Question

E7-24 (similar to) The Utica Company produces engine parts for car manufacturers. A new accountant intern at Utica has accidentally deleted the table is what remains of the data. Click the icon to view the data.) Read the requirements. Requirement 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance i Begin with the flexible budget columns, then the sales volume variance column. Label each variance as favorable (F) or unfavo not select a label. Round your answers to the nearest whole dollar.) Flexible-Budget Variance Flexible Budget Actual Results 103,000 695,250 480,000 Units sold Revenues (sales) Variable costs Contribution margin Fixed costs Operating income 215,250 201,750 13,500 Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

PERFORMANCE REPORT YEAR ENDED DECEMBER 31 ,2017
	Actual results [A]	Flexible budget variance [A-B]	Flexible budget [B]	sales volume variance [C-B]	Static budget[C]
Unit sold	103000	0 NA	103000	4000 F	99000
Revenue	695250	324450 F	103000*3.6=370800	14400 F	356400
variable cost	480000	263700 U	103000*2.1 = 216300	8400 U	207900
contribution margin	215250	60750 F	154500	6000 F	148500
Fixed cost	201750	66750 U	135000	0 NA	135000
operating income	13500	6000 U	19500	6000 F	13500

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Standard selling price per unit = 356400/99000= 3.6

Standard variable cost per unit = 207900/99000= 2.1

If actual revenue greater than flexible budget revenue result is favorable and vise versa

If actual cost is greater than flexible budget cost result is unfavorable and vise versa.

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If Flexible budget revenue is greater than static budget revenue result is favorable and vise versa

If flexible budget cost is greater than static budget cost result is unfavorable and vise versa.