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

Business mathamatics, im doing compound interest my calculator doest have a...

im doing compound interest my calculator doest have anxy butyx cant do nothing with the ten being the power of .9

The coupon interest rate, Jackson Corporation's bonds have 12 years remaini...

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

T-account, Received 10,000 contribution from bill london in exchange for co...

Received 10,000 contribution from bill london in exchange for common stock What 2 accounts are used

The market value of a bond, The market value of a bond is equal to: The pre...

The market value of a bond is equal to: The present value of all future cash payments provided by a bond The present value of all future interest payments provided by a bond The pr

Unrealized profit on property, Unrealized profit on Property, Plant and Equ...

Unrealized profit on Property, Plant and Equipment Where one company sells an item of PPE  to the other company in the group then, this will lead to two main problems. a) The se

Calculate the profit maximization, Complete the table and use the informati...

Complete the table and use the information to determine profit maximization or loss minimization. 1. Complete the table Normal 0 false false false EN-I

Cashflows from financing activities-group accounts, Cashflows from financin...

Cashflows from financing activities Financing activities are those activities that will lead to either an increase or decrease in shareholders funds and long-term liabilities.

Income statement, Income statement2013 2012 2011 Net revenue 5,075,390.. 4,...

Income statement2013 2012 2011 Net revenue 5,075,390.. 4,763,180.. 4,158,507 Cost of goods 1,377,242.. 1,297,102.. 1,134,966.. Gross profit 3,698,148.. 3,466,078.. 3,023,541 Total

Sales volume reaches the maximum capacity, Sales volume reaches the maximum...

Sales volume reaches the maximum capacity of the new machine in Year 4. The positive NPV point to that the investment in Machine Two is financially acceptable althoug

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