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: (Click the icon to view the information.) (Click the icon to view the partially completed performance report.) 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.) Actual Flexible-Budget Flexible Sales-Volume Variance Variance Results 28,000 Budget 28,000 Static Budget 27,500 Units sold Revenues (sales) $ $ N $ 308,000 90,000 336,000 84,000 330,000 82,500 Variable costs Contribution margin 218,000 55,000 252,000 58,000 247,500 58,000 Fixed costs 163,000 IN $ 194,000 189,500 Operating income

Answer 1

Actual Results 28000 Flexible-Budget Variances Flexible Budget 28000 Sales-Volume Variances Static Budget 27500 Units sold Revenues (sales) Variable costs Contribution margin Fixed costs Operating income 308000 90000 218000 55000 163000 28000 6000 34000 3000 310000 336000 84000 252000 58000 194000 6000F 1500 4500 O None 4500 F 330000 82500 247500 58000 189500