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Prepare Nash's flexible budget and actual income statement for the year. Sales volume Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Per unit $14.60 $ 3.40 1.65 1.50 0.60 $7.45 $ Actual 52,200 $ $ Flexible Budget 52,200 Per unit $14.00 3.30 1.70 1.50 0.60 $6.90

Prepare Nash's flexible budget and actual income statement for the year. Sales volume Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Per unit $14.60 $ 3.40 1.65 1.50 0.60 $7.45 $ Actual 52,200 $ $ Flexible Budget 52,200 Per unit $14.00 3.30 1.70 1.50 0.60 $6.90

FINANCIAL ACCOUNTING
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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Managers at Nash, Inc. were cautiously optimistic about receiving their bonuses at year-end. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 7% meant bonuses for everyone. The production crew had been managing costs well but wasn't sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Sales volume (units) Selling price DM cost/unit DL cost/unit Variable-MOH cost/unit Variable SG&A cost/unit Fixed-MOH cost Fixed SG&A cost Actual 52,200 $14.60 $3.40 $1.65 $1.50 $0.60 $221,000 $115,000 Master Budget 45,300 $14.00 $3.30 $1.70 $1.50 $0.60 $210,400 $110,800
Transcribed Image Text:Managers at Nash, Inc. were cautiously optimistic about receiving their bonuses at year-end. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 7% meant bonuses for everyone. The production crew had been managing costs well but wasn't sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Sales volume (units) Selling price DM cost/unit DL cost/unit Variable-MOH cost/unit Variable SG&A cost/unit Fixed-MOH cost Fixed SG&A cost Actual 52,200 $14.60 $3.40 $1.65 $1.50 $0.60 $221,000 $115,000 Master Budget 45,300 $14.00 $3.30 $1.70 $1.50 $0.60 $210,400 $110,800
Prepare Nash's flexible budget and actual income statement for the year. Sales volume Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Per unit Fixed SG&A Operating income $14.60 $ 3.40 1.65 1.50 0.60 $7.45 $ $ $ Actual Determine the flexible budget variances and sales price variance, noting the amount and sign for each. 52,200 $ $ Flexible Budget 52,200 Flexible Budget Variance Per unit $14.00 3.30 1.70 1.50 0.60 $6.90 Favorable Unfavorable Neither Favorable nor Unfavorable
Transcribed Image Text:Prepare Nash's flexible budget and actual income statement for the year. Sales volume Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Per unit Fixed SG&A Operating income $14.60 $ 3.40 1.65 1.50 0.60 $7.45 $ $ $ Actual Determine the flexible budget variances and sales price variance, noting the amount and sign for each. 52,200 $ $ Flexible Budget 52,200 Flexible Budget Variance Per unit $14.00 3.30 1.70 1.50 0.60 $6.90 Favorable Unfavorable Neither Favorable nor Unfavorable
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