In September, Larson Inc. sold 48,000 units of its only product for $372,000, and incurred a total cost of $345,000, of which $37,000 was fixed costs. The flexible budget for September showed total sales of $420,000. Among variances of the period were: total variable cost flexible- budget variance, $8,000U; total flexible- budget variance, $72,000U; and, sales volume variance, in terms of contribution margin, $39,000U. The sales volume variance, in terms of operating income, for September (to the nearest dollar) was:
In September, Larson Inc. sold 48,000 units of its only product for $372,000, and incurred a total cost of $345,000, of which $37,000 was fixed costs. The flexible budget for September showed total sales of $420,000. Among variances of the period were: total variable cost flexible- budget variance, $8,000U; total flexible- budget variance, $72,000U; and, sales volume variance, in terms of contribution margin, $39,000U. The sales volume variance, in terms of operating income, for September (to the nearest dollar) was:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:In September, Larson Inc. sold 48,000 units
of its only product for $372,000, and
incurred a total cost of $345,000, of which
$37,000 was fixed costs. The flexible
budget for September showed total sales
of $420,000. Among variances of the
period were: total variable cost flexible-
budget variance, $8,000U; total flexible-
budget variance, $72,000U; and, sales
volume variance, in terms of contribution
margin, $39,000U.
The sales volume variance, in terms of
operating income, for September (to the
nearest dollar) was:
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