comparing the flexible budget to the planning budget isolates the impact of the activity level on the variance between actual results and the planning budget Solution Purchased the machine at an invoice price of $10,000; paid $8,000 cash and signed a note for the balance, payable on October 1, 2015 with annual interest at a rate of 6 percent..

1. comparing the flexible budget to the planning budget isolates the impact of the activity level on
the variance between actual results and the planning budget
Solution
Purchased the machine at an invoice price of $10,000; paid $8,000 cash and signed a note for the
balance, payable on October 1, 2015 with annual interest at a rate of 6 percent.