Question

XYZ Company's budgeted and actual results for last year are as follows:

	Master budget	Actual results
Price	$600	$700
Sales volume (units)	7,000	5,000
Unit VC	$200	$200
Fixed costs	$200,000	$200,000

Required:

(a) Compute budgeted and actual revenue, costs and profits:

	Master budget	Actual
Sales volume (units)
Revenue	$	$
Variable costs	$	$
Contribution margin	$	$
Fixed costs	$	$
Profit	$	$

In (b)-(d) below, enter favorable and unfavorable variances as positive and negative numbers, without F or U.

(b) How much is the total profit variance?
(enter negative numbers with a minus, i.e. enter negative $100 as -100 not ($100) ) $

(c) How much is the activity variance(=sales volume variance)?
(enter negative numbers with a minus) $

(d) How much is the revenue variance (=sales price variance)?
(enter negative numbers with a minus) $

Answer 1