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 levelchanges.)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.UnitsSales revenueLess:Variable manufacturing costsVariable marketing and administrative costsContribution marginLess:Fixed manufacturing costsReportedIncomeStatement(based onactualsalesvolume)> Answer is not complete.FlexibleBudget(basedMasterBudget(based onManufacturingVarianceMarketing andAdministrativeVarianceSales PriceVarianceonactualsalesvolume)budgetedSales ActivityVariancesalesvolume)10,000F50,000$ 16,200FF$ 135,000U19,440$ 8,100ULLFFLFL1,800FFixed marketing and administrative costsOperating profits16,200UU$ 16,20086,400U72,00021,6003,600U$ 54,000F$ 45,00013,500LLF$ 18,000

Part 2: ExplanationStep 1: Calculate the reported income statement based on actual sales volume.-…

Answered: Problem 16-57 (Static) Find Data for…

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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Top of Form Multiple Choice Theories Choose the best answer. A cost variance of zero indicates that the manufacturing management was * able to control production cost below budgeted costs. unable to keep production costs at budgeted costs even if the purchasing department was able to keep the budgeted price. able to control production costs at budgeted costs. unable to keep production costs at budgeted costs. In gross profit analysis, a favorable cost of sales variance that includes an unfavorable cost volume variance will mean: * The production department was able to control costs within the budget but the purchasing department went over the budget. The purchasing department was able to control costs within the budget but the production department over the budget. The production and purchasing department were able to control costs within the budget. The production and purchasing departments went over the budget. Variance that arises solely because the actual units sold differs from…
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Which statement is true? A. Gross profit (GP) variance analysis, is an essential part of financial statements analysis that is used to evaluate the performance of a firm's departments responsible for the firm's line activities (functions). B. Increases and decreases in sales and cost of sales have direct relationship with increases and decreases in GP. C. If there is a negative sales price variance and there is no cost variance, the gross profit variance will be equal to the sales price variance. D. A zero cost variance indicates that there is no difference between the standard cost prices and actual cost prices. E. none of the above
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Rodolfo works at Johnson Incorporated and is tasked with measuring costs. When Rodolfo identifies that actual sales are less than expected sales, what type of variance did Rodolfo identify? A Fixed cost volume variance B Sales price variance C Favorable variance D Unfavorable variance
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Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in relation to the analysis of its gross profit. Which of the following must the company determine? a. Sales Volume Variance b. Cost Price Variance c. Volume Variance d. Sales Price Variance
Find the values of the missing items. Assume that the actual sales volume equals actual production volume. (There are no inventory level changes.) (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.) Sales revenue Variable manufacturing costs Variable marketing and administrative costs Contribution margin Reported Income Statement (2,600 units) $ 132,600 $ 85,000 Manufacturing Variance $ 4,420 F Marketing and Administrative Variance Sales Price Variance Flexible Budget Sales Activity (2,600 Variance units) $ 143,000 1,520 F Master Budget (2,700 units) 16,200
What is the total gross profit variance?
None
A.) Sales Price Variance B.) Sales Volume Variance C.) Sales Variance D.) Cost Price Variance E.) Cost Volume Variance F.) Total Gross Profit Variance G.) Price Variance H.) Price-Quantity Variance I.) Cost Variance J.) Cost-Quantity Variance
A.) Sales Price Variance B.) Sales Volume Variance C.) Sales Variance D.) Cost Price Variance E.) Cost Volume Variance F.) Total Gross Profit Variance G.) Price Variance H.) Price-Quantity Variance I.) Cost Variance J.) Cost-Quantity Variance

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