Four Flags is a retail department store. On January 1, 2010, Four Flags' accountants used...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Four Flags is a retail department store. On January 1, 2010, Four Flags' accountants used the following data to develop the master budget for Four Flags for 2010: COSTS Fixed Variable (per sales dollar) Cost of Goods Sold $0 (Fixed) $0.560 (Variable) Selling and Promotion Expense $210,000 (F) $0.080 (V) Building Occupancy Expense $190,000 (F) $0.010 (v) Buying Expense $160,000 (F) $0.040 (V) Delivery Expense $120,000 (F) $0.005 (V) Credit and Collection Expense $76,000 (F) $0.003 (V) Expected unit sales in 2010 were 1,200,000, and 2010 total revenue was expected to be $12,000,000. Actual 2010 unit sales turned out to be 1,100,000, and total revenue was $11,000,000. Actual costs in 2010 were: Cost of Goods Sold $6,000,000 Selling and Promotion Expense $1,000,000 Building Occupancy Expense $340,000 Buying Expense $560,000 Delivery Expense $160,000 Credit and Collection Expense $20,000 Required Compute the flexible-budget variances for the following two cost items (enter favorable variances as positive numbers and unfavorable variances as negative numbers): Selling and Promotion Expense??????? Delivery Expense????????
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
