Explore BrainMass

# Static and Flexible Budgets, Variances

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Static and flexible budgets, variances, information quality The photocopying department in a community college has budgeted monthly costs at \$40,000 per month plus \$7 per student. Normally 800 students are enrolled. During January there were 730 students (which is within the relevant range). At the end of the month, actual fixed costs were \$42,000, and variable costs were \$3,650.

Please address the following:
A. Develop a static budget for photocopying costs based on 800 students.
B. Calculate the January static budget variance for fixed and variable photocopying costs.
C. Develop a flexible budget for the actual volume of students in January.
D. Calculate the January flexible budget variance for fixed and variable photocopying costs.
E. Which variance informationâ€”part (B) or (D)â€”is of higher quality? Explain.

Â© BrainMass Inc. brainmass.com November 30, 2021, 6:58 am ad1c9bdddf
https://brainmass.com/business/budgets/static-flexible-budgets-variances-600719

#### Solution Summary

Your tutorial shows you in columnar format the two variances. Click in cells to see how computations were done. A few sentences explains which variance is highest quality.

\$2.49