MA40 - Flexible Budgets Explained

Go to: www.accountingw... to download the problems.
Module 9 examines variances. We learn to compute and interpret materials, labour, variable overhead and fixed overhead variances.
We also learn about Flexible Budgeting.

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[@TheGamer-ll2cs]

Hey tony! Urgent question. Why is it wrong to say 500,000/250= $2000 per day and hence 2000*30=600,000 and hence a favourable variance of 70,000?

[@Tony-Bell]

The issue is that fixed costs should NOT be considered per day. you could do that with total variable costs, but not fixed.

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