Plush leather seats, selectable driving modes, executive-class seating, and more make the Lexus LS one of the most comfortable cars on the road. Climate Concierge, a Mark Levinson surround-sound system, and available rear entertainment are just some of the goodies available on this model.
What are total budgeted production costs for the year? (CIA adapted) $2,180,000 Brown Company has developed the following sales projections for the calendar year: Normal cash collection experience has been that 50% of sales is collected during the month of sale and 45% in the month following sale. The remaining 5% of sales are never collected).
When actual production is 350 widgets, a flexible budget will allow $4 of variable costs for each unit produced, or a total of $1,400 (350 x $4). With an actual cost incurred of $1,320, the variance is now favorable as $80 less was spent on variable production costs compared to the flexible budgeted amount.