Answer:
The operating profit under actual budget gives $833,000 while flexible budget gives $982,500 which results in an unfavorable variance of $149,500
Explanation:
In computing the final variance I started with sales revenue for the actual production and sales of 230,000 under both actual and flexed budgets.
This approach implies that the original budget was revised to reflect actual quantity produced and sold but the budgeted amounts were used under flexed budget while the actual amounts were applied under the actual budget preparation.
Find the details in the attached.
Answer:
$9120
Explanation:
Using sum of years digit,
5+4+3+2+1=15
5/15*(72000-3600)=22800 for first year
4/15*68400 = 18240 for second year
Total depreciation before change of accounting policy = 22800+18240=41040
Net value of asset at start of 2018 = 68400-41040= 27360
Straight line depreciation for 2018 = 27360/3 = 9120
