Estimating Flexible Selling Expense Budget and Computing Sales Volume Variance

Essay

Estimating flexible selling expense budget and computing sales volume variance.Florence Products estimates that it will incur the following selling expenses next period:

Required:
a.Derive the cost equation for selling expenses.(Hint: y = a + bx + cy. )
b.Assume that Florence sells 62,000 units during the period.Budgeted sales totaled 75,000 units at a budgeted sales price of $5.50 per unit.Prepare a variance report to show the difference between the master budget and the flexible budget.
(Florence Products;estimating flexible selling expense budget and computing variances. )