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Evaluate the usefulness of static budget reports For the quarter ended March 31,

ID: 2468893 • Letter: E

Question

Evaluate the usefulness of static budget reports

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $321,700 budget; $336,200 actual.

Prepare a static budget report for the quarter.

MARIS COMPANY
Sales Budget Report
For the Quarter Ended March 31, 2012

Product Line

Budget

Actual

Difference

Garden-Tools

$

$

$

FavorableUnfavorableNeither favorable nor unfavorable

MARIS COMPANY
Sales Budget Report
For the Quarter Ended March 31, 2012

Product Line

Budget

Actual

Difference

Garden-Tools

$

$

$

FavorableUnfavorableNeither favorable nor unfavorable

Explanation / Answer

Sales Budget Variance / Sales Value Variance = Actual Sales - Budgeted Variance

= 336200 - 321700

= 14500 (F)

Conclusion:- $ 14500 Favourable.

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