13 14 15 Number of units 16 Differential revenue 17 Unit-level costs 18 Materials 19 Labor 20 Supplies 21 Batch-level costs 22 Total cost 23 Contribution to income 24 Relevant Information for Special Order 2,000 1,500 X 1,500 X 1,500✔ X 1,500 X 2 X $12.00 $2.40 $3.20 $1.20 $5,000 11 11 || $3,600 $4,800 $1,800 $10,000 $18,000 $20,200 $(2,200)
13 14 15 Number of units 16 Differential revenue 17 Unit-level costs 18 Materials 19 Labor 20 Supplies 21 Batch-level costs 22 Total cost 23 Contribution to income 24 Relevant Information for Special Order 2,000 1,500 X 1,500 X 1,500✔ X 1,500 X 2 X $12.00 $2.40 $3.20 $1.20 $5,000 11 11 || $3,600 $4,800 $1,800 $10,000 $18,000 $20,200 $(2,200)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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am. 112.

Transcribed Image Text:13
14
15 Number of units
16 Differential revenue
17 Unit-level costs
18
Materials
19
Labor
20 Supplies
21 Batch-level costs
22 Total cost
23 Contribution to income
24
Relevant Information for Special Order
2,000 X
1,500
X
1,500 X
1,500 X
1,500
X
2
X
$12.00
$2.40
$3.20
$1.20
$5,000
11
||
11
||
=
$3,600
$4,800
$1,800
$10,000
$18,000
$20,200
$(2,200)

Transcribed Image Text:Dorina Company makes cases of canned dog food in batches of 1,000 cases and sells each case for $15. The plant capacity is 50,000 cases; the company
currently makes 40,000 cases. Doggie - Mart has offered to buy 1, 500 cases for $12 per case. Because product - level and facility-level costs are unaffected
by a special order, they are omitted. Required Complete the spreadsheet to calculate the contribution to income if the special order is accepted. Construct
formulas so that the number of cases or the price could be changed and the new contribution would be automatically calculated. How would I put in Excel
cell the "Number of Units" for it to be 2000?
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