Answer:
VARIANCE for Total Expenses = $3,000 F
Explanation:
PLANNING Budget:
Container Refurbished = 28
Employee salaries and wages = $55,100 + $900x(28) = $55,100 + $25,200 = $80,300
Refurbishing materials = $600x(28) = $16,800
Other expenses = $41,200
Total Expenses = $80,300 + $16,800 + $41,200 = $138,300
FLEXIBLE Budget:
Container Refurbished = 26
Employee salaries and wages = $55,100 + $900x(26) = $55,100 + $23,400 = $78,500
Refurbishing materials = $600x(26) = $15,600
Other expenses = $41,200
Total Expenses = $78,500 + $15,600 + $41,200 = $135,300
VARIANCE for Total Expenses:
VARIANCE = PLANNING Budget - FLEXIBLE Budget = $138,300 - $135,300 = $3,000 F
Since Planning Budget is greater than Flexible Budget, the change is favorable (F)
Hope this helps!
