Brief Exercise 14-16 (Algo) Davidson Corporation produces a single product... [LO 14-3]Davidson Corporation produces a single product: fireproof safety deposit boxes for home use. The budget going into the current yearanticipated a selling price of $63 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during theyear. Budgeted variable costs per unit are $40, and budgeted total fixed costs are $160,000 for the year. Anticipated sales volume forthe year was 14,000 units. Actual sales volume was 5% less than budget. (1) What was the sales price variance for the year? (2) Labelthis variance F (favorable) or U (unfavorable), as appropriate. (Do not round intermediate calculations.)Sales price variance$16,150 Unfavorable Brief Exercise 14-14 (Algo) Edwards and Bell market a single line of home computers,... [LO 14-2, 14-3]Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the coming year contained thefollowing items: sales revenue, $406,000; variable costs, $253,000; fixed costs, $100,600. Actual results for the year were as follows:sales revenue, $353,000; variable costs, $225,600; fixed costs, $96,200. The flexible-budget operating income for the year was$35,600.a. What is the total master (static) budget variance in operating profit for the period?b. What portion of the total master (static) budget variance is attributable to actual sales volume being different from planned salesvolume?c. What portion of the total variance is due to a combination of selling price and costs (variable cost per unit and total fixed costs) beingdifferent from budgeted amounts?a. Total master (static) budget varianceb. Sales volume variancec. Flexible-budget varianceUnfavorableUnfavorableUnfavorable

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Davidson Corporation produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $63 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during the year. Budgeted variable costs per unit are $40, and budgeted total fixed costs are $160,000 for the year. Anticipated sales volume for the year was 14,000 units. Actual sales volume was 5% less than budget. (1) What was the sales price variance for the year? (2) Label this variance F (favorable) or U (unfavorable), as appropriate. (Do not round intermediate calculations.)

Davidson Corporation produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $63 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during the year. Budgeted variable costs per unit are $40, and budgeted total fixed costs are $160,000 for the year. Anticipated sales volume for the year was 14,000 units. Actual sales volume was 5% less than budget. (1) What was the sales price variance for the year? (2) Label this variance F (favorable) or U (unfavorable), as appropriate. (Do not round intermediate calculations.)

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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