Problem 5. Angel Company is a wholesaler that sells a single product at P103.40 per unit. Its cost analyst has collated the necessary information for the gross profit analysis, comparing actual to budget for its product. The actual and budget data for the month of March of the current year show: Actual Budgeted Sales volume (units) Cost of goods sold Required: Present the gross profit variance analysis. 5,000 6,000 P315,500 P378,600

Problem 5. Angel Company is a wholesaler that sells a single product at P103.40 per unit. Its cost analyst has collated the necessary information for the gross profit analysis, comparing actual to budget for its product. The actual and budget data for the month of March of the current year show: Actual Budgeted Sales volume (units) Cost of goods sold Required: Present the gross profit variance analysis. 5,000 6,000 P315,500 P378,600

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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Similar questions

b. Calculate the profit variance c. Calculate the total revenue variance. d) Calculate the revenue volume variance. e) Calculate the revenue price variance. f) Calculate the total cost variance.
The variable overhead efficiency variance is computed and interpreted. a) the same as; the same as b) the same as; differently than c) differently than; the same as d) differently than; differently than the direct-cost efficiency variance.
List the fixed overhead variances, and briefly describe each.
Gross profit volume variance is derived by A. combining sales and cost of sales variances. B. combining sales volume and cost volume variances. C. deducting cost price variance from gross profit variance. D. deducting sales price variance from gross profit variance.
in preparing variance analysis for both variable overhead and fixed overhead costs, both include spending variances
Define product cost variances.
Which of the following underlying assumptions form(s) the basis for gross profit variance analysis? A. In multi-product organization, the sales mix remains discretionary. B. Sales and costs behave in ainear manner C. All of the choices are assumptions that underlie gross profit variance analysis D. Costs can be categorized as variable