The following partial budget versus actual report was prepared for Otis the Great, a manufacturer of dog chew toys disguised as "real life" items such as Crocs and bags of Goldfish: sales revenue variable expenses fixed expenses actual $102,000 ? $21,000 flexible budget variance ? $3,000 F ? flexible budget $108,000 $60,000 volume variance $18,000 F ? ? master budget ? The actual units sold were 60,000. The actual unit sales price was $0.10 lower than the budgeted sales price.. The volume variance for fixed expenses equaled $0. The budgeted unit variable expense was $1.00. The flexible budget fixed expenses equaled $21.000. $50,000 $25,000 Assuming the master budget was prepared for an activity level of 50,000 units and all products have the sales price and unit variable cost, which of the following statements is incorrect?

The following partial budget versus actual report was prepared for Otis the Great, a manufacturer of dog chew toys disguised as "real life" items such as Crocs and bags of Goldfish: sales revenue variable expenses fixed expenses actual $102,000 ? $21,000 flexible budget variance ? $3,000 F ? flexible budget $108,000 $60,000 volume variance $18,000 F ? ? master budget ? The actual units sold were 60,000. The actual unit sales price was $0.10 lower than the budgeted sales price.. The volume variance for fixed expenses equaled $0. The budgeted unit variable expense was $1.00. The flexible budget fixed expenses equaled $21.000. $50,000 $25,000 Assuming the master budget was prepared for an activity level of 50,000 units and all products have the sales price and unit variable cost, which of the following statements is incorrect?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 7CE: Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced...

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