Matthew works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $97 and $192 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 760 pairs of clogs and 240 pairs of boots. The variable cost per pair was $52 for clogs and $78 for boots. At the end of the year, Matthew evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. Actual sales volume: clogs, 869; boots, 231. . Actual selling price: clogs, $108 per pair; boots, $181 per pair. • (a) Actual per-unit variable costs for each product were the same as budgeted. Your answer is correct. Show Transcribed Text Your answer is correct. For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1) master budget, (2) flexible budget, and (3) actual income statement. Total revenues Master Budget Flexible Budget 119,800 $ Actual 128,645 $ 135,663 Total variable costs $ 58,240 $ 63,206 $ 63,206 Total contribution margin $ 61,560 $ 65,439 $ 72,457 Show Transcribed Text (b) C Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each. Sales price variance Sales activity variance $
Matthew works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $97 and $192 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 760 pairs of clogs and 240 pairs of boots. The variable cost per pair was $52 for clogs and $78 for boots. At the end of the year, Matthew evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. Actual sales volume: clogs, 869; boots, 231. . Actual selling price: clogs, $108 per pair; boots, $181 per pair. • (a) Actual per-unit variable costs for each product were the same as budgeted. Your answer is correct. Show Transcribed Text Your answer is correct. For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1) master budget, (2) flexible budget, and (3) actual income statement. Total revenues Master Budget Flexible Budget 119,800 $ Actual 128,645 $ 135,663 Total variable costs $ 58,240 $ 63,206 $ 63,206 Total contribution margin $ 61,560 $ 65,439 $ 72,457 Show Transcribed Text (b) C Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each. Sales price variance Sales activity variance $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Matthew works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots
typically sell for $97 and $192 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company
expected to sell 760 pairs of clogs and 240 pairs of boots. The variable cost per pair was $52 for clogs and $78 for boots.
At the end of the year, Matthew evaluated the company's sales and contribution margin amounts against the budget. Actual results for
the year were as follows.
Actual sales volume: clogs, 869; boots, 231.
.
Actual selling price: clogs, $108 per pair; boots, $181 per pair.
•
(a)
Actual per-unit variable costs for each product were the same as budgeted.
Your answer is correct.
Show Transcribed Text
Your answer is correct.
For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1)
master budget, (2) flexible budget, and (3) actual income statement.
Total revenues
Master Budget
Flexible Budget
119,800
$
Actual
128,645
$
135,663
Total variable costs
$
58,240
$
63,206
$
63,206
Total contribution margin
$
61,560
$
65,439
$
72,457
Show Transcribed Text
(b)
C
Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each.
Sales price variance
Sales activity variance
$
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