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Problem: Flexible Budget Variances - Appleby Inc.
The controller of Appleby Inc. created standards for variable costs for one of its products asfollows: per unitDirect material $2.00Direct labour 5.60Variable overhead 1.25At the beginning of the year, Appleby Inc. estimated the average selling price to be $15.00 per unit, and at this price estimated sales to be 70,000 units. Annual fixed costs were estimated to be$180,000.Subsequent to year end, the controller determined actual results to be sales of 75,000 units at anaverage price of $13.50 per unit. Total variable costs were $660,000 and total fixed costs were$192,000. There was no beginning or ending inventory.
Required:
1. Calculate the flexible budget, sales volume and static budget variances.
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