Question

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The master budget at Western Company last period called for sales of 225,900 units at $9.9 each. The costs were estimated to be $3.84 variable per unit and $225,900 fixed. During the period, actual production and actual sales were 230,900 units. The selling price was $10.00 per unit. Variable costs were $5.40 per unit. Actual fixed costs were $225,900. Required: Prepare a sales activity variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) WESTERN COMPANY Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin Less Fixed costs Operating profits

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Answer 1

1)Here multiple questions posted and as per HomeworkLib policy we have to solve first one
The flexible budget is calculated using the actual units sold. The master budget us calculated using the units budgeted

Flexible budget 2,285,910 Sales activity varaince 49,500F Master Budget 2,236,410 Sales Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating margin 886,656 1,399,254 19,200 U 30,300F 867,456 1,368,954 225,900 1,173,354 225,900 1,143,054 30,300F

Sales Master Budget =B2-E2 F-225900*9.9 Flexible budget 2 Sales Revenue | =230900*9.9 3 Less: 4 Variable costs =230900*3.84 5 Contribution margin =B2-B4 6 Less: 7 Fixed costs 225900 8 Operating margin =B5-B7 =B4-E4 U =B5-E5 F =225900*3.84 =E2-E4 -B7-E7225900 =B8-E8 F =E5-E7