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CALCULATOR PRINTER VERSION BACK NEXT Exercise 6-5 Bonita manufactures aluminum canoes. In planning for the coming year, CFO A
CALCULATOR PRINTER VERSION BACK NEXT Fixed overhead Total 120,870 $2,010,370 Prepare a performance report for the year that s
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Answer #1
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget
Unit sales 3100 0 Not Applicable 3100 100 F 3000
Sales (3100*$859)= $2662900 (2507900-2662900)= 155000 F   (3100*$809)= $2507900 (2427000-2507900)= 80900 F (3000*$809)= $2427000
Less: Variable expenses
Direct materials 1036300 (1047800-1036300)= 11500 F (3100*$338)= 1047800 (1014000-1047800)= 33800 U (3000*$338)= 1014000
Direct labor 453800 (480500-453800)= 26700 F (3100*$155)= 480500 (465000-480500)= 15500 U (3000*$155)= 465000
Variable overhead 399400 (387500-399400)= 11900 U ($35+30+60)*3100= 387500 (375000-387500)= 12500 U ($35+30+60)*3000= 375000
Total variable expenses (1889500) 26300 F (1915800) 61800 U (1854000)
Contribution margin 773400 181300 F 592100 19100 F 573000
Fixed overhead (120870) (113570-120870)= 7300 U (113570) 0 Not Applicable (113570)
Net operating income $652530 174000 F $478530 19100 F $459430

Fixed overhead of flexible and static budget= $18610+39800+25870+29290= $113570

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