Question

Classic Products Company manufactures colonial style desks. Some of the company's data was misplaced. Use the following information to replace the lost data: What amounts are reported for revenues in the flexible-budget (A) and the static-budget (B), respectively

Answer 1

Question is incomplete

----_------- Actual Results ---- Flexible Budget Variances ---- Flexible Budget

Revenues: $187,250 ------- $5,000F --------- (A)

----_------- Sales-Volume Variances -_-- Static Budget

Revenues: $6,260 U -------- (B)

Answer:

Reported Amount = $182,250 ---- A

Reported Amount = $188,510 ----- B

Explanation:

Reported Amount for revenues in the flexible-budget (A) and the static-budget (B) are calculated as follows;

For A:

Reported Amount = Actual Results - Flexible Budget Variance

Where Actual Results = $187,250

And Flexible Budget Variance = $5,000

Reported Amount = $187,250 - $5,000

Reported Amount = $182,250

For B:

Reported Amount = Reported Amount of A + Sales Volume Variances

Reported Amount = $182,250 + $6,260

Reported Amount = $188,510

Hence,the amounts reported for revenues in the flexible-budget (A) and the static-budget (B), are

$182,250 and $188,510 respectively.