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5 April, 19:29

Reynolds Construction Materials Company has a sales office that sells concrete culvert pipes to property developers. The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided. Revenue Center Responsibility Report Product Type Actual Sales Revenue Flexible Budget Variance U/F Flexible Budget Sales Volume Variance U/F Static Budget 40 inch $31 comma 700 $30 comma 500 $40 comma 800 36 inch long 40 comma 150 42 comma 100 33 comma 200 36 inch short 36 comma 000 33 comma 200 31 comma 000 32 inch 19 comma 000 20 comma 900 28 comma 400 What is the flexible budget variance for the 40minusinch pipe?

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  1. 5 April, 20:00
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    The flexible budget variance for the 40minusinch pipe is $1,200 favorable

    Explanation:

    According to the given data we have the following:

    Actual sales revenue=$31,700

    Flexible budget=$30,500

    Therefore, in order to calculate the the flexible budget variance for the 40minusinch pipe, we would have to use the following formula:

    Flexible budget variance = Actual sales revenue - Flexible budget

    Flexible budget variance = $31,700 - $30,500

    Flexible budget variance = $1,200 F avorable

    The flexible budget variance for the 40minusinch pipe is $1,200 favorable
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