Question

Zenefit Corporation sold laser pointers for $11 each in 2017. Its budgeted selling price was $12 per unit. Other information related to its performance is given​ below:

0 More Info B Units made and sold Variable costs Fixed costs Actual 28,000 90,000 55,000 udgeted 27,500 $3 per unit 58,000 $

Calculate Zenefit​'s ​flexible-budget and​ sales-volume variances for​ (a) revenues,​ (b) variable​ costs, (c) fixed​ costs, and​ (d) operating income.

Begin with the​ flexible-budget variance​ column, then the​ sales-volume variance column. Label each variance as favorable​ (F) or unfavorable​ (U). ​(For variances with a​ $0 balance, make sure to enter​ "0" in the appropriate field. If the variance is​ zero, do not select a​ label.)

Answer 1

Actual Results Fleaible Budget Flexible variance Budget Sales-volune variance static Budget 28000 27500 units sold | 28000 Revenues (sales) $308000 variable costs 90000 $336000 $28000 U 6000 u $6000 1500 4500 F $330000 82500 84000 34000 u 252000 F 247500 contribution 218000 Margin Fixed costs | 55000 operating income $163000 5 8000 3000 F 58000 $31000 U $194000 $4500 F $189500