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    static budget variance, flexible budget variance

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    Your company uses a standard costing system.
    At the beginning of the month, you budget to produce and sell 100 items.
    Actual units produced are 120.
    Standards for direct material are 4 lbs per unit at a standard price of $3 per pound.
    Actual material purchased and used was 450 lbs.
    Actual price paid was $2.90 lb.
    All units produced were sold.
    Consider direct material cost and calculate the following:
    Static budget Variance
    Flexible budget variance
    sales volume variance
    efficiency variance
    price variance

    Label each variance with its name and favorable or not.

    © BrainMass Inc. brainmass.com June 4, 2020, 1:21 am ad1c9bdddf
    https://brainmass.com/business/budgets/static-budget-variance-flexible-budget-variance-394344

    Solution Preview

    Your response is in Excel to give you a template for future problems. The formulas are in the cells ...

    Solution Summary

    Your response is in Excel to give you a template for future problems. The formulas are in the cells so you can see what I used to get all the amounts. The sales price was missing so you need to provide that in the indicated cell and the sales volume variance will compute automatically.

    $2.19

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