which of the following is the formula flexible budget course hero

by Anahi Smith Published 2 years ago Updated 1 year ago 5 min read

How do you calculate a flexible budget?

The company computes the equation for flexible-budget revenues by multiplying the budgeted sales price per unit by the number of units sold. 3. The company calculates its flexible budget for total costs. The equation for flexible-budget costs is flexible-budget variable costs added to the flexible-budget fixed costs. This would be an appropriate time for the company to reevaluate …

What is the direct labor cost in a flexible budget?

Sep 26, 2015 · See Page 1. Problem 3: Venus Company has developed the following flexible budget formula for annual indirect labor cost: Total annual cost = $12,000 + $.25 / unit Operating budgets for the current month are based on 5,000 units. Indirect labor costsincluded in this monthly planning budget are Problem 4: Compute the total job cost for each of the following …

What is the difference between a static and flexible budget?

Alma Corporation has developed the following flexible budget formula for annual indirect labor costs: Total Cost = P180,000 + P4.50 per machine hr. Operating budgets for the current month are based upon 20,000 machine hours of planned machine time. Indirect labor costs included in this monthly planning budget are: a. P90,000 c. P180,000 b. P105,000 d.

What is flexible budget variance and why is it important?

Flexible budget formula = $ 6.10 per unit Fixed cost $ 52,000 c. Actual cost Budget for 21,600 units Variance Direct material $ 33,000 32,400 ($1.50 x 21,600) $ 600 U Direct labour 25,100 23,760 ($1.10 x 21,600) $ 1,340 U Factory Utilities 64,900 64,800 ($3.00 x 21,600) $ 100 U Production Supervisor 12,500 12,000 $ 500 U Sales Promotion 11,300 10,800 ($0.50 x 21,600) …

Which of the following is the formula flexible budget?

The basic formula flexible budget is: Total budgeted monthly overhead cost = (Budgeted variable-overhead per activity unit x Total activity units) + Budgeted fixed-overhead cost per month.

What is the formula of developing flexible budget?

Dividing total cost of each category by the budgeted production level results in variable cost per unit of $0.50 for indirect materials, $0.40 for indirect labor, and $0.40 for utilities.</p>\n<p>To compute the value of the flexible budget, multiply the variable cost per unit by the actual production volume.

What is included in a flexible budget?

A flexible budget adjusts to changes in actual revenue levels. Actual revenues or other activity measures are entered into the flexible budget once an accounting period has been completed, and it generates a budget that is specific to the inputs. The budget is then compared to actual expenses for control purposes.Mar 3, 2022

What is a flexible budget and how is it prepared?

A flexible budget is prepared after making an intelligent classification of all expenses between fixed, semi-variables and variable because the usefulness of such a budget depends upon the accuracy with which the expenses can be classified.

How do you calculate flexible budget variance?

For example, a flexible budget model is designed where the price per unit is expected to be $100. In the most recent month, 800 units are sold and the actual price per unit sold is $102. This means there is a favorable flexible budget variance related to revenue of $1,600 (calculated as 800 units x $2 per unit).Sep 19, 2021

What is a flexible budget Mcq?

A budget that will be changed at the end of every month in order to reflect the actual costs of a department.

Which of the following is true of flexible budget?

The correct answer is d. It calculates total variable cost by multiplying actual units by budgeted variable cost per unit.

What is flexible budget Mention the steps involved in preparing flexible budget?

Steps involved in flexible budgeting

1. Decide a range of activity for which the budget is to be prepared. 2. Determine the cost behavior pattern (Fixed, Variable and Semi-variable) for each element of costs that are included in the flexible budget.