Homework Answers
Ans.
| Actual (763 Units) | Variable Cost Variance | Sales Price Variance | Flexible Budget (763 Units) | Sales Activity Variance | Master Budget (560 Units) | |
| Revenue | $71,200 |
$31,042 U =($102,202 - $71,200) |
$102,242= ($75,040/560 Units x 763 Units) | $27,202 F =($102,242 - $75,040) | $75,040 | |
| Less: | ||||||
| Variable Costs | 35,520 |
$4,156 F = (39,676 - 35,520) |
39,676= (29120/560units x 763 units) | 10,556 U =(29,120 - 39,676) | 29,120 | |
| Contribution Margin | $35,680 | $4,156 F | $31,042 U | $62,566 | $16,646 F | $45,920 |
Contribution Margin
Actual = $35,080
Budget = $45,920
Decreased by $10,240
Note : -
Actual (Based on actual activity of 763 unit detalings)
Flaxible budget (based on actual activity of 763 unit detalings)
Master budget (based on a production of 560 units detalings)
Last quarter Price = $75,040 / 560 = $134
$102,242 = Actual units x $134 = 763units X $134
Last quarter unit variable cost = 29,120 / 560 units = $52
$39,676 = Actual units X $52 = 763 x $52
The Numbar of detailings increased by 203 units which increased profit by $16,646 however the actual average price was ( $71,200 / 763 ) $93.32 so the average price per detailing by ($134 - $93.32 ) $40.68 As a result profit decreased by $10,240 ($45,920 - $35,680)
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(PLEASE INCLUDE STEP BY STEP CALCULATIONS)
Osage, Inc., manufactures and sells lamps. The company produces
only when it receives orders and, therefore, has no inventories.
The following information is available for the current month
Actual (based on actual orders for 464,000
units)
Master Budget (based on budgeted orders for 508,000
units)
Sales revenue
$
4,982,000
$
5,080,000
Less
Variable costs
Materials
1,510,000
1,524,000
Direct labor
290,000
355,600
Variable overhead
675,800
660,400
Variable marketing...
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variable per unit and $226,100 fixed. During the period, actual
production and actual sales were 231,100 unit. The selling price
was $10.20 per unit. Variable costs were $5.60 per unit. Actual
fixed costs were $226,100.
Required Prepare a profit variance analysis.
(Indicate the effect of each variance by selecting “F” for
favorable, or “U” for unfavorable....
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(PLEASE INCLUDE STEP BY STEP CALCULATIONS)
Osage, Inc., manufactures and sells lamps. The company produces
only when it receives orders and, therefore, has no inventories.
The following information is available for the current month
Actual (based on actual orders for 464,000
units)
Master Budget (based on budgeted orders for 508,000
units)
Sales revenue
$
4,982,000
$
5,080,000
Less
Variable costs
Materials
1,510,000
1,524,000
Direct labor
290,000
355,600
Variable overhead
675,800
660,400
Variable marketing...
The
master budget at Western Company last period called for sales of
226,100 units at $10.10 each. The costs were estimated to be $3.86
variable per unit and $226,100 fixed. During the period, actual
production and actual sales were 231,100 unit. The selling price
was $10.20 per unit. Variable costs were $5.60 per unit. Actual
fixed costs were $226,100.
Required Prepare a profit variance analysis.
(Indicate the effect of each variance by selecting “F” for
favorable, or “U” for unfavorable....
The master budget at Western Company last period called for sales of 225,700 units at $9.70 each. The costs were estimated to be $3.82 variable per unit and $225,700 fixed. During the period, actual production and actual sales were 230,700 units. The selling price was $9.80 per unit. Variable costs were $5.20 per unit. Actual fixed costs were $225,700. Required: Prepare a profit variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable....
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