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Required: 1. Compute the contribution margin flexible-budget variance, contribution margin sales volume variance, contribution margin sales quantity variance, and contribution margin sales mix variance for each product and for the firm. (Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount.)

Required: 1. Compute the contribution margin flexible-budget variance, contribution margin sales volume variance, contribution margin sales quantity variance, and contribution margin sales mix variance for each product and for the firm. (Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount.)

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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Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating results for the past year. The company manufactures two environmentally friendly industrial caliber cleaning machines used primarily in automobile repair shops, gas stations, and auto dealerships. The master budget and operating results for the year (000s omitted except for the selling price per unit) follow: Sales Variable cost Contribution Fixed cost Operating income Units sold Unit selling price CM Flexible budget variance CM Sales volume variance CM Sales quantity variance CM Sales mix variance Actual $ $ $ T10 $ 132,000 61,700 $ 70,300 10,000 $ 60,300 1,200 540 $58,695 28,000 $ 30,695 10,000 $ 20,695 1,505 T10 7,443 Favorable 7,857 Favorable 25,586 Favorable Unfavorable Required: 1. Compute the contribution margin flexible-budget variance, contribution margin sales volume variance, contribution margin sales quantity variance, and contribution margin sales mix variance for each product and for the firm. (Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount.) 4040 ✓ S ✓S $ Budget S T10 $ 105,000 50,000 $ 55,000 10,000 $ 45,000 $ 100 S40 $ 45,000 25,000 $20,000 10,000 $ 10,000 $ 40 Answer is not complete. S40 Favorable 3,939 6,756 Favorable 10,966 X Favorable Favorable 3333 ✓ S S ✓S $ Total 11,382✔ Favorable 14,613 Favorable 36,552 Favorable Unfavorable ****
Transcribed Image Text:Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating results for the past year. The company manufactures two environmentally friendly industrial caliber cleaning machines used primarily in automobile repair shops, gas stations, and auto dealerships. The master budget and operating results for the year (000s omitted except for the selling price per unit) follow: Sales Variable cost Contribution Fixed cost Operating income Units sold Unit selling price CM Flexible budget variance CM Sales volume variance CM Sales quantity variance CM Sales mix variance Actual $ $ $ T10 $ 132,000 61,700 $ 70,300 10,000 $ 60,300 1,200 540 $58,695 28,000 $ 30,695 10,000 $ 20,695 1,505 T10 7,443 Favorable 7,857 Favorable 25,586 Favorable Unfavorable Required: 1. Compute the contribution margin flexible-budget variance, contribution margin sales volume variance, contribution margin sales quantity variance, and contribution margin sales mix variance for each product and for the firm. (Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount.) 4040 ✓ S ✓S $ Budget S T10 $ 105,000 50,000 $ 55,000 10,000 $ 45,000 $ 100 S40 $ 45,000 25,000 $20,000 10,000 $ 10,000 $ 40 Answer is not complete. S40 Favorable 3,939 6,756 Favorable 10,966 X Favorable Favorable 3333 ✓ S S ✓S $ Total 11,382✔ Favorable 14,613 Favorable 36,552 Favorable Unfavorable ****
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