Johnson Construction Materials Company has a sales office that sells concrete culvert pipes to property developers
The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided.
Revenue Center Responsibility Report
Product
Type Actual
Sales
Revenue Flexible
Budget
Variance U/F Flexible
Budget Sales
Volume
Variance U/F Static
Budget
40 inch $31,700 $30,000 $40,800
36 inch long 40,200 42,200 33,000
36 inch short 36,000 33,100 31,100
32 inch 19,100 20,900 28,000
What is the flexible budget variance for the 40-inch pipe?
A) $1,700 U
B) $10,800 F
C) $10,800 U
D) $1,700 F
D .D) Flexible budget variance = Actual sales revenue - Flexible budget sales
Flexible budget variance = $31,700 - $30,000 = $1,700
You might also like to view...
Erika is a marketing manager at a local equipment manufacturer. She knows that saving for college for her 5-year-old twin boys is a challenge. Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan being implemented?
A. TD Ameritrade college tuition plan B. 207 college tuition plan C. 529 savings plan D. 401(k) savings plan E. U.S. saving bonds plan
To demonstrate strong support for their company, frontline employees or supervisors should always use "they" language when dealing with customers.
Answer the following statement true (T) or false (F)
Which substances are on the basic side of the pH scale?
A. baking soda, oven cleaner, and human blood B. tomatoes, oven cleaner, and human blood C. Great Salt Lake, oven cleaner, and tears D. baking soda, oven cleaner, and urine E. beer, vinegar, and black coffee
On August 1, Covington Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:
a. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 Insurance Expense . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 18,000 b. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 c. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 d. Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 e. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 18,000 Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 18,000