Question

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uni G (ACC 291/292) ACKNEXT 3,000 canoes, and 3,500 canoes. Canoes sell for Bramble manufactures aluminum canoes. In planning for the coming year, CFO Nexis King is considering three different sales targets: 2,500 canoes, 5804 each. The standard variable cost infoemation for a canoe is as follows Direct materials $334 Direct labor Indirect material 30 Rent Total 28,050 $110,860 Alexis king chose to prepare a static budget based on sales of 3,000 canoes. Actual sales were 3,100 canoes at a price of $854 each. The company incurred the following costs Direct material $1,012,000 573,200 398,000

Answer 1

	Actual	Flexible budget variance		Flexible budget	Volume variance		Planning budget	Per unit cost
Production	3100			3100			3000
Sales revenue	2647400	155000	F	2492400	80400	F	2412000	804
Variable expense
Material	1012000	23400	F	1035400	33400	U	1002000	334
Labor	573200	28200	F	601400	19400	U	582000	194
Variable manufacturing overheads	398000	10500	U	387500	12500	U	375000	125
Total variable expense	1983200	41100	F	2024300	65300	U	1959000	653
Contribution margin	664200	196100	F	468100	15100	F	453000	151
Fixed expense	119160	8300	U	110860	0		110860
Net operating income	545040	187800	F	357240	15100	F	342140