Estimating flexible selling expense budget and computing sales volume variance.Miami 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 Miami sells 50,000 units during the period.Budgeted sales totaled 65,000 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.
(Miami Products;estimating flexible selling expense budget and computing variances. )

Question

Estimating flexible selling expense budget and computing sales volume variance.Miami 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 Miami sells 50,000 units during the period.Budgeted sales totaled 65,000 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.
(Miami Products;estimating flexible selling expense budget and computing variances. )

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The Answer of Estimating flexible selling expense budget and computing sales volume variance.Miami 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 Miami sells 50,000 units during the period.Budgeted sales totaled 65,000 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.
(Miami Products;estimating flexible selling expense budget and computing variances. )

Estimating Flexible Selling Expense Budget and Computing Sales Volume Variance