Piper Products sold 412,000 units during the last period when industry volume totaled 2.86 million units. The company originallyexpected to sell 448,500 based on a budgeted market share of 15 percent. The budgeted selling price was $13 per unit. Budgetedvariable costs were $5 per unit. Budget fixed costs were $1,830,000 and applied based on units produced.Required:Compute the sales activity variance, and break it down into market share variance and the industry volume variance.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select either option.Sales activity varianceMarket share varianceIndustry volume variance++EUUบ

Step 1: To compute the sales activity variance, we first need to calculate the actual sales revenue,…

Answered: Piper Products sold 412,000 units…

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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Hh1.
You have asked your sales manager to explain why budgeted revenues for your division are below expectations. The budget indicated $1,039,500 of revenues based on a sales volume of 1,485,000 units. Sales records indicate that 1,500,400 product units were actually sold, but revenues were only $1,020,272. Calculate the sales price variance, the sale volume variance, and the total revenue variance. Sales price variance $ Unfavorable Sales volume variance $ Favorable Total revenue variance $ Unfavorable
The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00. Actual sales for October were 105,000 units, and average selling price was $5.95. The sales volume variance was: Multiple Choice О $5,250 unfavorable. $5,250 favorable. $5,000 unfavorable. О $5,000 favorable.
Lk0017.
In a recent year a car manufacturer sold 217,044 cars. The company budgeted to sell 226,244 cars during the year. The budgeted sales price for each car was $33,000 and the actual sales price for each car was $33,300. AQ-Actual Quantity SQ-Standard Quantity AP Actual Price SP Standard Price Compute the sales price variance and the sales volume varjance and identify each variance as favorable or unfavorable. Actual Sales Flexible budget Budgeted Sales
Required Information [The following information applies to the questions displayed below.] The fixed budget for 21,300 units of production shows sales of $489,900; variable costs of $63,900; and fixed costs of $144,000. The company's actual sales were 27,300 units at $580,900. Actual variable costs were $113,400 and actual fixed costs were $138,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no variance.) Contribution margin Flexible Budget Performance Report Flexible Budget Actual Results Variances Favorable/ Unfavorable
Wildhorse Corporation budgeted $132,000 for its fixed-MOH cost going into the current year. Its actual fixed-MOH cost came in on budget, but it produced and sold 2,500 units instead of the budgeted 3,300. Wildhorse's actual variable manufacturing costs came in on budget at $51 per unit. What is Wildhorse's fixed-MOH volume variance for this year, recognizing that it uses standard costs within is absorption costing system? What is the company's initial COGS (before any variance is considered) and also its adjusted COGS after writing off that variance directly to COGS? Fixed-MOH volume variance $ Unadjusted COGS $ Adjusted COGS $ Unfavorable
The master budget at Western Company last period called for sales of 226,500 units at $10.50 each. The costs were estimated to be $3.90 variable per unit and $226,500 fixed. During the period, actual production and actual sales were 231,500 units. The selling price was $10.60 per unit. Variable costs were $6.00 per unit. Actual fixed costs were $226,500. Required: Prepare a profit variance analysis. (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.)
Komatsu company’s budget for sales was 1,000 of small size tractor for $1,200 per the tractor. The company’s actual sales was $1,365,000, sales units for 1,300 bikes. What are the Sales Price Variance and Sales Activity Variance? And show in graph.
In September, Larson Inc. sold 50,000 units of its only product for $317,000, and incurred a total cost of $295,000, of which $32,000 was fixed costs. The flexible budget for September showed total sales of $370,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $77,000U; and, sales volume variance, in terms of contribution margin, $34,000U. The amount of operating income in the flexible budget (FB) for September, to the nearest dollar, was: Multiple Choice $66,000. $58,000. $99,000. $50,000. $91,000.
Outlet Company's planning budget for 20Y5 was based on the following assumptions: Outlet would produce and sell 8,000 units, its fixed administrative expenses would be $518,000, and the variable component of administrative expenses is 30% of total administrative expenses. During 20Y5, Outlet actually produced and sold 8,500 units and its actual total administrative expenses were $734,000. What is the administrative expense spending variance for 20Y5? $25,875 favorable $13,875 favorable $6,000 favorable O $52,250 favorable O None of the above
Required information [The following information applies to the questions displayed below.] The fixed budget for 21,600 units of production shows sales of $583,200; variable costs of $64,800; and fixed costs of $143,000. The company's actual sales were 26,900 units at $679,300. Actual variable costs were $113,300 and actual fixed costs were $132,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Sales Variable costs Contribution margin Fixed costs Income X Answer is complete but not entirely correct. Flexible Budget Performance Report Flexible Actual Budget Results $ $ 645,600 80,700 564,900 143,000 421,900 Variances $ 679,300 $ (33,700) 113,300 (32,600) 566,000 (63,500) 132,000 11,000 $ 434,000 $ (12,100) Favorable/ Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable

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