Question

In September, Larson Inc. sold 40,000 units of its only product for $262,000, and incurred a...

In September, Larson Inc. sold 40,000 units of its only product for $262,000, and incurred a total cost of $245,000, of which $27,000 was fixed costs. The flexible budget for September showed total sales of $320,000. Among variances for the period were: total variable cost flexible-budget variance, $6,000U; total flexible-budget variance, $67,000U; and, sales volume variance, in terms of contribution margin, $29,000U.

The master budget operating income for September, to the nearest dollar, was:

SHOW ALL WORK

Homework Answers

Answer #1

Flexible-budget sales = $320,000 (given)

Total variable cost flexible-budget Variance = Actual total variable costs -flexible-budget variable costs

Actual variable costs = ($245,000 - $27,000) = $218,000.

Flexible-budget variable costs = $218,000 -$6,000U variance = $212,000

flexible-budget contribution margin= 320,000 -212,000 =108,000

Total flexible-budget variance = actual operating income -flexible-budget operating income.

Actual operating income = actual sales revenue -actual costs

=262000-245,000= $17,000

Therefore, Budget operating income = 17,000+ 67,000 =$84,000

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a...
In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000, of which $25,000 is fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The total sales revenue in the master budget for September was? The total number of budgeted units reflected...
In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a...
In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 was fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The budgeted fixed cost for September, to the nearest dollar, was: a: $30,000 b: $45,000 c: $71,000 d:...
In September, Larson Inc. sold 45,000 units of its only product for $438,000, and incurred a...
In September, Larson Inc. sold 45,000 units of its only product for $438,000, and incurred a total cost of $375,000, of which $43,000 were fixed costs. The flexible budget for September showed total sales of $450,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $75,000U; and, sales volume variance, in terms of contribution margin, $56,000U. The total sales revenue in the master budget for September, to the nearest dollar, was: SHOW ALL WORK
In September, Larson Inc. sold 41,500 units of its only product for $405,000, and incurred a...
In September, Larson Inc. sold 41,500 units of its only product for $405,000, and incurred a total cost of $375,000, of which $40,000 were fixed costs. The flexible budget for September showed total sales of $450,000. Among variances of the period were: total variable cost flexible-budget variance, $9,500U; total flexible-budget variance, $78,000U; and, sales volume variance, in terms of contribution margin, $42,000U. The total number of budgeted units reflected in the master budget for September, to the nearest whole number,...
In September, Larson Inc. sold 45,000 units of its only product for $306,000, and incurred a...
In September, Larson Inc. sold 45,000 units of its only product for $306,000, and incurred a total cost of $285,000, of which $31,000 was fixed costs. The flexible budget for September showed total sales of $360,000. Among variances of the period were: total variable cost flexible-budget variance, $6,500U; total flexible-budget variance, $75,000U; and, sales volume variance, in terms of contribution margin, $33,000U. The budgeted fixed cost for September, to the nearest dollar, was: Multiple Choice $117,000. $37,500. $16,500. $81,500. $96,000.
Question 1: Patty, Inc. wishes to evaluate, in summary fashion, its financial performance for the most...
Question 1: Patty, Inc. wishes to evaluate, in summary fashion, its financial performance for the most recent period. Budgeted and actual operating results for this period are presented below. Master Budget Actual Results Units sold 40,000 36,000 Sales $ 2,000,000 $ 1,900,000 Variable costs $ 1,200,000 $ 1,152,000 Fixed costs $ 600,000 $ 660,000 Calculate (to the nearest dollar): Indicate favorable / unfavorable variances and the meaning of the variance: 1. What is the flexible-budget operating income for the period?...
3. The Omega Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use...
3. The Omega Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2018 are as follows: Static Budget ZENITH House-Helper Total Number sold 15,000 60,000 75,000 Contribution margin $3,750,000 $12,000,000 $15,750,000 Actual Results ZENITH House-Helper Total Number sold 16,500 38,500 55,000 Contribution margin $6,200,000 $10,200,000 $16,400,000 Assume that Omega Corporation operates in Midwest market. The total Midwest market is expected to be 500,000...
Samson Inc. prepared a budget last period that called for sales of 40,000 units at a...
Samson Inc. prepared a budget last period that called for sales of 40,000 units at a price of $25 each. The costs per unit were estimated to amount to $13 variable and $6 fixed. During the period, production was equal to actual sales of 38,000 units. The selling price was $26 per unit. Variable costs were $13.25 per unit. Fixed costs actually incurred were $250,000. Required: a) Prepare a report to show the difference between the actual contribution margin per...
The total variable cost flexible-budget variance for any given period: Multiple Choice Is directly affected by...
The total variable cost flexible-budget variance for any given period: Multiple Choice Is directly affected by the difference between actual sales volume and the sales volume embodied in the flexible budget. Is decomposable into production-volume and production-mix components. Can be broken down into flexible-budget variances for major costs such as materials, labor, variable overhead, and variable selling expenses. Is decomposable into sales-volume and sales-mix components. Is the difference between actual total variable cost incurred and master budgeted total variable cost.
Hyson Inc. manufactures and sells produces. The master budget and the actual results for July are...
Hyson Inc. manufactures and sells produces. The master budget and the actual results for July are as follows: Actual July Sales Master Budget Un it sales 12,000 10,000 Sales $132,000 $100,000 Variable costs $70,800 $60,000 Contribution margin $61,200 $40,000 Fixed costs $30,000 $25,000 Operating income $31,200 $15,000 If flexible budgeting is used, how much is contribution margin per unit based on actual sales of 12,000 units? (A) $4.00 (B) $5.10 (C) $4.55 (D) None of the above How much is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT