In September, Numbers Incorporated sold 40,000 units of its only product for $361,000, and incurred a total cost of $335,000, of which $36,000 was fixed costs.The flexible budget for September showed total sales of $410,000. Among variances of the period were: total variable cost flexible-budget variance, $9,000U; totalflexible-budget variance, $70,000U; and, sales volume variance, in terms of contribution margin, $38,000U.The sales volume variance, in terms of operating income, for September was:Multiple ChoiceО$122,000 unfavorable.$87,000 unfavorable.O$21,000 unfavorable.$32,000 unfavorable.

The sales volume variance is the difference between flexible budget and master budget. The operating…

Answered: In September, Numbers Incorporated sold…

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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Deems Company's budgeted fixed factory overhead costs are $50,000 per month plus a variable factory overhead rate of $4.00 per direct labor hour. The standard direct labor hours allowed for November production was 18,000. An analysis of the factory overhead indicates that in November, Deems had an unfavorable budget (controllable) variance of $1,000 and a favorable volume variance of $500. Deems uses a two-way analysis of overhead variance. The applied factory overhead in November is: 122,500 123,000 122,000 121,000
Dog In September, Numbers Incorporated sold 45,000 units of its only product for $394,000, and incurred a total cost of $365,000, of which $39,000 was fixed costs. The flexible budget for September showed total sales of $440,000. Among variances of the period were: total variable cost flexible-budget variance, $7,500U; total flexible-budget variance, $76,000U; and, sales volume variance, in terms of contribution margin, $41,000U. The amount of operating income in the flexible budget (FB) for September was:
The master budget at Monroe Manufacturing last period called for sales of 42,300 units at $45 each. The costs were estimated to be $29 variable per unit and $527,000 fixed. During the period, actual production and actual sales were 45,300 units. The selling price was $44 per unit. Variable costs were $31 per unit. Actual fixed costs were $518,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Monroe Manufacturing Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 $ 0…
Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavo The company budgets a selling price of $81 per unit and variable costs of $35 per unit. (Indicate the effect of each variance selecting favorable, unfavorable, or no variance.) For Month Ended June 30 Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget Actual Results (11,400 units) (11,400 units) 524,400 276,000 357,000 291,000 Variances Favorable/Unfavorable $ 21,600 Favorable
marigold corp.'s variance report for the purchasing department reports 2000 units of material a purchase and 2800 units of material b purchased. it also reports standard prices of $2 for material a and $3 for material b. actual prices reported are $2.10 for material a and $2.80 for material b marigold should report a total price variance of
None
Baxter Corporation's master budget calls for the production of 6,900 units per month and $256,680 indirect labor costs for the year. Baxter considers indirect labor as a component of variable factory overhead cost. During April, the company produced 4,690 units and incurred indirect labor costs of $13,200. What amount would be reported in April as a flexible-budget variance for indirect labor? is this variance favorable (F) or unfavorable (U)? (Leave no cell blank; if there is no effect enter "0" and select "None" from dropdown. Do not round intermediate calculations.) Flexible-budget variance
In analyzing company operations, the controller of the Carson Corporation found a $250,000 favorable flexible budget revenue variance. The variance was calculated by comparing the actual results with the flexible budget. This variance can be wholly explained by: (CMA adapted) Multiple Choice О the total flexible budget variance. О the total static budget variance. О changes in unit selling prices. changes in the number of units sold.
Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $87 per unit and variable costs of $33 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. For Month Ended June 30 Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget (12,500 units) 675,000 287,000 Actual Results (12,500 units) 308,000 302,000 Variances Favorable or Unfavorable S 52,500 Favorable
In September, Numbers Incorporated sold 40,000 units of its only product for $460,000, and incurred a total cost of $425,000, of which $45,000 was fixed costs. The flexible budget for September showed total sales of $500,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $79,000U; and, sales volume variance, in terms of contribution margin, $47,000U. The sales volume variance, in terms of operating income, for September was: Multiple Choice $47,000 unfavorable. $32,000 unfavorable. $149,000 unfavorable. $20,000 unfavorable. $95,000 unfavorable.

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