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11) Both the sales volume variance and the flexible budget
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# Question : 11) Both the sales volume variance and the flexible budget : 1886731

11) Both the sales volume variance and the flexible budget variance help revenue center managers understand why they have exceeded or fallen short of budgeted revenue.

12) Milliken Inc. provides the following information:

 Actual Sales Static Budget Flexible Budget Sales Volume Variance Sale Revenue \$556,500 \$525,000 \$450,000 ?

Calculate the sales volume variance.

A) \$31,500 F

B) \$31,500 U

C) \$75,000 U

D) \$106,500 F

13) Johnson Construction Materials Company has a sales office which sells concrete culvert pipes to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the following information.

What is the flexible budget variance for the 40 inch pipe?

A) \$1,850 U

B) \$3,000 F

C) \$10,000 U

D) \$1,500 F

14) Johnson Construction Materials Company has a sales office which sells concrete culvert pipes to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the following information.

What is the sales volume variance for the 36 inch long pipe?

A) \$1,850 U

B) \$9,000 F

C) \$10,000 U

D) \$1,500 F

15) Johnson Construction Materials Company has a sales office which sells concrete culvert pipes to property developers. The sales office is a revenue center and must prepare a monthly performance report. Below is the partially completed performance report.

The company uses management by exception to address flexible budget variances. On which product type would the company focus first?

A) 40 inch

B) 36 inch long

C) 36 inch short

D) 32 inch

 Actual Sales Revenue Flexible Budget Variance U/F Flexible Budget 40 inch \$31,500 \$1,500 F \$30,000 36 inch long \$40,150 \$1,850 U \$42,000 36 inch short \$36,200 \$3,200 F \$33,000 32 inch \$19,000 \$1,000 U \$20,000

16) Huang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter.

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How much is the percentage variance for the flexible budget variance for sales revenue?

A) 1.7 % F

B) 1.7 % U

C) 3.4 % U

D) 3.4 % F

17) Huang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter.

How much is the percentage variance for the flexible budget variance for traceable fixed expenses?

A) 0.8 % F

B) 0.8 % U

C) 0.3 % U

D) 0.3 % F

18) Which of the following statements is true of performance reporting?

A) Responsibility reports should focus on the person responsible for unfavorable variances, rather than information.

B) Managers should not be held accountable for uncontrollable variances.

C) Only unfavorable variances should be explained in the reports.

D) Every variance, regardless of magnitude, must be investigated by the managers.

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