Question

Homework: 4-1 MyAccountingLab Homework: Chapters 6-8 Score: 0 of 5 pts HW Score: 0% 0 of 45 E7-24 (similar to) İ Question Help The Liberty Company produces engine parts for car manufacturers A newr accountant interm at Liberty has accidentally deleted the calculations on the company's variance analysis calculatiorns for the year ended Decemer 31. 2017. The following table is what remains of the data (Click the icon to vew the data Read the teqirements Requirement 1. Calculate all the required variances (ff your work is accurate, you will find that the total static-budget varlance is 50) Begih wth the fexible budget columes, then the sales volume variance column. Label each variance as favorable (F) or unfavorable (U) (For variances with a50 balance, make sure toner " variance is zero, do not select a label Round your ansuers to the nearest whole delar) in the appropriate Seld h the ActualFlexible-Budget Flexible Budget Variance Units sold Revenes (sales)683,700 440 00 □ Variable costs Contibution margi 243 700 137 700 Fixed costs hoose from any list or enter any number in the input fields and then click Check Answer Clear All Check Answer e dai Data Table Performance Report Year Ended December 31,2017 Flexible-Budget Actual Sales Volume Static Flexible Variances Budget your Results Variances Budget 93,000 106,000 Units sold Vari Revenues (sales) 683,700 440,000 S 334,800 148,800 Variable costs Contribution margin 243,700 186,000 137,700 80,000 Fixed costs 106,000 Operating income0000 106,000 the Print Done Requirements is alance, make su an ne 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is S0.) 2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here? Fl Print Done d then click Check Answer

Answer 1

Actual 4) -(35) C3) 381 600 (ote-A) 46,800 F 281600- 334800) 334 800 | 202)100 63a0o 2s1600) あ633,700 Revenue> 48,800 Jto- 16600) 86,000 212,000 2600 р 승0,000 Bo,ooD 26600 F 06 O00 132,00O 06,O Oo

Levn 330 Ohilb sold |$ 38,600 645 r カ4tse thinうHrta, beribk.btbet α건 totul &k Yolun s onu

A closer look at the variance components reveals some major

deviations from plan. Actual variable costs increased from $ 1.6 to $ 4.15 causing unfavorable flexible budget variables cost variance of

$169,600 .such increase could be results....