Midnight Sun Outfitters projected sales of 76,000 units for the year at a unit sales price of $12.00. Actual sales for the year were 72,000 units at $15.00 per unit. Variable costs were budgeted at $4.50 per unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $378,000, while actual fixed costs amounted to $410,000. What is the sales volume variance for operating income? Group of answer choices $30,000 favorable $166,000 unfavorable $30,000 unfavorable $136,000 unfavorable

Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…

A: The static budget variance of variable  Cost = Actual  variable Cost  - Budgeted  variable Cost

Q: Global​ Engineering's actual operating income for the current year is $57,000. The flexible budget…

A: Sales volume variance for operating income = Flexible Budget Operating Income for actual sales -…

Q: Marathon Sports Equipment Company projected sales of 79,000 units at a unit sales price of $12 for…

A: Sales volume  variance  = (actual  units - budgeted units ) × Budgeted  selling price

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A: Variance Analysis : Analysis of a difference between planned and actual behavior. After analyzing…

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A: The difference between the actual profit realized and the planned profit level is known as the…

Q: The master budget at Monroe Manufacturing last period called for sales of 42,800 units at $50 each.…

A: Variance arises when the actual cost differs from the budgeted cost.The variance is favorable when…

Q: op managers of Rouse Industries predicted 2025 sales of 14,900 units of its product at a unit price…

A: The variance is the difference between the standard and actual cost data. The variance can be…

Q: Bingo Inc. wants to analyze the variances in its actual and budgeted gross profit. The following are…

A: Variance:   It is difference between the budgeted and actual amount spend on material and labor. It…

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A: Formula: Sales price variance = ( Actual quantity x actual price ) - ( Actual quantity x standard…

Q: Top managers of White industries predicted 2024 sales of 14,700 units of its product at a unit price…

A: The flexible budget is prepared for the actual production level on the basis of the standard rates.…

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A: Formula: Sales volume variance = ( Actual sales - Budgeted sales ) x Budgeted rate

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A: Margin of safety in units = Total sales in units - Break even sales in units

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A: Profit variance analysis is a financial evaluation procedure that compares a company's actual profit…

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A: Static-Budget Variance of Revenue = (Actual Units Sold – Budgeted Units Sold)*Budgeted Selling Price

Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…

A: Static budget is that budget which is fixed in nature and will not be change. But if level of…

Q: Texas Company has prepared the flexible budget formula for production costs: costs= 340,000 + 9X,…

A: Budgets are the forecasts or estimates that are made for future period of time. Budget variance…

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A: Variances is the amount of difference between the actual values and the values estimated by the…

Q: Benefit Pillow Company projected sales of 76,000 units for the year at a unit sales price of $13.00.…

A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…

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A: Given: Budgeted Quantity (BQ)=$160000$20=8000 unitsBudgeted Price (BP)=$20Actual Quantity (AQ)=8200…

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A: Variance arises when the actual cost is different from the budgeted cost. The variance is favorable…

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A: The objective of this question is to prepare a profit variance analysis for Monroe Manufacturing.…

Q: What is the Sales Volume Variance under 4-way analysis?

A: Any variance can be evaluated in 4 ways The fixed price/spending variance The variable…

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A: In managerial accounting and performance analysis, the term "sales volume variance" is used to…

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A: Answer:- Variance analysis meaning:- Variance analysis, is basically the examination of differences…

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A: Standard costs are estimates of the actual costs in a company’s production process Then, the…

Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…

A: Actual selling price - $19 per unit Budgeted selling price - $19 per unit Actual units sold - 48,000…

Q: The master budget at Western Company last period called for sales of 226,500 units at $10.50 each.…

A: A financial management technique called profit variance analysis is used to examine discrepancies…

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A: Variance analysis refers to the assessment of the deviation of actual activity from the forecasted…

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A: Static budget is the original budget, which is not revised according to the actual units.

Q: Based on a predicted level of production and sales of 22,000 units, a company anticipates total…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Q: Top managers of Cole Industries predicted 2018 sales of 14,600 units of its product at a unit price…

A: Formulas:

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.