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With flexible budget, you check whether the actual activity level is within the range of activity for flexible budget. If yes, then you compare very easily. Just extrapolate your budget for the actual activity level. Only Variable costs needs to be updated (as Fixed costs remain same for a particular activity level). Finally you have the actual results and budgeted results, both on the same activity level. This provides you the ground for comparing the both.

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Q: What would the flexible budget amount be if the master budget revenue was 250000 and the actual results were 254800 and how do you get the answer?
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How many times greater is 254800 than 250000?

254800 is greater than 250000 by 254800 - 250000 = 4800.


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What is the least common multiple of 4900?

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