Question

Find the values of the missing items. Assume that the actual sales volume equals actual production...

Find the values of the missing items. Assume that the actual sales volume equals actual production volume. (There are no inventory level changes.) (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Reported Income Statement (2500 units) Manufacturing Variance Marketing and Admin Variance Sales price variance Flexible budget (2500 units) Sales Activity Variance

Master Budget (2700 units)

Sales Revenue 125000 10000 135000 ?
Variable manfufactring costs ? 3750 2960 ?
Variable Maretings and Admin Costs ? ? ? ? 16200
Contriubtion Margin 79450 ? ? 10000 ? ? ?

Homework Answers

Answer #1
Reported Income Statement ( 2,500 Units) Manufacturing Variance Marketing and Admin Variance Sales Price Variance Flexible Budget ( 2,500 Units) Sales Activity Variance Master Budget ( 2,700 Units)
Sales Revenue 125,000 10,000 U 135,000 10,800 U 145,800
Variable Manufacturing Costs 33,250 3,750 F 37,000 2,960 F 39,960
Variable Marketing and Admin Costs 12,300 2,700 F 15,000 1,200 F 16,200
Contribution Margin 79,450 3,750 F 2,700 F 10,000 U 83,000 6,640 U 89,640
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