Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the coming year contained the following items sales revenue, $383,500, variable costs, $253,500, fixed costs, $100,700. Actual results for the year were as follows: sales revenue, $363,500; variable costs, $225,700; foxed costs, $96,400 The flexible-budget operating income for the year was $35,700 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 sales volume? What portion of the total variance is due to a combination of selling price and costs (variable cost per unit and total fixed costs) being different from budgeted amounts? a Total master (static) budget variance b Sales volume variance c Flexible budget variance

Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the coming year contained the following items sales revenue, $383,500, variable costs, $253,500, fixed costs, $100,700. Actual results for the year were as follows: sales revenue, $363,500; variable costs, $225,700; foxed costs, $96,400 The flexible-budget operating income for the year was $35,700 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 sales volume? What portion of the total variance is due to a combination of selling price and costs (variable cost per unit and total fixed costs) being different from budgeted amounts? a Total master (static) budget variance b Sales volume variance c Flexible budget variance

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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Vala
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