**Revenue Variances**Dickinsen Company gathered the following data for December:| | Planned | Actual ||------------------|----------|----------|| Sales price per unit | $5.80 | $6.00 || Number of units of sales | 820,000 | 805,000 || Total sales | $4,756,000 | $4,830,000 |Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.a. Compute the revenue price variance. - [Input Box] $b. Compute the revenue volume variance. - [Input Box] $c. Compute the total revenue variance. - [Input Box] $

Variance Analysis examines differences between a company's estimated and actual business…

Revenue variances Dickinsen Company gathered the following data for December: Sales price per unit Number of units of sales Total sales Planned Actual $5.80 $6.00 x 820,000 x 805,000 $4,756,000 $4,830,000

Revenue variances Dickinsen Company gathered the following data for December: Sales price per unit Number of units of sales Total sales Planned Actual $5.80 $6.00 x 820,000 x 805,000 $4,756,000 $4,830,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Revenue variances Rosenberry Company computed the following revenue variances for January: Revenue price variance Revenue volume variance $(350,000) Favorable 50,000 Unfavorable Assuming that the planned selling price per unit was $10 and that actual sales were 175,000 units, determine the following: a. Actual selling price of January. units b. Planned number of units that were to be sold in January.
The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 10,000 $ 13,000 Cost of Goods Sold (5,000 ) (6,600 ) Gross Margin 5,000 6,400 Variable Cost (2,000 ) (2,700 ) Fixed Cost (2,500 ) (1,900 ) Net Income $ 500 $ 1,800 Based on this information Ashton Company has a Multiple Choice $1,300 favorable sales variance $1,300 unfavorable sales variance $3,000 favorable sales variance $3,000 unfavorable sales variance
Sales Variances Assume that Casio Computer Company, LTD. sells handheld communication devices for $130 during August as a back-to-school special. The normal selling price is $160. The standard variable cost for each device is $80. Sales for August had been budgeted for 600,000 units nationwide; however, due to the slowdown in the economy, sales were only 550,000. Compute the revenue variance, sales price variance, sales volume variance, and net sales volume variance.
None
Production and sales estimates for March for Robin Co. are as follows: Estimated inventory ( units), March 117,100 Desired inventory (units), March 31 19,700 Expected sales volume ( units): Area M 6,500 Area L 9,300 Area O 7, 100 Unit sales price $17 Budgeted production for March is a. 42, 600 b. 22,900 c. 59,700 d. 25,500
The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 9,000 $ 11,600 Cost of Goods Sold (4,600 ) (6,000 ) Gross Margin 4,400 5,600 Variable Cost (1,800 ) (2,400 ) Fixed Cost (2,100 ) (1,600 ) Net Income $ 500 $ 1,600 Based on this information Ashton Company has a Multiple Choice $1,100 favorable sales variance $1,100 unfavorable sales variance $2,600 favorable sales variance $2,600 unfavorable sales variance
Item to Classify Standard Actual Sales Revenue 832,000 853,000 Wages 137,000 141,200 S&A Expenses 412,000 421,200 Cost of Goods Sold 621,200 612,000 The sales revenue flexible budget variance was: Multiple Choice $21,000 unfavorable. $11,800 favorable. $21,000 favorable. $11,800 unfavorable.
Please do not give solution in image format thanku
The management of Zigby Manufacturing prepared the following balance sheet for March 31. Assets ZIGBY MANUFACTURING Balance Sheet March 31 Liabilities and Equity Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation $ 1,680,000 420,000 Total assets $ 112,000 964,320 275,800 Liabilities Accounts payable Loan payable 911,512 Long-term note payable Equity 1,260,000 Common stock Retained earnings $ 3,523,632 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information. $ 562,800 12,000 1,400,000 938,000 610,832 $ 1,974,800 1,548,832 $ 3,523,632 a. Sales for March total 57,400 units. Budgeted sales in units follow: April, 57,400; May, 54,600; June, 56,000; and July, 57,400. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company…
Budgeted Selling and Administrative Expenses Salary Expense Sales Commissions 5% of Sales Insurance Expense Rent Depreciation on equipment Utilities Total Operating Expenses Schedule of Cash Payments for Selling and Administrative Expenses Salary Expense 100% of Prior Month Sales Commissions Insurance Expense October November December Multiple Choice 30,000 30,500 15,000 15,500 12,000 12,000 14,400 14,400 16,500 16,500 2,100 2,300 90,000 91, 200 ? 15,100 12,000 ? 2,200 ? 30,500 ? 12,000 ? ? ? Rent 100% of Prior Months Utilities Expense Total Payments for Selling and Administrative Expenses The amount of cash paid for Selling and Administrative expenses during the month of November is: 31,000 15,300 12,000 14,400 16,500 2,500 91,700 ? ? 12,000 14,400 ?
Break-Even in Sales Revenue, Changes in Variables Carmichael Corporation is in the process of preparing next year's budget. The pro forma income statement for the current year is as follows: Sales $1,800,000 Cost of sales: Direct materials $250,000 Direct labor 180,000 Variable overhead 106,000 Fixed overhead 100,000 636,000 Gross profit $1,164,000 Selling and administrative expenses: Variable $400,000 Fixed 350,000 750,000 Operating income $414,000 Required: 1. What is the break-even sales revenue for Carmichael Corporation for the current year? In your calculations, carry the contribution margin ratio to two decimal places.$937500 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a $60,000 increase in fixed expenses. What is the break-even point in dollars for next year? In your computation, round the…
Mirabel Manufacturing Budgeted Income Statement For the Year Ending December 31 Sales Cost of goods sold: Gross Margin Selling & Administrative Net Operating Income Normal Annual Sales Volume Unit Selling Price Variable expense per unit Variable Fixed Commissions Fixed Marketing Expenses Fixed Administrative Model 101 16,000 $ 650 $250 (Note: Each of the following questions is independent of the others) 1. What is Mirabel's over-all break-even point in sales dollars? $ 13,300,000 $ 9,300,000 $ 4,410,000 $ 1,350,000 $ 6,000,000 $ 2,390,000 Model 201 19,000 $750 $ 200 $ 36,750,000 $ 14,150,000 Model 301 11,000 $ 1,100 $ 500