Estimating Flexible Selling Expense Budget and Computing Sales Volume Variance

question 14

Essay

Estimating flexible selling expense budget and computing sales volume variance.Miami Products estimates that it will incur the following selling expenses next period:

Required:
a.Derive the cost equation for selling expenses.(Hint: y = a + bx + cy. )
b.Assume that Miami sells 50,000 units during the period.Budgeted sales totaled 65,000 units at a budgeted sales price of $5.50 per unit.Prepare a variance report to show the difference between the master budget and the flexible budget.
(Miami Products;estimating flexible selling expense budget and computing variances. )

---

Definitions:

Employment Gaps

Periods of time when an individual was not employed, which may appear in their work history.

Relevant Experiences

Past activities or jobs that directly relate to the position or task at hand, demonstrating suitability and competence.

Increased Responsibilities

The addition of more duties or tasks to a person's role, often accompanied by greater expectations for performance.

Salary Range

The spectrum of possible salaries that can be offered for a particular job, from the lowest to the highest amount.