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:
?
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.

Question

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:
?  
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.

Quizplus · Accepted Answer

The Answer of 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:
?  
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.

Tyson's Hardware, a Retailing Company with Several Locations, Anticipated That