Domestic Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating results for the past year. Thecompany 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 perunit) follow:SalesVariable costContributionFixed costOperating incomeUnits soldUnit selling priceCM Flexible budget varianceCM Sales volume varianceCM Sales quantity varianceCM Sales mix varianceActual$$$T10$ 132,00061,700$ 70,30010,000$ 60,3001,200540$58,69528,000$ 30,69510,000$ 20,6951,505T107,443Favorable7,857 Favorable25,586 FavorableUnfavorableRequired:1. Compute the contribution margin flexible-budget variance, contribution margin sales volume variance, contribution margin salesquantity variance, and contribution margin sales mix variance for each product and for the firm. (Do not round Intermediatecalculations and round your final answers to the nearest whole dollar amount.)4040✓ S✓S $BudgetST10$ 105,00050,000$ 55,00010,000$ 45,000$ 100S40$ 45,00025,000$20,00010,000$ 10,000$ 40Answer is not complete.S40Favorable3,9396,756 Favorable10,966 X FavorableFavorable3333✓ SS✓S $Total11,382✔ Favorable14,613 Favorable36,552FavorableUnfavorable****

Flexible Budget : > Flexible budget is a budget that can be incorporated for any level of…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tam attended Brown University during 2017-2021. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $10,000 during college, of which $2,000 was paid for by scholarships. To finance her education, she borrowed $6,000 through a federal student loan program and borrowed another $4,000 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2022, she incurred $600 of interest on the federal loans and $400 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $138,000. Required: What amount of student loan interest can Tam and her spouse deduct in 2022, if any?