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The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,500 units with revenues of $3,306,000. Total variable costs were budgeted at $1,928,500 and fixed costs at $952,000. During the period, actual production and actual sales were 255,100 units. The actual revenues were $3,443,000. Actual variable costs were $6.45 per unit. Actual fixed costs were $982,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Cherrylawn Corporation Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 S 0

The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,500 units with revenues of $3,306,000. Total variable costs were budgeted at $1,928,500 and fixed costs at $952,000. During the period, actual production and actual sales were 255,100 units. The actual revenues were $3,443,000. Actual variable costs were $6.45 per unit. Actual fixed costs were $982,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Cherrylawn Corporation Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 S 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,500 units with revenues of $3,306,000. Total variable costs were budgeted at $1,928,500 and fixed costs at $952,000. During the period, actual production and actual sales were 255,100 units. The actual revenues were $3,443,000. Actual variable costs were $6.45 per unit. Actual fixed costs were $982,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Cherrylawn Corporation Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 S 0
Transcribed Image Text:The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,500 units with revenues of $3,306,000. Total variable costs were budgeted at $1,928,500 and fixed costs at $952,000. During the period, actual production and actual sales were 255,100 units. The actual revenues were $3,443,000. Actual variable costs were $6.45 per unit. Actual fixed costs were $982,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Cherrylawn Corporation Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 S 0
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