ank Assistant Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2020 included these data: The budgeted amounts for September 2020 were: Number of checkbooks 20,000 Selling price per book $25 Variable cost per book $6 Fixed costs for the month $125,000 The actual results for September 2020 were as follows: Number of checkbooks produced and sold 16,900 Average selling price per book $27 Variable cost per book $5 Fixed costs for the month $131,000 Prepare a static-budget-based variance analysis of the September performance. Begin with the actual results, then compute the static budget and the static-budget variances. Label each variance as favorable or unfavorable.? Units sold Revenues Variable costs Contribution margin Fixed costs Operating income (loss)
ank Assistant Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2020 included these data: The budgeted amounts for September 2020 were: Number of checkbooks 20,000 Selling price per book $25 Variable cost per book $6 Fixed costs for the month $125,000 The actual results for September 2020 were as follows: Number of checkbooks produced and sold 16,900 Average selling price per book $27 Variable cost per book $5 Fixed costs for the month $131,000 Prepare a static-budget-based variance analysis of the September performance. Begin with the actual results, then compute the static budget and the static-budget variances. Label each variance as favorable or unfavorable.? Units sold Revenues Variable costs Contribution margin Fixed costs Operating income (loss)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ank Assistant
Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September
2020
included these data:
The budgeted amounts for September
2020
were:|
Number of checkbooks
|
20,000
|
|---|---|
|
Selling price per book
|
$25
|
|
Variable cost per book
|
$6
|
|
Fixed costs for the month
|
$125,000
|
The actual results for September
2020
were as follows:|
Number of checkbooks produced and sold
|
16,900
|
|---|---|
|
Average selling price per book
|
$27
|
|
Variable cost per book
|
$5
|
|
Fixed costs for the month
|
$131,000
|
Prepare a static-budget-based variance analysis of the September performance.
Begin with the actual results, then compute the static budget and the static-budget variances. Label each variance as favorable or unfavorable.?
Units sold
Revenues
Variable costs
Contribution margin
Fixed costs
Operating income (loss)
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