FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following information pertains to the month of August. As part of the budgeting process, Shelley Company developed the following
static budget for August. Shelley Company is in the process of preparing the flexible budget and understanding the results.
Actual
Flexible
Static
Results
Budget
Budget.
Sales volume (in units)
40,000
60,000
Sales revenues
$1,000,000
Variable costs
780,000
$1,200,000
1.125.000
Contribution margin.
220,000
Fixed costs
Operating profit
158,000
$ 62,000
S
ԵՒ ԵԴ
750,000
70,000
$5,000
The flexible budget will report
O $900,000
O $750,000
O $600,000
$780,000
O $480,000
for variable costs.
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Transcribed Image Text:The following information pertains to the month of August. As part of the budgeting process, Shelley Company developed the following static budget for August. Shelley Company is in the process of preparing the flexible budget and understanding the results. Actual Flexible Static Results Budget Budget. Sales volume (in units) 40,000 60,000 Sales revenues $1,000,000 Variable costs 780,000 $1,200,000 1.125.000 Contribution margin. 220,000 Fixed costs Operating profit 158,000 $ 62,000 S ԵՒ ԵԴ 750,000 70,000 $5,000 The flexible budget will report O $900,000 O $750,000 O $600,000 $780,000 O $480,000 for variable costs.
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