Required Information [The following information applies to the questions displayed below.] The fixed budget for 20,800 units of production shows sales of $457,600; variable costs of $62,400; and fixed costs of $140,000. The company's actual sales were 26,500 units at $539,000. Actual variable costs were $113,900 and actual fixed costs were $137, Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of e- varlance by selecting favorable, unfavorable, or no variance.)
Required Information [The following information applies to the questions displayed below.] The fixed budget for 20,800 units of production shows sales of $457,600; variable costs of $62,400; and fixed costs of $140,000. The company's actual sales were 26,500 units at $539,000. Actual variable costs were $113,900 and actual fixed costs were $137, Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of e- varlance by selecting favorable, unfavorable, or no variance.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 20MCQ: A firm comparing the actual variable costs of producing 10,000 units with the total variable costs...
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![Required Information
[The following information applies to the questions displayed below.]
The fixed budget for 20,800 units of production shows sales of $457,600; variable costs of $62,400; and fixed costs of
$140,000.
The company's actual sales were 26,500 units at $539,000. Actual variable costs were $113,900 and actual fixed costs were $137,000.
Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each
varlance by selecting favorable, unfavorable, or no variance.)
Sales
Variable costs
Contribution margin
Fixed costs
Income
33
Flexible Budget Performance Report
Flexible
Actual
Budget
Results
S
S
689,000
62,400
626,600
Answer is not complete.
140,000
486,600
0
0
Variances
$ 47,000
34,000
81,000
15
7,000
74,000
Favorable!
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Favorable
Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5213aea-34f8-4732-8870-716467e80992%2F7bd36100-0d44-4952-8ef2-c31176f3212d%2Fdl5kp8o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
The fixed budget for 20,800 units of production shows sales of $457,600; variable costs of $62,400; and fixed costs of
$140,000.
The company's actual sales were 26,500 units at $539,000. Actual variable costs were $113,900 and actual fixed costs were $137,000.
Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each
varlance by selecting favorable, unfavorable, or no variance.)
Sales
Variable costs
Contribution margin
Fixed costs
Income
33
Flexible Budget Performance Report
Flexible
Actual
Budget
Results
S
S
689,000
62,400
626,600
Answer is not complete.
140,000
486,600
0
0
Variances
$ 47,000
34,000
81,000
15
7,000
74,000
Favorable!
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Favorable
Unfavorable
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