Difference between a static budget and a flexible budget, Financial Accounting

Assignment Help:

XYZ Enterprises manufactures tires for the Formula One motor racing circuit. For August 2011, XYZ 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  

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. 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 XYZ.


Related Discussions:- Difference between a static budget and a flexible budget

Concept of financial statements , Concept  of Financial statements  Fin...

Concept  of Financial statements  Financial statements portray the financial effect of transactions and events by grouping them into classes broadly called elements. A complete

Heath foods''s bonds , Heath Foods's bonds have 6 years left over to maturi...

Heath Foods's bonds have 6 years left over to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8%. They pay interest yearly and have a 10% coupon rate. Wh

Practice Test, I need help with a practice test so I can study well for my ...

I need help with a practice test so I can study well for my midterm soon this week.

What do you mean by operating agreement, Q. What do you mean by Operating A...

Q. What do you mean by Operating Agreement? Operating Agreement - Agreement, generally a written document which sets out the rules by which a LIMITED LIABILITY COMPANY (LLC) is

Remedies available to beneficiary-breach of trust, Remedies available to be...

Remedies available to beneficiary 1) Injunction - to prevent unauthorised action by trustees; 2) Personal action - a trustee is only liable for his own acts and defaul

Which depreciation method would produce the higher npv, Wendy is evaluating...

Wendy is evaluating a capital budgeting project that should last for 4 years. The project requires $ 800,000 of equipment. She is unsure what depreciation method to use in her anal

Temporary-timing differences-financial statement , Temporary or Timing diff...

Temporary or Timing differences Temporary/timing differences relate to those items that are adjusted in the current period and are again adjusted in subsequent financial period

What is the financial objective of a business, What is the financial object...

What is the financial objective of a business A business is created to enhance wealth of its owners. This may come as a surprise, as there are other objectives which a business

Liquidation of the company, The balance sheet of Marilyn and Monroe was as ...

The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership's being liquidated: cash, $25,426; other assets, $130,439; liabilities, $22,198; Marilyn

Calculation of leverage ratios, Calculation of Leverage ratios  - ...

Calculation of Leverage ratios  -                     2008 2009 2010 U EBIT or Oper

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd