As part of the budgeting process,Drago Company developed the following master budget for September.Drago is in the process of preparing the flexible budget and understanding the results.

Required:
a.Prepare the flexible budget in the area provided above.
b.Determine the flexible budget variance for flexible (variable)costs.
c.Determine the planning variance for flexible (variable)variance costs.
d.Should the manager be congratulated for keeping costs under control? Explain.

Question

As part of the budgeting process,Drago Company developed the following master budget for September.Drago is in the process of preparing the flexible budget and understanding the results.

Required:
a.Prepare the flexible budget in the area provided above.
b.Determine the flexible budget variance for flexible (variable)costs.
c.Determine the planning variance for flexible (variable)variance costs.
d.Should the manager be congratulated for keeping costs under control? Explain.

Quizplus · Accepted Answer

The Answer of As part of the budgeting process,Drago Company developed the following master budget for September.Drago is in the process of preparing the flexible budget and understanding the results.

Required:
a.Prepare the flexible budget in the area provided above.
b.Determine the flexible budget variance for flexible (variable)costs.
c.Determine the planning variance for flexible (variable)variance costs.
d.Should the manager be congratulated for keeping costs under control? Explain.

As Part of the Budgeting Process,Drago Company Developed the Following