Calculate the value of A. Enter Favourable variances as a positive number and Unfavourable variances as a negative number. 2 Units 3 Revenues 4 Less: Total Variable Costs 5 Direct Materials 6 Direct Labour 7 Variable Manuf. OH. 8 Total Variable Costs 9 Total Contribution Margin 10 Total Fixed Costs 11 Operating Income $ B Static 120,000 C Actual $ D Flex Budget 80,000 E Flex Budget Variance $70,000 F $20,000 U $20,000 U A
Calculate the value of A. Enter Favourable variances as a positive number and Unfavourable variances as a negative number. 2 Units 3 Revenues 4 Less: Total Variable Costs 5 Direct Materials 6 Direct Labour 7 Variable Manuf. OH. 8 Total Variable Costs 9 Total Contribution Margin 10 Total Fixed Costs 11 Operating Income $ B Static 120,000 C Actual $ D Flex Budget 80,000 E Flex Budget Variance $70,000 F $20,000 U $20,000 U A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Calculate the value of A.
Enter Favourable variances as a positive number and Unfavourable variances as a negative number.
1
2 Units
3
4 Less: Total Variable Costs
5 Direct Materials
Revenues
6 Direct Labour
7 Variable Manuf. OH.
8 Total Variable Costs
9 Total Contribution Margin
10 Total Fixed Costs
11 Operating Income
$
B
Static
120,000
C
Actual
$
D
Flex Budget
80,000
E
Flex Budget Variance
$70,000 F
$20,000 U
$20,000 U
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