Complete the following flexible budget and suggest one possible explanation for each of the variances. Master...
Complete the following flexible budget and suggest one possible explanation for each of the variances.
|
Master Budget |
Flexible budget |
Actual Results |
|||||
|
Sales volume (in units) |
20,000 |
18,500 |
|||||
|
Sales Revenue |
$1,050,000 |
$972,000 |
|||||
|
Variable costs |
500,000 |
477,000 |
|||||
|
Contribution margin |
550,000 |
495,000 |
|||||
|
Capacity-related (fixed) costs |
380,000 |
385,000 |
|||||
|
Operating profit |
$170,000 |
$110,000 |
Homework Answers
| Master Budget | Per Unit | Flexible | Actual | ||
| Budget | Results | ||||
| Sales Volume (in Units) | 20000.00 | 18500.00 | 18500.00 | ||
| Sales Revenue | $1,050,000.00 | $52.50 | $971,250.00 | $972,000.00 | |
| (1050000/20000) | (52.50*18500) | ||||
| Variable Costs | $500,000.00 | $25.00 | $462,500.00 | $477,000.00 | |
| (500000/20000) | (25*18500) | ||||
| Contribution Margin | $550,000.00 | $27.50 | $508,750.00 | $495,000.00 | |
| (52.50-25) | (27.50*18500) | ||||
| Capacity Related Fixed Costs | $380,000.00 | $380,000.00 | $385,000.00 | ||
| Operating Profit | $170,000.00 | $128,750.00 | $110,000.00 | ||
| Thanks & Regards | |||||
| Hoping for a Positive Response | |||||
Add Answer to:
Complete the following flexible budget and suggest one possible
explanation for each of the variances.
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Complete the following Flexible Budget Performance Report. Interpret your results. Remember on the variances to put...
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Use this flexible budget report for questions 7-11 Flexible Actual Budget Results Sales $960,000 $972,000 Variable...
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Complete the following Flexible Budget Performance Report. Interpret your results. Remember on the variances to put Favorable (F) or Unfavorable (U) Flexible i e Flexible Volume Master Actual Budget B. Budget Variance Budget Variance Sales 57,500 57,500 53,000 Volume Sales Revenue $206,500 ($3.50 per unit) Less: Variable Expenses $83,200 ($1.40 per unit) Contribution $123,300 Margin Less: Fixed $65,500 $64,000 Expenses Operating $57,800 Income
3. ABC Company has the master/static budget and actual of operating result (2015) as shown beloW. ABC Company Operating Results For year 2015 Master Budget 20,000 1,000,000 500,000 Actual Variance Units sold Revenue Variable cost Variable production overhead 15,000 742,500 390,000 160,000500 32,500 F 225,000 5,000 U 257,500 U 110,000 F 115,000 U 5,000 F 110,000 U Contribution margin Fixed production overhead Operating income 340,000 150,000 190,000 45,000 80,000 3.1 Prepare a flexible budget for ABC Company for vear 2015...
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Complete the flexible budget variance analysis by filling in the blanks in the partial flexible budget performance report for 11,000 travel locks for Gianni, Inc. B (Click the icon to view the report) (For variances with a $0 value, make sure to enter "O" in the appropriate cells.) i Data Table Gianni, Inc. Flexible Budget Performance Report (partial) For the Month Ended April 30, 2018 Actual Flexible Budget Results Variance Units 11,000L Sales Revenue S 209,000 Variable Costs 51,900 Contribution...
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