Budget variance including flexible budget
Not what you're looking for?
Tylon's Hardware uses a flexible budget to develop planning information for its warehouse operations. For 20X9, the company anticipated that it would have 96,000 sales units for 664 customer shipments. Average storage bin usage for various inventories was estimated to be 200 per day. The costs and cost drivers were determined to be as follows:
Item Fixed Variable Cost Driver
Product Handling $10,000.00 $1.25 per 100 units
Storage $3.00 per storage bin
Utilities $1,000.00 $1.50 per 100 units
Shipping Clerks $1,000.00 $1.00 per shipment
Supplies $0.50 per shipment
During the year, the warehouse processed 90,000 units for 600 customer shipments. The workers used 225 storage bins on average each day to sort, store, and process goods for shipment. The actual costs for 20X9 were:
Item Actual Cost
Product handling $10,900
Storage $465
Utilities $2,020
Shipping Clerks $1,400
Supplies $340
1: Determine the 20X9 static budget variances.
2: Determine the 20X9 flexible budget variances
Purchase this Solution
Solution Summary
Static budget
Flexible budget
Static budget variance
Flexible budget variance
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.