McCoy Industries has prepared the following, partially complete profit variance analysis: Required: Find the values of the missing items. Assume that actual sales volume equals actual production volume. (There are no inventory level changes.) Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Units Sales revenue Less Variable manufacturing costs Variable marketing and administrative costs Contribution margin Less Fixed manufacturing costs Reported Income Flexible Master Budget Statement (based on actual sales volume) Manufacturing Variance Marketing and Administrative Variance Budget (based on actual sales (based on budgeted Sales Price Variance volume) Sales Activity Variance sales volume) 71,400 71,400 11,900 F 59,500 $ 19,278 F $ 160,650 23,126 $ 9,639 U 2,142 F Fixed marketing and administrative costs Operating profits 19,278 102,816 85,680 25,704 4,284 U $ 64,260 $ 53,550 16,065 $ 19,278 F $ 21,420
McCoy Industries has prepared the following, partially complete profit variance analysis: Required: Find the values of the missing items. Assume that actual sales volume equals actual production volume. (There are no inventory level changes.) Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Units Sales revenue Less Variable manufacturing costs Variable marketing and administrative costs Contribution margin Less Fixed manufacturing costs Reported Income Flexible Master Budget Statement (based on actual sales volume) Manufacturing Variance Marketing and Administrative Variance Budget (based on actual sales (based on budgeted Sales Price Variance volume) Sales Activity Variance sales volume) 71,400 71,400 11,900 F 59,500 $ 19,278 F $ 160,650 23,126 $ 9,639 U 2,142 F Fixed marketing and administrative costs Operating profits 19,278 102,816 85,680 25,704 4,284 U $ 64,260 $ 53,550 16,065 $ 19,278 F $ 21,420
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 19E: Data for Torleson Company are as follows: Required: 1. Calculate the sales price variance. 2....
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