Drizzdale Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year Sales $ 866,320 Variable Cost of Goods Sold $ 143,325 Variable Operating Expenses $ 162,162 Direct Fixed Manufacturing Overhead $ 96,300 Direct Fixed Operating Expenses $ 17,280 Common Fixed Expenses $ 14,140 Budgeted data for the same time period for the pharmaceutical segment are as follows (all data are in millions): Budgeted sales in units 9,100 Budgeted average selling price per unit $ 85 Variable Cost of Goods Sold per unit $ 15 Variable Operating Expenses per unit $ 18 Direct Fixed Manufacturing Overhead (in total) $ 90,000 Direct Fixed Operating Expenses (in total) $ 16,000 Common Fixed Expenses Allocated to the Pharmaceutical Segment $ 14,000 Prepare a segment margin performance report for the pharmaceutical segment. In this report, be sure to include lines for the contribution margin, the segment margin, and operating income. Calculate a variance and a variance percentage for each line in the report. Use the ABS function when calculating variances

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Drizzdale Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year

Sales	$ 866,320
Variable Cost of Goods Sold	$ 143,325
Variable Operating Expenses	$ 162,162
Direct Fixed Manufacturing Overhead	$ 96,300
Direct Fixed Operating Expenses	$ 17,280
Common Fixed Expenses	$ 14,140

Budgeted data for the same time period for the pharmaceutical segment are as follows (all data are in millions):

Budgeted sales in units	9,100
Budgeted average selling price per unit	$ 85
Variable Cost of Goods Sold per unit	$ 15
Variable Operating Expenses per unit	$ 18
Direct Fixed Manufacturing Overhead (in total)	$ 90,000
Direct Fixed Operating Expenses (in total)	$ 16,000
Common Fixed Expenses Allocated to the Pharmaceutical Segment	$ 14,000

Prepare a segment margin performance report for the pharmaceutical segment. In this report, be sure to include lines for the contribution margin, the segment margin, and operating income. Calculate a variance and a variance percentage for each line in the report.

Use the ABS function when calculating variances

Performance Report
Drizzdale Industries - Pharmaceutical Segment
For the Fiscal Year Ended December 31
(all figures in millions of dollars)
Budgeted
Actual
Variance F/U Variance % F/U
Operating income (loss)

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