Tyson's Hardware,a Retailing Company with Several Locations,anticipated That It Would

question 49

Essay

Tyson's Hardware,a retailing company with several locations,anticipated that it would have 96,000 sales units for 664 customer shipments.Average storage bin usage for various inventories was estimated to be 200 storage bins per day.The costs and cost drivers were determined to be as follows:

During the year the warehouse processed 90,000 units for 600 customer shipments.The workers used 225 storage bins on average each day to sort,store,and process goods for shipment.The actual costs for were:

Required:
a.Prepare a static-budget and show the static-budget variances for each cost item and the total static-budget variance.
b.Prepare a flexible-budget and show the flexible-budget variances for each cost item and the total flexible-budget variance.

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Definitions:

Health Care Industry

A sector that provides medical services, manufactures medical equipment, and develops pharmaceuticals, aiming to improve individual health outcomes.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, used to fund social security and medicare in many countries.

Health Insurance

A type of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Moral Hazard Problem

A situation in economics where one party is more likely to take risks because the negative consequences of the risk will be felt by another party, often seen in insurance and finance sectors.