K Jay Draperies makes and sells curtains. Information related to its performance in 2020 is given below: (Click the icon to view the information.) (Click the icon to view the partially completed performance report.) Calculate Jay Draperies' flexible-budget and sales-volume variances for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income. Begin with the flexible-budget variance column, then the sales-volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Units sold Revenues (sales) Variable costs Contribution margin Fixed costs Operating income Data table EA Actual Flexible-Budget Results Variance 1,500 EA $ 285,000 162,750 122,250 75,000 47,250 Flexible Sales-Volume Budget Variance 1,500 ᏌᏊ 69 $ 300,000 165,000 135,000 77,000 58,000 - ☑ Reference EA EA Static Budget 1,400 280,000 154,000 126,000 77,000 49,000 Actual Budgeted Actual Results Flexible-Budget Flexible Sales-Volume Variances Budget Variances Static Budget Units made and sold 1,500 1,400 1,500 1,500 1,400 Units sold Selling price $190 per curtain $200 per curtain Variable costs $ 162,750 $110 per curtain Revenues (sales) Variable costs $ 285,000 $ 300,000 162,750 165,000 $ 280,000 154,000 Fixed costs $ 75,000 $ 77,000 Contribution margin 122,250 135,000 126,000 75,000 77,000 77,000 Fixed costs $ 47,250 $ 58,000 $ 49,000 Operating income Print Done - ☑ xt
K Jay Draperies makes and sells curtains. Information related to its performance in 2020 is given below: (Click the icon to view the information.) (Click the icon to view the partially completed performance report.) Calculate Jay Draperies' flexible-budget and sales-volume variances for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income. Begin with the flexible-budget variance column, then the sales-volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Units sold Revenues (sales) Variable costs Contribution margin Fixed costs Operating income Data table EA Actual Flexible-Budget Results Variance 1,500 EA $ 285,000 162,750 122,250 75,000 47,250 Flexible Sales-Volume Budget Variance 1,500 ᏌᏊ 69 $ 300,000 165,000 135,000 77,000 58,000 - ☑ Reference EA EA Static Budget 1,400 280,000 154,000 126,000 77,000 49,000 Actual Budgeted Actual Results Flexible-Budget Flexible Sales-Volume Variances Budget Variances Static Budget Units made and sold 1,500 1,400 1,500 1,500 1,400 Units sold Selling price $190 per curtain $200 per curtain Variable costs $ 162,750 $110 per curtain Revenues (sales) Variable costs $ 285,000 $ 300,000 162,750 165,000 $ 280,000 154,000 Fixed costs $ 75,000 $ 77,000 Contribution margin 122,250 135,000 126,000 75,000 77,000 77,000 Fixed costs $ 47,250 $ 58,000 $ 49,000 Operating income Print Done - ☑ xt
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:K
Jay Draperies makes and sells curtains. Information related to its performance in 2020 is given below:
(Click the icon to view the information.)
(Click the icon to view the partially completed performance report.)
Calculate Jay Draperies' flexible-budget and sales-volume variances for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income.
Begin with the flexible-budget variance column, then the sales-volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to
enter "0" in the appropriate field. If the variance is zero, do not select a label.)
Units sold
Revenues (sales)
Variable costs
Contribution margin
Fixed costs
Operating income
Data table
EA
Actual
Flexible-Budget
Results
Variance
1,500
EA
$
285,000
162,750
122,250
75,000
47,250
Flexible
Sales-Volume
Budget
Variance
1,500
ᏌᏊ
69
$
300,000
165,000
135,000
77,000
58,000
- ☑
Reference
EA
EA
Static
Budget
1,400
280,000
154,000
126,000
77,000
49,000
Actual
Budgeted
Actual
Results
Flexible-Budget Flexible Sales-Volume
Variances
Budget Variances
Static
Budget
Units made and sold
1,500
1,400
1,500
1,500
1,400
Units sold
Selling price
$190 per curtain
$200 per curtain
Variable costs
$
162,750
$110 per curtain
Revenues (sales)
Variable costs
$ 285,000
$ 300,000
162,750
165,000
$ 280,000
154,000
Fixed costs
$
75,000 $
77,000
Contribution margin
122,250
135,000
126,000
75,000
77,000
77,000
Fixed costs
$
47,250
$
58,000
$ 49,000
Operating income
Print
Done
- ☑
xt
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