Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Revenue Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Income Master Budget 17,500 $259,000 $45,000 $25,000 $125,000 $195,000 $64,000 $20,250 $13,000 $33,250 $30,750 Budget Formula $2.57 $1.43 $7.14 Actual Amounts 17,000 $255,000 $38,000 $25,500 $129,500 $193,000 $62,000 $20,250 $13,000 $33,250 $28,750 Flexible Budget 17,000 $255,000 $43,714 $24,286 Variance 500 4,000 $20,250 $13,000 7,000 500 $33,250 $32,321 4,500 2,000 2,000 2,000 $38,000 $25,500 $121,429 $129,500 Actual 17,000 $255,000 $189,429 $193,000 $65,571 $62,000 $20,250 $13,000 $33,250 $28,750 Variance Fav/Unfav 5,714 1,214 8,071 3,571 3,571 3,571 % Diff Investigate?

Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Revenue Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Income Master Budget 17,500 $259,000 $45,000 $25,000 $125,000 $195,000 $64,000 $20,250 $13,000 $33,250 $30,750 Budget Formula $2.57 $1.43 $7.14 Actual Amounts 17,000 $255,000 $38,000 $25,500 $129,500 $193,000 $62,000 $20,250 $13,000 $33,250 $28,750 Flexible Budget 17,000 $255,000 $43,714 $24,286 Variance 500 4,000 $20,250 $13,000 7,000 500 $33,250 $32,321 4,500 2,000 2,000 2,000 $38,000 $25,500 $121,429 $129,500 Actual 17,000 $255,000 $189,429 $193,000 $65,571 $62,000 $20,250 $13,000 $33,250 $28,750 Variance Fav/Unfav 5,714 1,214 8,071 3,571 3,571 3,571 % Diff Investigate?

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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