Flexible Budget Assignment | Homework For You

Sinclair and Reid, an accounting firm, has budgeted $200 000 in fixed expenses per month for the tax department. It has also budgeted variable costs of $10 per tax return prepared for supplies, $70 per return for labour, and $20 per return for computer time. The firm expects revenue from tax return preparation to be $600 000, based on 4000 tax returns at $300 each. During the current month, 3700 tax returns were actually prepared, at an average fee of $294 each. Actual variable costs were $18 200 for supplies, $130 000 for labour, and $36 000 for computer time. Actual fixed costs were $200 000.

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Required. Prepare a flexible budget for the tax department of Sinclair and Reid for the current month.

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