Homework Help Question & Answers

Flexible Budgets and Variance Analysis

Sinclair and Reid, an accounting firm, has budgeted $200 000 in fixed expenses per month for the tax department. It has also budgeted variable costs of $10 per tax return prepared for supplies, $70 per return for labour, and $20 per return for computer time. The firm expects revenue from tax return preparation to be $600 000, based on 4000 tax returns at $300 each. During the current month, 3700 tax returns were actually prepared, at an average fee of $294 each. Actual variable costs were $18 200 for supplies, $130 000 for labour, and $36 000 for computer time. Actual fixed costs were $200 000.


  1. Prepare a flexible budget for the tax department of Sinclair and Reid for the current month.

  2. Compute the flexible budget variance for Sinclair and Reid.

0 0
Add a comment
Answer #1

Flexible budget and variance analysis

Budgeted variable cost Supplies labor cost Computer time Budgeted Fixed costs 200,000 Revenue per tax return 300 Variance 3,7



answered by: ANURANJAN SARSAM
Add a comment
Know the answer?
Add Answer to:
Flexible Budgets and Variance Analysis
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Exercise 08-4 Preparing a flexible budget performance report LO P1 0.85 points Xion Co. budgets a...

    Exercise 08-4 Preparing a flexible budget performance report LO P1 0.85 points Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $270,000. During June, the company produced and sold 10,800 units and incurred actual variable costs of $351,000 and actual fixed costs of $285,000. Actual sales for June were $885,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately....

  • Flexible budgets and variance analysis Question 1 Candy manufacturing produces boxes of candy that are sold...

    Flexible budgets and variance analysis Question 1 Candy manufacturing produces boxes of candy that are sold all around Sydney stores. The company reveals the following budgetary information relating to its standard direct material and direct labour costs for a box of candy: Direct materials: $4 per kg 2 kg per box = 58 per box Direct labour: $20 per hour 15 minutes per box = $5 per box Management is concerned that staff may have worked sub-optimally in July, and...

  • answer all 37) The sales volume variance is the difference between the 37) Aj expected results...

    answer all 37) The sales volume variance is the difference between the 37) Aj expected results in the flexible budget for the actual units sold and the static budget B) static budget and actual amounts due to differences in sales price C) flexible budget and static budget due to differences in fixed costs D) actual results and the expected results in the flexible budget for the actual units sold 38) 39) The static budget, at the beginning of the month,...

  • Complete the flexible budget variance analysis by filling in the blanks in the partial flexible budget...

    Complete the flexible budget variance analysis by filling in the blanks in the partial flexible budget performance report for 11,000 travel locks for Gianni, Inc. B (Click the icon to view the report) (For variances with a $0 value, make sure to enter "O" in the appropriate cells.) i Data Table Gianni, Inc. Flexible Budget Performance Report (partial) For the Month Ended April 30, 2018 Actual Flexible Budget Results Variance Units 11,000L Sales Revenue S 209,000 Variable Costs 51,900 Contribution...

  • Finesse Company manufactures tablecloths. Sales have grown rapidly over the past two years. As a result,...

    Finesse Company manufactures tablecloths. Sales have grown rapidly over the past two years. As a result, the president has installed a budgetary control system for 2020. The following data were used in developing the master manufacturing overhead budget for the ironing department. The budget is based on an activity index of direct labour hours. Variable Costs Rate per Direct Labour Hour Annual Fixed Costs Indirect labour $0.50 Supervision $45,000 Indirect materials  0.75 Depreciation 20,000 Factory utilities  0.45 Insurance 15,000 Factory...

  • Match each form to the correct definition Terms a. Flexible budget b. Flexible budget variance c....

    Match each form to the correct definition Terms a. Flexible budget b. Flexible budget variance c. Sales volume variance d Static budget e. Variance - Definitions 1. A summarized budget for several levels of volume that separates variable costs from foxed costs 2. A budget prepared for only one level of sales 3. The difference between an actual amount and the budgeted amount 4. The difference arising because the company actually earned more or less revenue, or incurred more or...

  • Xion Co budgets a selling price of $81 per unit, variable costs of $35 per unit,...

    Xion Co budgets a selling price of $81 per unit, variable costs of $35 per unit, and total fixed costs of $281,000. During June, the company produced and sold 11,900 units and incurred actual variable costs of $362,000 and actual fixed costs of $296,000. Actual sales for June were $995,000 Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and...

  • Xion Co. budgets a selling price of $81 per unit, variable costs of $35 per unit,...

    Xion Co. budgets a selling price of $81 per unit, variable costs of $35 per unit, and total fixed costs of $278,000. During June, the company produced and sold 11,600 units and incurred actual variable costs of $359,000 and actual fixed costs of $293,000. Actual sales for June were $965,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and...

  • Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system....

    Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual Budgeted Units sold 400,000 $430,000 Variable costs $1,250,000 $1,500,000 Fixed costs $1.500,000 $1,290,000 a. Prepare the actual income statement, flexible budget, and static budget. Do not use negative signs with any of your answers below. Actual Results Flexible Budget Static Budget Units sold Revenues Variable costs...

  • Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system....

    Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual Budgeted Units sold 685,000 700,000 Variable costs 1,850,000 2,100,000 Fixed costs 1,525,000 1,485,000 a. Prepare the actual income statement, flexible budget, and static budget. Do not use negative signs with any of your answers below. Actual Results Flexible Budget Static Budget Units sold Revenues Variable costs...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.