Gibson Educational Services had budgeted its training service charge at $75 per hour. The company planned to provide 38,000 hoursof training services during Year 3. By lowering the service charge to $57 per hour, the company was able to increase the actualnumber of hours to 39,300.Requireda. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect(ie., zero variance).)b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is noeffect (i.e., zero variance).)c. Did lowering the price of training services increase revenue?a. Volume varianceb. Flexible budget variancec. Was the decision profitable?Sales

Given Data, Budgeted Hours = 38,000 hours Actual Hours = 39,300 hours Budgeted Revenue per hour =…

Answered: Gibson Educational Services had…

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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Coroid Corporation used the following data to evaluate their current operating system. The company sells items for $12 each and had used a budgeted selling price of S13 per unit. Budgeted Actual 290,000 unite 270,000 units Units sold $980.000 $63,000 $886,000 $47,000 Vanable cost Fined costs What is the static-budget variance of variable costs? $94,000 favorable $110,000 unfavorable $110,000 favorable $94,000 unfavorable
You have asked your sales manager to explain why budgeted revenues for your division are below expectations. The budget indicated $1,039,500 of revenues based on a sales volume of 1,485,000 units. Sales records indicate that 1,500,400 product units were actually sold, but revenues were only $1,020,272. Calculate the sales price variance, the sale volume variance, and the total revenue variance. Sales price variance $ Unfavorable Sales volume variance $ Favorable Total revenue variance $ Unfavorable
The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00. Actual sales for October were 105,000 units, and average selling price was $5.95. The sales volume variance was: Multiple Choice О $5,250 unfavorable. $5,250 favorable. $5,000 unfavorable. О $5,000 favorable.
Lk0017.
Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating results for the past year. The company manufactures two environmentally friendly industrial caliber cleaning machines used primarily in automobile repair shops, gas stations, and auto dealerships. The master budget and operating results for the year (000s omitted except for the selling price per unit) follow: Sales Variable cost Contribution Fixed cost Operating income Units sold Unit selling price CM Flexible budget variance CM Sales volume variance CM Sales quantity variance CM Sales mix variance Actual T10 $ 132,000 61,700 $ 70,300 10,000 $ 60,300 1,200 $ S40 $ 58,695 28,000 $ 30,695 10,000 $ 20,695 1,505 T10 15,300 Favorable Favorable Favorable $ (14,101) Unfavorable Budget T10 $ 105,000 50,000 $ 55,000 10,000 $ 45,000 $ 100 Required: 1. Compute the contribution margin flexible-budget variance, contribution margin sales volume variance, contribution margin sales quantity variance, and…
am. 117.
Mia Wiz sells computers. During May, it sold 500 computers at a $800 per unit price. The fixed budget for May predicted sales of 550 computers at an per unit price of $780. AQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Identify it as favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
Komatsu company’s budget for sales was 1,000 of small size tractor for $1,200 per the tractor. The company’s actual sales was $1,365,000, sales units for 1,300 bikes. What are the Sales Price Variance and Sales Activity Variance? And show in graph.
CPA Corp produces and sells sausages. It expects to sell 4,000 dozen for the year for P45 contribution margin per dozen. The marketing manager expects the total market to be 10,000 dozen per year. The corporation sold 5,000 dozen at P40 contribution margin per unit. The total market was 25,000 dozen. Compute the total sales quantity variance on contribution margin. Indicate if favorable or unfavorable.
Required Compute variances for the following items and indicate whether each variance is favorable or unfavorable: Note: Select "None" if there is no effect (i.e., zero variance). Item Sales price Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materials usage Production volume Wages at 4,000 hours Labor usage at $16 per hour Research and development expense Selling and administrative expenses $ $ $ $ Budget $ $ $ $ 658 $ 584,000 $ 391,000 $ 279,000 $ Actual 186,000 pounds 182,000 pounds 990 units 920 units 60,800 $ 96,400 $ 26,000 $ 55,000 $ 529 608,000 364,000 286,000 59,100 97,800 31,000 44,000 Variance pounds units Effect
Carson CPAS specializes in preparing 1040EZ returns for low-income clients. The firm charged $100 per return this year and budgeted $100 per return. Additional information for the firm includes: Actual Budgeted 800 750 $37,500 12,000 Returns processed Variable costs Fixed costs Prepare Carson's static budget and the static budget performance report. Note: Do not use negative signs with any of your answers. Note: Indicate whether the variance is favorable (F) or unfavorable (U) using the drop-down menu in the last column next to the variable amount. Budgeted returns Actual returns Returns processed variance Revenue Variable costs Fixed costs Net income $36,000 12,500 $ $ Actual Results 0 For U $ 0$ Budget Results $ 0$ Variances 0 0 0 0 For U ♦ + >
Bulldogs Inc. has a budgeted gross profit of P2,450,000. The firm also determined that its gross profit margin is 50% and its return on sales is 20%. If the Bulldogs Inc. has a unfavorable total gross profit variance of 600,000 and total assets of P5,920,000, what is the actual return on assets? A. 20% B. 25% C. 30.50% D. 12.50%

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