need help understanding management variance in budgeting


D

dom

I've been given this problem in my accounting class that appears, at
least on the surface, to be a mistake. I feel like I need more
information to answer this question. I'm told that I have the
following "profit data" for 2006:

Static budget: $4.7
Flexible budget: $3.6
Actual budget: $2.2

We are asked to calculate the management variance given this
information. The problem I'm running up against is that everything in
my textbook says that to calculate management variance, you need to
know some cost figures, specifically, "management variance = flexible
costs - actual costs." I'm obviously missing something, because I
don't understand how I can answer this question without more
information.

I've sent an e-mail to my instructor for clarification, but haven't
gotten a response yet.
 
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D

dom

Ignore this question as it turns out. My instructor e-mailed me back
to tell me he made a mistake in posting the question.
 

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