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Debra Corporation started the year expecting to produce and sell 132,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that-145,000 units. Needless to say, owners Ell and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Sales Variable costs: OM DL Variable-MOH Variable SG&A Contribution margin Fixed costs Fixed-MOH Fixed SG&A Operating income Actual Income Flexible Budget $2,900,000 435,218 632,853 300,150 130.500 1,401,279 525,263 432,900 $443,116 Master Budget $2,666,400 396,000 554,400 237,600 118,800 1,359,600 501,600 409,000 $449,000

Debra Corporation started the year expecting to produce and sell 132,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that-145,000 units. Needless to say, owners Ell and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Sales Variable costs: OM DL Variable-MOH Variable SG&A Contribution margin Fixed costs Fixed-MOH Fixed SG&A Operating income Actual Income Flexible Budget $2,900,000 435,218 632,853 300,150 130.500 1,401,279 525,263 432,900 $443,116 Master Budget $2,666,400 396,000 554,400 237,600 118,800 1,359,600 501,600 409,000 $449,000

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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(c) Conduct a detailed variance analysis for all product costs (price, efficiency, and volume variances), taking the following details into consideration. (c) The company purchased and used 300,150 pounds of DM. 42,050 DL hours were used. Price variance Efficiency variance Price variance . Volume variance -Tauchrink and Medis Price variance DL Unfavorable Volume variance 150075 The company purchased and used 300,150 pounds of DM. ● 42,050 DL hours were used. S 15225 $ DM Favorable Conduct a detailed variance analysis for all product costs (price, efficiency, and volume variances), taking the following details into consideration. Unfavorable Fixed-MOH $ $ $ Fixed-MOH S Variable-MOH DL Unfavorable Unfavor
Transcribed Image Text:(c) Conduct a detailed variance analysis for all product costs (price, efficiency, and volume variances), taking the following details into consideration. (c) The company purchased and used 300,150 pounds of DM. 42,050 DL hours were used. Price variance Efficiency variance Price variance . Volume variance -Tauchrink and Medis Price variance DL Unfavorable Volume variance 150075 The company purchased and used 300,150 pounds of DM. ● 42,050 DL hours were used. S 15225 $ DM Favorable Conduct a detailed variance analysis for all product costs (price, efficiency, and volume variances), taking the following details into consideration. Unfavorable Fixed-MOH $ $ $ Fixed-MOH S Variable-MOH DL Unfavorable Unfavor
Debra Corporation started the year expecting to produce and sell 132,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that-145.000 units. Needless to say, owners Ell and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Sales Variable costs: DM DL Variable MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Actual Income $2,900,000 435,218 632,853 300,150 130,500 1,401,279 525,263 432,900 $443,116 Flexible Budget Master Budget D $2,666,400 396,000 554,400 237,600 118,800 1,359,600 501,600 409,000 $449,000 In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts.
Transcribed Image Text:Debra Corporation started the year expecting to produce and sell 132,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that-145.000 units. Needless to say, owners Ell and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Sales Variable costs: DM DL Variable MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Actual Income $2,900,000 435,218 632,853 300,150 130,500 1,401,279 525,263 432,900 $443,116 Flexible Budget Master Budget D $2,666,400 396,000 554,400 237,600 118,800 1,359,600 501,600 409,000 $449,000 In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts.
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