Chapter 10: budgetary control e.g.= 1.

50 x 8,000 = 12,000

STEP 2: sum everything

1. static budget report = is a projection of budget data

at one level of activity.
3. flexible budget report

If actual > budget unfavorable (under budget)

If actual < budget favorable

*divide by 12 if given yearly figure

If actual > budget unfavorable (under budget)

If actual < budget favorable

2. flexible budget = is a series of static budgets at diff

levels of activity.

STEP 1: compute total cost for variable cost items

= cost per unit x DLH