Matthew works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and bootstypically sell for $97 and $192 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the companyexpected to sell 760 pairs of clogs and 240 pairs of boots. The variable cost per pair was $52 for clogs and $78 for boots.At the end of the year, Matthew evaluated the company's sales and contribution margin amounts against the budget. Actual results forthe year were as follows....(a)Actual sales volume: clogs, 869; boots, 231.Actual selling price: clogs, $108 per pair; boots, $181 per pair.Actual per-unit variable costs for each product were the same as budgeted.Your answer is correct. Your answer is correct.For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1)master budget, (2) flexible budget, and (3) actual income statement.(b)Total revenuesTotal variable costs$Total contribution margin $Sales price variance $$Sales activity variance $Master Budget119,80058,24061,560$$$Flexible Budget128,64563,20665,439$$$Actual135,66363,206Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each.72,457

Sales price variance is the difference between actual and estimated units selling price multiplied…

Answered: Calculate the company's sales price…

Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each. Sales price variance $ Sales activity variance $

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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Question

Matthew works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots
typically sell for $97 and $192 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company
expected to sell 760 pairs of clogs and 240 pairs of boots. The variable cost per pair was $52 for clogs and $78 for boots.
At the end of the year, Matthew evaluated the company's sales and contribution margin amounts against the budget. Actual results for
the year were as follows.
.
.
.
(a)
Actual sales volume: clogs, 869; boots, 231.
Actual selling price: clogs, $108 per pair; boots, $181 per pair.
Actual per-unit variable costs for each product were the same as budgeted.
Your answer is correct.

Your answer is correct.
For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1)
master budget, (2) flexible budget, and (3) actual income statement.
(b)
Total revenues
Total variable costs
$
Total contribution margin $
Sales price variance $
$
Sales activity variance $
Master Budget
119,800
58,240
61,560
$
$
$
Flexible Budget
128,645
63,206
65,439
$
$
$
Actual
135,663
63,206
Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each.
72,457

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This Is Accounting Question Don't Use Chat GPT
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