Question

Nicholas Company manufacturers TVs. Some of the company's data was misplaced. Use the following information to replace the lost data: Analysis Units Sold Sales- Actual Flexible Flexible Volume Static Results Variances Budget Variances Budget 112,500 $42,080 $1,000 F (A) $1,400 U (B) (C) $200 U $15,860 $8,280 $9,140 Revenues Variable Costs Fixed Costs Operating Income $17,740 (D) (E) Required: a. What are the respective flexible-budget revenues (A)? b. What are the static-budget revenues (B)? C. What are the actual variable costs (C)? d. What is the total flexible-budget variance (D)? e. What is the total sales-volume variance (E)? MacBook Air

Answer 1

Answer

Actual Static Sales /Production(Units) Revenues Variable costs Flexible Budget Variance 112,500 42,080 1,000 16,060 200 8,280 860 17,740 1,660 F U Sales - Flexible Volume Budget Variance 112,500 41,080 1,400 15,860 541 9,140 16,080 859 $ 0.14 $ 0.37 U F F N 116,334.00 42,480 16,401 9,140 16,939 0.14 0.37 F Fixed overhead Operating income Revenue per unit Variable cost per unit A= B= U $ $ C= $ $ $ $ $ 41,080 42,480 16,060 1,660 F 859 U D= E= Alternatively Actual Flexible Budget Variance 112,500 42,080 1,000 16,060 200 8,280 860 17,740 1,660 F U Sales - Flexible Volume Budget Variance 112,500 41,080 1,400 15,860 540 9,140 16,080 860 $ 0.14 $ 0.37 U F Sales /Production(Units) Revenues Variable costs Fixed overhead Operating income Revenue per unit Variable cost per unit A= B= Static 116,333.00 42,480 16,400 9,140 16,940 $ 0.14 $ 0.37 F N F U $ $ C= $ $ 41,080 42,480 16,060 1,660 F 860 U D= E= $