The budgeted and actual results of Powers Inc. for the month of June were as...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The budgeted and actual results of Powers Inc. for the month of June were as follows. The company uses a marginal costing system. There were no opening and closing inventories.
Static Budget
Actual Results
Sales & Production
2,500 units
2,000 units
$
$
$
$
Sales
60,000
51,000
Direct materials
12,500
12,000
Direct labour
10,000
8,000
Variable overhead
5,000
4,500
Other Costs
5,000
5,500
Rent & Rates
7,500
7,000
Total Costs
40,000
37,000
Profit/Loss
20,000
14,000
The following information relates to cost behaviour: Other costs consist of fixed costs of $2,000, plus a variable cost of $1.50 per unit made and sold.
What are the Flexible Budgets Profit/Loss, and the related Variance when compared to the Actual Results Profit?
Select one:
A. $12,100 and $4,400 (F)
B. $13,500 and $500 (F)
C. $12,100 and $6,400 (F)
D. $13,500 and $500 (A)
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: Flex AI - Your personal assistant for all your inquiries!
