Question

The ultica company y produces engine parts for car manu

i Data Table pns for parts for car man Performance Report Year Ended December 31, 2017 Flexible-Budget Flexible Variances Budget Sales-Volume ired variances Actual Results 103,000 Variances Static Budget 98,000 pnter "O then the sales ole dollar) Flexible-Bu Variand Units sold Revenues (sales) 695,250 450,000 401,800 176,400 Variable costs Contribution margin 245 250 119,850 225,400 100,000 Fixed costs 125,400 Operating income $ 125,400 Print Done Print Done

facturers. A new account and inter at Utica has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data.

1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0)
2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?
3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here?

Answer 1

Reguired Lin Calubade all the Actual Results Variance required Vorlause. - Performance Report Year Ended December 31, 2017 Flouble Budget Flexible Budget / sales volume Static Budget - Varance (0) (0)= (CE) CE) 103,000 5,000 () 98.00 2,72950 4,22300 20.500 (E) 4,01.800 11,7440098.0001,03,000) 264,600 1.85 400 900/up 1,76,400 8350 236,900 2,95 400 19850 400.0002 1.200 11,500 (UF) | 1,36,900 11,5500F) - 1,25,400 Ruol, 800148,550x103,00) 103.000 6.95250 450,000 1 Units sold 1 Revenues (sales) I variable Costs Contribution Margin 1 fined Costs | online ne 2,45.250 11.500 (E) 119,850 1.25,400

- ?) what are the actual and budgeted selling prices? what he actual and budgeted variable Costy per unit? до герш „Чs, 250 Actual Number of unity 1,03,000 Acteel Selling Purce : 6.75 Budget Revenues 4,01,800 Budgal Number of unity 98,000 Budget Selling price Actual variable Cost 4,50,000 Actual Number of unity 1,03,000 4.36 Actual variable Cost Budget vansable Cost 1,76,400 98000 Budget Number of units 18 Budget variable cost

variance you have Calculated and discuss 3. Review possible the Causes and polential problems. Two Varrance offsel each other , Qud Toled Flensble Budget Varpauce 11,500 (UF) Total sales volume Varrance 11,500 (F) 1. The main reason for the staffe budget variance is the reduction in unit volume from the Budgeted 98,000 to an actual 1,03,000 and Secondly there is increase in budgeted selling price of 401 per unit to 6-75 There was also decrease in variable Cast as compared to flevable budget. This showed that management has effectively Controlled the cost which is considered as a good gegn.