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Doyle & Company uses a standard costing system. The firm provides the following information about the standard cost per unit for their only product: Price $120.00 Variable manufacturing costs $80.00 Fixed manufacturing costs $20.00 Variable selling costs $3.00 Fixed selling costs $12.00 Profit $5.00 During April, the firm's accounting system reported the following actual income statement: $2,410,740.00 COGS (at standard) $2,040,000.00 Plus: Manufacturing cost variances $(8,830.00) Gross margin $361,910.00 SGA cost (at standard) $301,200.00 Plus: SGA cost variances $(9,457.50) Profit $51,252.50 Revenue The firm provides the following additional data: • For April, the firm planned to make 20,000 units and did not plan to increase or decrease its inventory. • During April, 20,600 units were made but only 20,400 units were sold. • The firm's fixed overhead spending variance was $3,000 F for April. • The firm's variable SGA cost variance was $5,107.50 U for April. • The firm allocates variable SGA costs using the number of units as its cost driver. Find the following: What is the contribution margin per unit? What is the gross margin per unit? What is the budgeted profit? What is the flexible budget profit under the gross margin format? What is the flexible budget profit under the contribution margin format? What is the sales volume variance? What is the sales price variance? What is the production volume variance?

Doyle & Company uses a standard costing system. The firm provides the following information about the standard cost per unit for their only product: Price $120.00 Variable manufacturing costs $80.00 Fixed manufacturing costs $20.00 Variable selling costs $3.00 Fixed selling costs $12.00 Profit $5.00 During April, the firm's accounting system reported the following actual income statement: $2,410,740.00 COGS (at standard) $2,040,000.00 Plus: Manufacturing cost variances $(8,830.00) Gross margin $361,910.00 SGA cost (at standard) $301,200.00 Plus: SGA cost variances $(9,457.50) Profit $51,252.50 Revenue The firm provides the following additional data: • For April, the firm planned to make 20,000 units and did not plan to increase or decrease its inventory. • During April, 20,600 units were made but only 20,400 units were sold. • The firm's fixed overhead spending variance was $3,000 F for April. • The firm's variable SGA cost variance was $5,107.50 U for April. • The firm allocates variable SGA costs using the number of units as its cost driver. Find the following: What is the contribution margin per unit? What is the gross margin per unit? What is the budgeted profit? What is the flexible budget profit under the gross margin format? What is the flexible budget profit under the contribution margin format? What is the sales volume variance? What is the sales price variance? What is the production volume variance?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Doyle & Company uses a standard costing system. The firm provides the following information about the standard cost per unit for their only product: Price $120.00 Variable manufacturing costs $80.00 Fixed manufacturing costs $20.00 Variable selling costs $3.00 Fixed selling costs $12.00 Profit $5.00 During April, the firm's accounting system reported the following actual income statement: Revenue $2,410,740.00 COGS (at standard) $2,040,000.00 Plus: Manufacturing cost variances $(8,830.00) Gross margin $361,910.00 SGA cost (at standard) $301,200.00 $(9,457.50) $51,252.50 Plus: SGA cost variances Profit The firm provides the following additional data: • For April, the firm planned to make 20,000 units and did not plan to increase or decrease its inventory. • During April, 20,600 units were made but only 20,400 units were sold. • The firm's fixed overhead spending variance was $3,000 F for April. • The firm's variable SGA cost variance was $5,107.50 U for April. • The firm allocates variable SGA costs using the number of units as its cost driver. Find the following: What is the contribution margin per unit? What is the gross margin per unit? What is the budgeted profit? What is the flexible budget profit under the gross margin format? What is the flexible budget profit under the contribution margin format? What is the sales volume variance? What is the sales price variance? What is the production volume variance?
Transcribed Image Text:Doyle & Company uses a standard costing system. The firm provides the following information about the standard cost per unit for their only product: Price $120.00 Variable manufacturing costs $80.00 Fixed manufacturing costs $20.00 Variable selling costs $3.00 Fixed selling costs $12.00 Profit $5.00 During April, the firm's accounting system reported the following actual income statement: Revenue $2,410,740.00 COGS (at standard) $2,040,000.00 Plus: Manufacturing cost variances $(8,830.00) Gross margin $361,910.00 SGA cost (at standard) $301,200.00 $(9,457.50) $51,252.50 Plus: SGA cost variances Profit The firm provides the following additional data: • For April, the firm planned to make 20,000 units and did not plan to increase or decrease its inventory. • During April, 20,600 units were made but only 20,400 units were sold. • The firm's fixed overhead spending variance was $3,000 F for April. • The firm's variable SGA cost variance was $5,107.50 U for April. • The firm allocates variable SGA costs using the number of units as its cost driver. Find the following: What is the contribution margin per unit? What is the gross margin per unit? What is the budgeted profit? What is the flexible budget profit under the gross margin format? What is the flexible budget profit under the contribution margin format? What is the sales volume variance? What is the sales price variance? What is the production volume variance?
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