What is the sales volume variance for total revenue on these accounting question? Zany projected current year sales of 50,000 units at a unit sale priceof $20.00. Actual current year sales were 55,000 units at $22.00 perunit. Actual variable costs, budgeted at $15.00 per unit, totaled$14.00 per unit. Budgeted fixed costs totaled $400,000, while actualfixed costs amounted to $420,000. What is the sales volume variancefor total revenue?A. $100,000 unfavorableB. $100,000 favorableC. $110,000 favorableD. $110,000 unfavorable

Step 1:The sales volume variance is calculated as follows: Sales volume variance = (Actual sales…

Answered: Zany projected current year sales of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 17EB: The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per...

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Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a.Compute the normal revenue with a 20 selling price. b.Compute the planned revenue with a 19 selling price. c.Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d.Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e.Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f.Analyze and interpret the lowering of the price to 19.
Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per month. How much is the favorable or unfavorable variance if 14,000 units were produced for a total of $97,000?
Marathon Sports Equipment Company projected sales of 79,000 units at a unit sales price of $12 for the year. Actual sales for the year were 74,000 units at $14 per unit. Variable costs were budgeted at $3 per unit, and the actual amount was $6 per unit. Budgeted fixed costs totaled $377,000, while actual fixed costs amounted to $415,000. What is the sales volume variance for total revenue? ..... O A. $88,000 favorable O B. $60,000 favorable O C. $60,000 unfavorable O D. $88,000 unfavorable
Top managers of Rouse Industries predicted 2025 sales of 14,900 units of its product at a unit price of $10.00. Actual sales for the year were 14,000 units at $13.00 each Variable costs were budgeted at $3.60 per unit, and actual variable costs were $3.70 per unit Actual fixed costs of $49,000 exceeded budgeted fixed costs by $2,500. Prepare Rouse Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances (Enter a 0 for any zero balances. Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter For any $0 variances, leave the Favorable (F)/Unfavorable (U) input field blank.) Units Sales Revenue Variable Costs…
Midnight Sun Outfitters projected sales of 76,000 units for the year at a unit sales price of $12.00. Actual sales for the year were 72,000 units at $15.00 per unit. Variable costs were budgeted at $4.50 per unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $378,000, while actual fixed costs amounted to $410,000. What is the sales volume variance for operating income? Group of answer choices $30,000 favorable $166,000 unfavorable $30,000 unfavorable $136,000 unfavorable
Top managers of Cole Industries predicted 2018 sales of 14,600 units of its product at a unit price of $7.00. Actual sales for the year were 14,000 units at $10.50 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $43,000 exceeded budgeted fixed costs by $4,500. Prepare Cole's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Cole Industries Flexible Budget Performance Report For the Year Ended December 31, 2018 1 2 3 4 5…
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Texas Company has prepared the flexible budget formula for production costs: costs= 340,000 + 9X, where X is the number of units produced. Texas produced 20,000 units at a cost of P490,000. What is the variance of actual costs from budgeted costs (i.e ., budget variance)?
Sanford Company original assumptions for the planning budget were: Total sales = $160,000, sale price = $20.00, and contribution margin ratio = 40.0%. Actual results were: Total sales = $168,100, sale volume = 8,200 units, and contribution margin ratio = 35.0%. Compute the sales volume variance.
Benefit Pillow Company projected sales of 76,000 units for the year at a unit sales price of $13.00. Actual sales for the year were 72,000 units at $20 per unit. Variable costs were budgeted at $4.50 per unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $377,000 while actual fixed costs amounted to $400,000. What is the flexible budget variance for operating income? A. $463,000 unfavorable OB. $235,000 unfavorable OC. $463,000 favorable D. $486,000 favorable CZER
Fronteeth Corp. plans to sell 500,000 units of a product at a price of P19.50 per Fixed costs for the period have been budgeted at P750,000. The profit after tax has been budgeted at P480,000 with an income tax rate of 40%, In order to meet the above requirements, how much should be the variable cost per unit?

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