acct511_2

Flexible budget variance is the difference between the actual and flexible budget amounts. There are variances for sales, variable costs, fixed costs, and operating income.

The total flexible budget variance is the difference between the flexible budget operating income and the actual operating income. It can be misleading, since it represents the sum of variances in materials, labor, overhead, and administrative expenses, and there can be offsetting that hides important changes.

Selling price variance is the difference between the actual sales revenues and the flexible budget sales revenues

Difference between total variable costs and total variable costs in the flexible budget