Estimating Flexible Selling Expense Budget and Computing Variances

question 52

Essay

Estimating flexible selling expense budget and computing variances.Golden Nugget estimates the following selling expenses next period:

Required:
a.Derive the cost equation (y = a + bx)for selling expenses.(Hint: y = a + bx + cy. )
b.Assume that Golden actually sells 60,000 units during the period at an average price of $7 per unit.The company had budgeted sales for the period to be: volume,75,000 units;price,$6.50.Calculate the sales price and volume variance.
c.The actual selling expenses incurred during the period were $90,000 fixed and $40,000 variable.Prepare a profit variance analysis for sales revenue and selling expenses.

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Definitions:

S-T Segment

A portion of the ECG tracing between the S and T waves, representing the period when the heart's ventricles are depolarized.

Electrical Impulses

Signals generated by nerve or muscle cells to communicate and facilitate bodily functions.

Electrodes

Devices that conduct electricity, often used in medical treatments or equipment to record or stimulate electrical activity in the body.

Electrocardiogram

A test that records the electrical activity of the heart to identify irregularities in heart rhythm and structure.