Explore BrainMass

Explore BrainMass

    Variances

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

    Please consider the following data for the Monarch Escrow Company:?

    Master Budget Data:
    Sales, 2,500 clients at $35 each.
    Variable Costs, $25 per client.
    Total Fixed Costs - $15,000.

    Actual Results at Actual Prices:
    Sales, 3,000 clients at $36 per clients.
    Total Variable Costs - $80,000.
    Total Fixed Costs - $15,750.

    Calculate:
    a) The Actual (Net) Income
    b) The Flexible Budget Income for the Actual Sales Activity
    c) The Total Master Budget Variances
    d) The Total Flexible Budget Variances
    e) The Total Sales Activity Variances.

    Please make sure to identify the variances as Favorable or Unfavorable.

    © BrainMass Inc. brainmass.com March 4, 2021, 5:54 pm ad1c9bdddf
    https://brainmass.com/business/budgets/variances-17477

    Solution Summary

    Calculates net income, flexible budget income for the actual sales activity, total master budget variances, total flexible budget variances, total sales activity variances.

    $2.49

    ADVERTISEMENT