Blossom Industries has the following actual and master budget information for its two product lines:Volume in UnitsUnit Contribution MarginActual ResultsSales quantity variance GizmosGadgets1,110$4Sales quantity variance Gadgets $Total sales quantity variance$Gizmos$1,830$7Master BudgetCompute the Sales Quantity Variances for the Gadgets, Gizmos, and in Total. (Round intermediate calculations to 4 decimal places, eg.2.3337 and final answers to O decimal places, e.g. 2,555.)Gadgets1,310$3Gizmos1,730$8V

Variance analysis is a costing tool to identify the deviations in the budget prepared as per the actual results so that the budget can be revised if needed. Sales quantity variance is calculated by taking the difference between the actual quantity and the budgeted quantity and multiplying the difference with the budgeted contribution per unit in the case of the marginal costing or budgeted profit per unit in the case of the absorption costing as per the given data.Calculation: Formula snip:

Business

Accounting

Blossom Industries has the following actual and master budget information for its two product lines: Volume in Units Unit Contribution Margin Sales quantity varianceGadgets Sales quantity variance Gizmos Actual Results Gadgets Total sales quantity variance 1,110 $4 $ $ Gizmos $ 1,830 $7 Compute the Sales Quantity Variances for the Gadgets, Gizmos, and in Total. (Round intermediate calculations to 4 decimal places, eg. 2.3337 and final answers to O decimal places, e.g. 2,555.) Master Budget Gadgets Gizmos 1,310 $3 1,730 $8

Blossom Industries has the following actual and master budget information for its two product lines: Volume in Units Unit Contribution Margin Sales quantity varianceGadgets Sales quantity variance Gizmos Actual Results Gadgets Total sales quantity variance 1,110 $4 $ $ Gizmos $ 1,830 $7 Compute the Sales Quantity Variances for the Gadgets, Gizmos, and in Total. (Round intermediate calculations to 4 decimal places, eg. 2.3337 and final answers to O decimal places, e.g. 2,555.) Master Budget Gadgets Gizmos 1,310 $3 1,730 $8

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ray Company provided the following excerpts from its Production Department's flexible budget performance report. Required: Complete the Production Department's Flexible Budget Performance Report. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round "rate per hour" answers to 2 decimal places.) Labor-hours (q) Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory administration Total expense $ 6,500 78,400 $ 18,700 (q) + + + + Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Results $ 1.50 (9) (q) (q) GA 1.90 (q) 9,480 $ 134,730 SA 4,940 288,088 Spending Variances 1,780 F 1,450 U 0 None Flexible Budget $ 132,720 21,640 4,444 Activity Variances 336 U 0 None Planning Budget 9,000 12,800 4,300
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Ray Company provided the following excerpts from its Production Department's flexible budget performance report. Required: Complete the Production Department's Flexible Budget Performance Report. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round "rate per hour" answers to 2 decimal places.) Labor-hours (q) Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory administration. Total expense $ 7,100 $ 79,900 $ 18,820 (q) + + + + Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Results $ 1.50 (q) (9) (9) $ 1.50 (q) 9,540 $164,250 5,024 $ 322,066 Spending Variances 1,840 F 1,510 U 0 None Flexible Budget $ 162,180 21,790 4,504 Activity Variances 624 U 0 None Planning Budget 9,060 18,878 4,360
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