Flexible budget and static budget, Financial Accounting

Brabham Enterprises manufactures tires for the Formula One motor racing circuit.

For August 2011, Brabham budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and a total fixed cost of $54,000. The budgeted selling price was $110 per tire. Actual results in August 2011 were 2,800 tires manufactured and sold at a selling price of $112 per tire. The actual total variable costs were $229,600 and the actual fixed costs were $50,000.

Required

2.1 Prepare a performance report that uses a flexible budget and static budget showing the different variances between the actual and the static budget and the flexible budget

2.2 Discuss the difference between a static budget and a flexible budget and comment on the results based on the performance report you have prepared for Brabham.

 

Posted Date: 3/26/2013 3:13:31 AM | Location : United States







Related Discussions:- Flexible budget and static budget, Assignment Help, Ask Question on Flexible budget and static budget, Get Answer, Expert's Help, Flexible budget and static budget Discussions

Write discussion on Flexible budget and static budget
Your posts are moderated
Related Questions
#questiondd

You have an investment in a portfolio with a counterparty whose current credit rating is Baa. The current market value of the portfolio is $50,000,000 and its annual volatility is

URL services has two divisions. Basic webpages and custom webpages. Ricky Vega, Custom's manager wants to find out why Custom is not profitable. He has prepared the following repor

Mr N. M. is lucky to have a lottery prize of Rs 20 million. He does not have any liability and does not have any claimant over this money. He has the following alternatives: (i)

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Determine the Balancing risk and return All decision making involves future and business decision making is no exception. Only thing certain about the future, though, is that w

Jackson Corporation's bonds have 12 years remaining to maturity. Interest is paid yearly, the bonds have a $1,000 par value, and the coupon interest rate is 10.5%. The bonds have a

Calculation of Profitability ratios  -                     2008 2009 2010 G Net Sal

Q. What do you mean by suspense account? How are errors in accounting classified? Suspense account: A suspense account is an account, which is opened when the trail balance does

Is there two type of way to do balance sheet?