Chapter 8
Chapter 8
Chapter 8
Chapter 8
Learning
Objective 1
Learning
Objective 2
Learning
Objective 4
Evaluation of Financial
Performance
Actual results may differ from
the master budget because...
Flexib
Actua
le
l
Salesbudge
resul Flexiblet for Activity Stati
ts at budget
c
actua variance actual Variance
Budg
sales
s
l
(4) =
activit
activi
et
(2) =
(3)(5)
y
ty
(1)-(3)
7,000
7,000
2,000U (5)9,000
level
(3)
$217,000
$217,000
$62,000 U $279,000
(1)
ble costs
158,200
5,670 U
152,600
43,600 F 196
ibution margin $ 58,730 $ 5,670 U
$ 64,400
$18,400 U $ 82
costs
70,300
300 U
70,000
70,000
ating income
$ (11,570) $5,970 U
$(5,600)
$18,400 U $ 1
Learning
Objective 5
Flexible-Budget Variances
$5,970 Unfavorable
Flexible
budget
$(5,600)
Flexible-budget variances
Sales-Activity Variances
Actual
otal sales - activity variance
= sales unit Master budgeted sales units
Maste
r
budg
et
Activity-level variances
The End
End of Chapter 8