Homework Help is Here – Start Your Trial Now!
Business
Accounting
What is the cost volume variance? * Sample format: 111,111 F or 111,111 U

What is the cost volume variance? * Sample format: 111,111 F or 111,111 U

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

33

What is the cost volume variance? * Sample format: 111,111 F or 111,111 U National Co. produces and sells cellular phone blaster, a gadget which explodes when activated with a remote com mander. This is used by cell phone owners when their unit is snatched from them or is taken by thieves. The static master budget and the adu al results of operations for the month of June are as follows: Budget 8,000 units P800,000 480,000 P320.000 Adual Sales Cost of goods sold Gross profit 9,600 un its P1,056,000 556.800 P499.200 Management wants an expla ntation ofthe favorable gross profit variance of P179,200 (acual gross profit of P499,200 less budgeted gross profit of P320,000).
Transcribed Image Text:What is the cost volume variance? * Sample format: 111,111 F or 111,111 U National Co. produces and sells cellular phone blaster, a gadget which explodes when activated with a remote com mander. This is used by cell phone owners when their unit is snatched from them or is taken by thieves. The static master budget and the adu al results of operations for the month of June are as follows: Budget 8,000 units P800,000 480,000 P320.000 Adual Sales Cost of goods sold Gross profit 9,600 un its P1,056,000 556.800 P499.200 Management wants an expla ntation ofthe favorable gross profit variance of P179,200 (acual gross profit of P499,200 less budgeted gross profit of P320,000).
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS