Match each term to the correct definition. Terms: a. Flexible budget b. Flexible budget variance c. Sales volume variance d. Static budget e. Variance Definitions: ▼ a. b. c. d. e. 1. A summarized budget for several levels of volume that separates variable costs from fixed costs. ▼ a. b. c. d. e. 2. A budget prepared for only one level of sales. ▼ a. b. c. d. e. 3. The difference between an actual amount and the budgeted amount. ▼ a. b. c. d. e. 4. The difference arising because the company actually earned more or less revenue, or incurred more or less cost, than expected for the actual level of output. ▼ a. b. c. d. e. 5. The difference arising only because the number of units actually sold differs from the static budget units.

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.

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Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?