Problem 16-57 (Static) Find Data for Profit Variance Analysis (LO 16-4) McCoy Industries has prepared the following, partially complete profit variance analysis: Required: Find the values of the missing items. Assume that actual sales volume equals actual production volume. (There are no inventory level changes.) Note: Do not round intermediate calculations. 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. Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative costs Contribution margin Less: Fixed manufacturing costs Reported Income Statement (based on actual sales volume) > Answer is not complete. Flexible Budget (based Master Budget (based on Manufacturing Variance Marketing and Administrative Variance Sales Price Variance on actual sales volume) budgeted Sales Activity Variance sales volume) 10,000 F 50,000 $ 16,200 F F $ 135,000 U 19,440 $ 8,100 U LL F FL FL 1,800 F Fixed marketing and administrative costs Operating profits 16,200 U U $ 16,200 86,400 U 72,000 21,600 3,600 U $ 54,000 F $ 45,000 13,500 LL F $ 18,000
Problem 16-57 (Static) Find Data for Profit Variance Analysis (LO 16-4) McCoy Industries has prepared the following, partially complete profit variance analysis: Required: Find the values of the missing items. Assume that actual sales volume equals actual production volume. (There are no inventory level changes.) Note: Do not round intermediate calculations. 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. Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative costs Contribution margin Less: Fixed manufacturing costs Reported Income Statement (based on actual sales volume) > Answer is not complete. Flexible Budget (based Master Budget (based on Manufacturing Variance Marketing and Administrative Variance Sales Price Variance on actual sales volume) budgeted Sales Activity Variance sales volume) 10,000 F 50,000 $ 16,200 F F $ 135,000 U 19,440 $ 8,100 U LL F FL FL 1,800 F Fixed marketing and administrative costs Operating profits 16,200 U U $ 16,200 86,400 U 72,000 21,600 3,600 U $ 54,000 F $ 45,000 13,500 LL F $ 18,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 16-57 (Static) Find Data for Profit Variance Analysis (LO 16-4)
McCoy Industries has prepared the following, partially complete profit variance analysis:
Required:
Find the values of the missing items. Assume that actual sales volume equals actual production volume. (There are no inventory level
changes.)
Note: Do not round intermediate calculations. 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.
Units
Sales revenue
Less:
Variable manufacturing costs
Variable marketing and administrative costs
Contribution margin
Less:
Fixed manufacturing costs
Reported
Income
Statement
(based on
actual
sales
volume)
> Answer is not complete.
Flexible
Budget
(based
Master
Budget
(based on
Manufacturing
Variance
Marketing and
Administrative
Variance
Sales Price
Variance
on
actual
sales
volume)
budgeted
Sales Activity
Variance
sales
volume)
10,000
F
50,000
$ 16,200
F
F
$ 135,000
U
19,440
$ 8,100
U
LL
F
FL
FL
1,800
F
Fixed marketing and administrative costs
Operating profits
16,200
U
U
$ 16,200
86,400
U
72,000
21,600
3,600
U
$ 54,000
F
$ 45,000
13,500
LL
F
$ 18,000
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