In analyzing company operations, the controller of the Carson Corporation found a $250,000 favorable flexible budget revenue variance. The variance was calculated by comparing the actual results with the flexible budget. This variance can be wholly explained by:

Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs? Please explain.   Considering the flexible budgeting topic,  it is important to look at this analysis as a significant contribution to the management of the company.  Knowing what the bottom line profit or loss is important.  But what is more important is to understand how your actual results varied in terms of units sold versus how the actual cost of each unit differed from the budget.     What is a good example of this?

The management of Earth Barber Lawnmowers has calculated the following variances: Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Select one: $8000 U 5000 F Fixed overhead cost variance 4000 F Fixed overhead volume variance 2,500 F When determining the total product cost flexible budget variance, what is the total fixed overhead variance of the company? A. $7000 F B. $4000 F C. $9000 F D. $5000 F 37,000 F 18,000 F 12,000 U 3000 F

Determine the flexible budget variance if the sales volume variance is $134,000 F and static - budget variance is $123,000 F. Indicate whether the variance is favourable or unfavourable. Do not enter dollar signs or commas in the input boxes. Enter the variance amount as a positive value.