Q 1.1: An owner who wants to have limited liability should form which type of business enterprise?
1 answer:
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Responsibility report for the financial period of the overhead costs incurred will have a negative shortfall and a difference of $4125 for the controllable costs.
<h3>What are overhead costs?</h3>Overhead costs are such costs which are continuously in an organization while operating in the regular course of business. The overhead costs are estimated before they are actually incurred for efficiency of cost allocation.
The responsibility report for the overhead costs incurred by Malone Company for the given period are attached with an image for better reference.
Hence, it can be stated that the controllable costs' responsibility report shows as overhead costs of negative difference of $4125.
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Answer:
Flexible budget variance for Sales Revenue = $3,960 Favorable
Explanation:
Provided budget is static budget, firstly for calculating flexible budget variance for Sales Revenue.
For this flexible budget is made of same level of quantity as of actual level.
therefore Flexible budget sales = 990 units @ $70 per unit price will be same as of static budget.
Therefore Variance = Standard Flexible Budgeted Sales - Actual Sales
Standard Flexible Budgeted Sales = 990 $70 = $69,300
Actual Sales Revenue = 990 $74 = $73,260
Since actual revenue is more than budgeted sales this is favorable.
Flexible Budget Variance for Sales Revenue = $69,300 - $73,260 = $3,960
Since actual revenue is more than budgeted revenue therefore this is a favorable variance.
Flexible budget variance for Sales Revenue = $3,960 Favorable