Business solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. the $174,560 budgeted expenses include $115,520 in variable expenses for desks and $19,040 in variable expenses for chairs, as well as $40,000 fixed expenses. the actual expenses include $41,800 fixed expenses. list fixed and variable expenses separately.

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Business

Big Mac

9 August, 08:14

Business solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. the $174,560 budgeted expenses include $115,520 in variable expenses for desks and $19,040 in variable expenses for chairs, as well as $40,000 fixed expenses. the actual expenses include $41,800 fixed expenses. list fixed and variable expenses separately.

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Pranav Orozco · Answer 1

Variable Expenses

Desk $115,520

Chairs $19,040

Fixed cost

Budgeted $40,000

Under absorbed $1,800

Explanation:

Variable costs are those will vary will the change in sale or activity level e. g material cost, labor cost etc.

Fixed costs are those which remains fix and does not vary with the change in sale or activity level.