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Finger [1]
3 years ago
7

Applet Systems is a​ start-up company that makes connectors for​ high-speed Internet connections. The company has budgeted varia

ble costs of $ 130 for each connector and fixed costs of $ 4,500 per month. Applet ​'s static budget predicted production and sales of 100 connectors in​ August, but the company actually produced and sold only 72 connectors at a total cost of $ 19,000 .
Applet's flexible budget variance for total costs is:
Business
1 answer:
Marysya12 [62]3 years ago
5 0

Answer:

Applet's flexible budget variance for total costs is $5,140  unfavorable variance since actual is higher than budgeted cost

Explanation:

Flexible budget variance for total costs=actual total costs-budgeted total costs of 72 connectors

actual total costs of 72 connectors=$19,000

budgeted total costs of 72 connectors=budgeted fixed cost+budgeted total variable cost of 72 connectors

total budgeted variable cost=72*$130=$ 9,360.00  

budgeted fixed cost is $4,500

Budgeted total costs of 72 connectors=$9,360.00+$4,500.00=$ 13,860.00  

Flexible budget variance =$ 13,860.00-$19,000.00=$5140  unfavorable variance

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