Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 32

Refer to Exhibit 14.8 and the accompanying discussion in the text. Demonstrate that the flexible-budget variance for PVC during 2010 was $1,680F.

Step 1 of 2

Flexible budget variance is the difference between the actual variable cost minus the budgeted variable cost. F signifies that the result is favorable and U signifies that result is unfavorable.