In September, Numbers Incorporated sold 45,000 units of its only product for $438,000, and incurred a total cost of $405,000, of which $43,000 was fixed costs.The flexible budget for September showed total sales of $480,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; totalflexible-budget variance, $75,000U; and, sales volume variance, in terms of contribution margin, $45,000U.The budgeted fixed cost for September was:Multiple Choice$18,000.$51,000.$83,000.$108,000. $141,000.

The variance is the difference between the actual data and standard output of the production.

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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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…
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None
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