Exercise 16-25 Name:
Insert your answers in the gray-shaded cells or select from drop-down
list. Enter formulas where appropriate. If an answer is incorrect, the
word “wrong” will appear.
a. Variable Cost Analysis
Actual variable costs 900,000$
Flexible budget:
Actual employee turnover 2,100
Std. var. cost per employee $400 (840,000)
Variance $60,000
unfav.
b. Fixed Cost Analysis
Actual
Applied
AV x SP
440,000$ 420,000$
40,000$
U
(20,000)$ F
Spending Variance Volume Variance
20,000$
U
Total Fixed Cost Variance
Solution
$400,000
Budgeted
SV x SP