Exercise 16-30 (Algo) Sales Activity Variance (LO 16-3) The following data are available for the most recent year of operations for Slacker & Sons. The revenue portion of the sales activity variance is $203,000 F. Master budget based on actual sales of 154,000 units: Revenue $ 2,900,000 Materials 854,000 Labor 629,000 Variable manufacturing overhead and administrative costs 129,000 Fixed manufacturing overhead and administrative costs 340,000 Required: a. How many units were actually sold in the most recent period? b. Prepare a sales activity variance for the most recent year for Slacker & Sons. Complete this question by entering your answers in the tabs below. Required A Required B How many units were actually sold in the most recent period? (Do not round intermediate calculations.) Actual sales units b) SLACKER & SONS Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Variable costs: Materials Direct labor Variable manufacturing and administrative Total variable costs $0 $0 Contribution margin $0 $0 Fixed costs: Manufacturing overhead and administrative Total fixed costs Operating profits $0 $0
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Exercise 16-30 (Algo) Sales Activity Variance (LO 16-3)
The following data are available for the most recent year of operations for Slacker & Sons. The revenue portion of the sales activity variance is $203,000 F.
| Revenue | $ | 2,900,000 | |
| Materials | 854,000 | ||
| Labor | 629,000 | ||
| Variable manufacturing |
129,000 | ||
| Fixed manufacturing overhead and administrative costs | 340,000 | ||
Required:
a. How many units were actually sold in the most recent period?
b. Prepare a sales activity variance for the most recent year for Slacker & Sons.
Complete this question by entering your answers in the tabs below.
- Required A
- Required B
How many units were actually sold in the most recent period? (Do not round intermediate calculations.)
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b)
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