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    Static Budget, Flexible Budget & Variances

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    Engle Manufacturing Company established the following information of prices and costs:

    Sale Price $50 por unidad
    Variable cost of production $32 por unidad
    Fixed costs total of production $100,000
    Fixed costs total of sale and administrative $40,000

    Engle expects that to produce and to sell 15,000 units. The production and the current sales elevated to 16,000 units.

    It required:
    A) Determine the variance of the sales volume, include the variance
    by the sales and the variable costs of production.
    B) To classify the variance in Favorable (F)
    Or Unfavorable (D).

    (a), (b)
    Static Flexible Variance favorable or
    budget budget Unfavorable

    1.Number of
    units
    2.Sales
    3.Variable
    costs of
    manufacture

    © BrainMass Inc. brainmass.com October 9, 2019, 11:14 pm ad1c9bdddf
    https://brainmass.com/business/accounting/static-budget-flexible-budget-variances-249931

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    Solution Summary

    The solution contains the computation of variance between static budget and flexible budget.

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