Sales Variances Presented is information pertaining to an item sold by Winding Creek General Store: Actual Budget 150 125 $26 $25 (20) $6 Unit sales Unit selling price Unit standard variable costs Unit contribution margin Revenues Variable costs $ $3,900 $3,125 (3,000) (2,500) Contribution margin at standard costs $ 900 $ 625 Compute the revenue, sales price, and the sales volume variances. Revenue variance Sales price variance $ LA (20) $5 4 Sales volume variance

Sales Variances Presented is information pertaining to an item sold by Winding Creek General Store: Actual Budget 150 125 $26 $25 (20) $6 Unit sales Unit selling price Unit standard variable costs Unit contribution margin Revenues Variable costs $ $3,900 $3,125 (3,000) (2,500) Contribution margin at standard costs $ 900 $ 625 Compute the revenue, sales price, and the sales volume variances. Revenue variance Sales price variance $ LA (20) $5 4 Sales volume variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

PLEASE ANSWER THE FOLLOWING QUESTIONS: Requirements 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Data table Budget for 2020 Selling Variable Cost Cartons Product Price per Carton Sold Kostor $11.00 $ Limba $ 23.00 $ 6.40 16.15 Actual for 2020 Selling Variable Cost Cartons Price per Carton Sold 7.40 138,600 16.35 59,400 132,000 $11.60 S 88,000 $ 24.40 $
Sales VariancesPresented is information pertaining to an item sold by Winding Creek General Store: Actual Budget Unit sales 135 110 Unit selling price $28 $23 Unit standard variable costs (20) (20) Unit contribution margin $8 $3 Revenues $3,780 $2,530 Standard variable costs (2,700) (2,200) Contribution margin at standard costs $1,080 $330 Compute the revenue, sales price, and the sales volume variances. Revenue variance Answer F U Sales price variance $Answer F U Sales volume variance $Answer F U
Problem 5. Angel Company is a wholesaler that sells a single product at P103.40 per unit. Its cost analyst has collated the necessary information for the gross profit analysis, comparing actual to budget for its product. The actual and budget data for the month of March of the current year show: Budgeted 6,000 P378,600 Actual Sales volume (units) Cost of goods sold 5,000 P315,500 Required: Present the gross profit variance analysis.
Samsung offers sales price discounts on some products. Samsung can use sales variance analysis to assess the effects of these sales discounts. Assumed data for one model of a Samsung television follow. TV Sales (units) Sales price per unit Budgeted 2,000 units $ 1,800 Actual 3,000 units $ 1,100 AQ = Actual Quantity AP Actual Price SP Standard Price SQ Standard Quantity Required: 1. & 2. Compute the sales price, sales volume and total sales variances and identify each as favorable or unfavorable. Actual Sales $ 0 Flexible Budget $ 10 10 $ 0 Fixed Budget
CompuWorld sells two products, R66 and R100, and calculates sales variances using the contribution margin. Pertinent data for the current year follow: Budgeted R66 Actual R100 $ 155 95 R100 R66 $ 50 40 $ 160 90 $ 55 43 Selling price Variable cost per unit Contribution margin Fixed cost per unit $ 10 6. $ 70 30 $ 60 25 $ 12 Operating income $ 4 $ 40 $ 7 $ 35 Sales in units 1,200 400 1,000 1,000 What is the R66 sales quantity variance? R66 sales quantity variance
Benson Company has provided the following Year 2 data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense BENSON COMPANY Internal Income Statement for Year 2 Budget Required Prepare a budgeted and actual Income statement for Internal use. Sales Variable expenses: Product costs $504,000 186,000 46,000 3,300 16,500 23,400 1,900 700 Selling expenses Other expenses Contribution margin Fixed expenses: Product costs Selling expenses Other expenses Operating income (loss) Interest expense Net income (loss) 8,600 Unfavorable 4,200 Favorable 2,300 Unfavorable 1,700 Unfavorable 310 Favorable 490 Favorable 190 Unfavorable 90 Favorable Actual
1. Prepare a Level 2 Variance Analysis and answer the following questions. Actual Results Static Budget 1,020 units 1,000 units Units Revenues Total Var Cost Total Contr Margin Fixed Cost a. b. asup C. d. e. f. 100 woll $110,160 $ 74,460 $100,000 $ 70,000 Iban Mato Xmaldor $ 19,600 Operating Income $ 16,100 $ 10,000 shot Describe precisely the meaning of the following variances from this Performance Report: Flexible Budget Variance for Revenues palodi sat osup a'lood pl BV smi vispicyng pors $ 20,000 Flexible Budget Variance for Tot Variable Cost Flexible Budget Variance for Fixed Cost Sales Volume Variance for Revenues Sales Volume Variance for Tot Variable Cost Sales Volume Variance for Fixed Cost B
asper Co has the following budget and actual figures for 20X4. Details Budget Actual Sales units 600 620 Selling price per unit $30 $29 Standard full cost of production = $28 per unit. Required: Calculate the selling price variance and the sales volume profit variance.
Oriole Industries has the following actual and master budget information for its two product lines: Volume in Units Unit Contribution Margin Sales quantity variance Gadgets Sales quantity variance Gizmos Actual Results Total sales quantity variance Gadgets Gizmos 1,150 1,870 $6 $9 Compute the Sales Quantity Variances for the Gadgets, Gizmos, and in Total. (Round intermediate calculations to 4 decimal places, eg. 2.3337 and final answers to O decimal places, e.g. 2,555.) $ $ tA Master Budget $ Gadgets 1,350 $5 Gizmos 1,770 $10 >
Find the values of the missing items (a) through (x). Assume the actual sales volume equals actual production volume. Marketing and Administrative Sales Price Variance Variance Units Sales Revenue Less: Variable Manufacturing Costs Variable marketing and administrative costs Contribution margin Fixed manufacturing costs Fixed marketing and administrative costs Operating Profit PreviousNext Reported income statement (based on actual sales volume) Manufacturing variance (a) (g) (n) (q) (r) (t) $4,320 $3,600 (0) $1,800 U $ 400 F (u) (p) (s) (v) (w) $3,600 F (X) $3,600 F Flexible Budget (based on actual sales volume (b) (h) (m) Sales Activity Variance 4,000 F (1) $19,200 (i) $4,800 $800 U $12,000 (k) $3,000 $4,000 (1) Master Budget (based on budgeted sales volume) 20,000 $30,000 (c) (d) (e) (f) $16,000 $10,000
Zachary Company has provided the following for the year. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Sales Variable expenses: Fixed expenses: $515,000 192,000 41,000 3,400 15,700 23,600 2,200 630 Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) $ 8,400 U 4,300 F 2,300 U 1,200 U 230 F 440 F 130 U 150 F ZACHARY COMPANY Internal Income Statement Budget 0 0 $ Actual 0 0 Variance Effect F U None
Question 4- Variance Analysis Required: The owners can see that the company sold a different amount of units than budgeted. They have asked vou to determine the flexible budget amounts and calculate the variances when comparing the flexible budget to the actual results S marksl. Flexible Budget Report Variance (show Static Flexible or Budget Budget Actual as positive Unfavorable Amount Amount Results amount) (U) Sales in Linits 6,500 6,200 Sales $ 650,000 650,000 Variable Cost 260,000 275,500 Foed Cost 26,000 25,000 Jet Operating Income 364 000 349,500