $ 560,000 $ 120,000 F Total expenses 330,000 392,000 62,000 U Income from operations $ 110,000 $ 168,000 $ 58,000 F Prepare a flexible budget performance report showing...
Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget...
Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: Four welding units, with a lease cost of $14,000 per year per unit Six welding employees each paid a salary of $55,000 per year (A total of 12,000 welding hours are supplied by the six workers.) Welding supplies: $400 per job Welding hours: 4 hours used per job During the year, the...
1. Prepare a flexible budget performance report for JulyJuly. 2. What was the effect on New...
1. Prepare a flexible budget performance report for JulyJuly. 2. What was the effect on New BostonNew Boston​'s operating income of selling 2 comma 0002,000 units more than the static budget level of​ sales? 3. What is New BostonNew Boston​'s static budget variance for operating​ income? 4. Explain why the flexible budget performance report provides more useful information to New BostonNew Boston​'s managers than the simple static budget variance. What insights can New BostonNew Boston​'s managers draw from this performance​...
Ray Company provided the following excerpts from its Production Department’s flexible budget performance report. Required: Complete...
Ray Company provided the following excerpts from its Production Department’s flexible budget performance report. Required: Complete the Production Department’s Flexible Budget Performance Report. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round "rate per hour" answers to 2 decimal places.) Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Results Spending Variances Flexible Budget...
Ray Company provided the following excerpts from its Production Department’s flexible budget performance report. (Round "rate...
Ray Company provided the following excerpts from its Production Department’s flexible budget performance report. (Round "rate per hour" answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Required: Complete the Production Department’s Flexible Budget Performance Report. Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Results Spending Variances Flexible Budget...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT