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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 $

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
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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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.
Transcribed Image Text: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
Transcribed Image Text: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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