Clifford Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year. Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,327,040 Variable Cost of Goods Sold. . . . . . . . . . . . . $93,280 Variable Operating Expenses. . . . . . . . . . . . $133,760 Direct Fixed Manufacturing Overhead. . . . . $94,600 Direct Fixed Operating Expenses. . . . . . . . . $15,150 Common Fixed Expenses. . . . . . . . . . . . . . . $16,640 Budgeted data for the same time period for the pharmaceutical segment are as follows (all data are in millions): Budgeted sales in units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,800 Budgeted average selling price per unit. . . . . . . . . . . . . . . . . . . . . . $130 Variable Cost of Goods Sold per unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . $10 Variable Operating Expenses per unit. . . . . . . . . . . . . . . . . . . . . . . . $16 Direct Fixed Manufacturing Overhead (in total). . . . . . . . . . . . . . . . . . . $86,000 Direct Fixed Operating Expenses (in total). . . . . . . . . . . . . . . . . . . . . . . $15,000 Common Fixed Expenses Allocated to the Pharmaceutical Segment $16,000 Prepare a segment margin performance report for the pharmaceutical segment. Calculate a variance and a variance percentage for each line in the report. Round to the nearest hundredth for the variance percentages (for example, if your answer is 16.2384%, round it to 16.24%). Begin by preparing the performance report through the contribution margin line. Next, complete the report through the segment margin line, and then, finally, complete the report through the operating income line. (Enter the variances as positive numbers. Round the variance percentages to the nearest hundredth percent, X.XX%.)
Clifford Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year. Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,327,040 Variable Cost of Goods Sold. . . . . . . . . . . . . $93,280 Variable Operating Expenses. . . . . . . . . . . . $133,760 Direct Fixed Manufacturing Overhead. . . . . $94,600 Direct Fixed Operating Expenses. . . . . . . . . $15,150 Common Fixed Expenses. . . . . . . . . . . . . . . $16,640 Budgeted data for the same time period for the pharmaceutical segment are as follows (all data are in millions): Budgeted sales in units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,800 Budgeted average selling price per unit. . . . . . . . . . . . . . . . . . . . . . $130 Variable Cost of Goods Sold per unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . $10 Variable Operating Expenses per unit. . . . . . . . . . . . . . . . . . . . . . . . $16 Direct Fixed Manufacturing Overhead (in total). . . . . . . . . . . . . . . . . . . $86,000 Direct Fixed Operating Expenses (in total). . . . . . . . . . . . . . . . . . . . . . . $15,000 Common Fixed Expenses Allocated to the Pharmaceutical Segment $16,000 Prepare a segment margin performance report for the pharmaceutical segment. Calculate a variance and a variance percentage for each line in the report. Round to the nearest hundredth for the variance percentages (for example, if your answer is 16.2384%, round it to 16.24%). Begin by preparing the performance report through the contribution margin line. Next, complete the report through the segment margin line, and then, finally, complete the report through the operating income line. (Enter the variances as positive numbers. Round the variance percentages to the nearest hundredth percent, X.XX%.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Clifford Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year.
|
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
$1,327,040
|
|---|---|
|
Variable Cost of Goods Sold. . . . . . . . . . . . .
|
$93,280
|
|
Variable Operating Expenses. . . . . . . . . . . .
|
$133,760
|
|
Direct Fixed Manufacturing Overhead. . . . .
|
$94,600
|
|
Direct Fixed Operating Expenses. . . . . . . . .
|
$15,150
|
|
Common Fixed Expenses. . . . . . . . . . . . . . .
|
$16,640
|
|
Budgeted sales in units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
8,800
|
|---|---|
|
Budgeted average selling price per unit. . . . . . . . . . . . . . . . . . . . . .
|
$130
|
|
Variable Cost of Goods Sold per unit. . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
$10
|
|
Variable Operating Expenses per unit. . . . . . . . . . . . . . . . . . . . . . . .
|
$16
|
|
Direct Fixed Manufacturing Overhead (in total). . . . . . . . . . . . . . . . . . .
|
$86,000
|
|
Direct Fixed Operating Expenses (in total). . . . . . . . . . . . . . . . . . . . . . .
|
$15,000
|
|
Common Fixed Expenses Allocated to the Pharmaceutical Segment
|
$16,000
|
Begin by preparing the performance report through the contribution margin line. Next, complete the report through the segment margin line, and then, finally, complete the report through the operating income line. (Enter the variances as positive numbers. Round the variance percentages to the nearest hundredth percent, X.XX%.)
Transcribed Image Text:Begin by preparing the performance report through the contribution margin line. Next, complete the report through the segment margin line, and then, finally, complete the report through the operating income line. (Enter the variances as positive numbers.
Round the variance percentages to the nearest hundredth percent, X.XX%.)
Performance Report
Clifford - Pharmaceutical Segment
For Fiscal Year Ending December 31
Actual
Bugeted
Variance
Variance %
Sales
%
Less Variable Expenses:
Variable Cost of Goods Sold
%
Variable Operating Expenses
Contribution Margin
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