Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative. Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures actual orders for 414,400 units) $ 7,873,600 for 370,000 units) $ 7,400,000 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $ 2,894,800 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,632,000 556,600 372,000 $ 2,560,600 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 $ 334,200 Note: 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. Fournier Fixtures Profit Variance Analysis Actual Manufacturing Variances Marketing and Administrative Variances Sales Price Variance Sales revenue Variable costs: $ 7,873,600 $ 414,400 U Flexible Budget $ 8,288,000 $ Sales Activity Variance Master Budget 888,000 F $ 7,400,000 Materials 2,646,400 $ 14,400 U Direct labor 238,000 6,160 F 2,632,000 244,160 282,000 U 26,160 U 2,350,000 218,000 Variable overhead 1,218,400 6,560 U 1,211,840 129,840 U Variable marketing and administrative 876,000 $ 4,320 F 880,320 94,320 U 1,082,000 786,000 Total variable costs $ 4,978,800 N Contribution margin $ 2,894,800 2 Խ $ 4,968,320 $ $ 3,319,680 s 532,320 U 355,680 F $ 4,436,000 $ 2,964,000 Fixed costs: Manufacturing overhead Marketing 1,632,000 28,000 F 556,600 16,600 U 1,660,000 540,000 Administrative 372,000 33,000 F 405,000 Total fixed costs Operating profits $ 2,560,600 $ 28,000 F $ 16,400 F $ 2,605,000 1,660,000 540,000 405,000 $ 2,605,000 $ 334,200 $ 714,680 $ 355,680 $ 359,000
Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative. Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures actual orders for 414,400 units) $ 7,873,600 for 370,000 units) $ 7,400,000 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $ 2,894,800 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,632,000 556,600 372,000 $ 2,560,600 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 $ 334,200 Note: 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. Fournier Fixtures Profit Variance Analysis Actual Manufacturing Variances Marketing and Administrative Variances Sales Price Variance Sales revenue Variable costs: $ 7,873,600 $ 414,400 U Flexible Budget $ 8,288,000 $ Sales Activity Variance Master Budget 888,000 F $ 7,400,000 Materials 2,646,400 $ 14,400 U Direct labor 238,000 6,160 F 2,632,000 244,160 282,000 U 26,160 U 2,350,000 218,000 Variable overhead 1,218,400 6,560 U 1,211,840 129,840 U Variable marketing and administrative 876,000 $ 4,320 F 880,320 94,320 U 1,082,000 786,000 Total variable costs $ 4,978,800 N Contribution margin $ 2,894,800 2 Խ $ 4,968,320 $ $ 3,319,680 s 532,320 U 355,680 F $ 4,436,000 $ 2,964,000 Fixed costs: Manufacturing overhead Marketing 1,632,000 28,000 F 556,600 16,600 U 1,660,000 540,000 Administrative 372,000 33,000 F 405,000 Total fixed costs Operating profits $ 2,560,600 $ 28,000 F $ 16,400 F $ 2,605,000 1,660,000 540,000 405,000 $ 2,605,000 $ 334,200 $ 714,680 $ 355,680 $ 359,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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help please answer this with compulsory explanation , computation , for each parts and steps clearly in detail answer in text form no copy paste please underline with complete and clear working with explanation and computation
Transcribed Image Text:Sales revenue
Less
Variable costs
Materials
Direct labor
Variable overhead
Variable marketing and administrative.
Total variable costs
Contribution margin
Less
Fixed costs
Manufacturing overhead
Marketing
Administrative
Total fixed costs
Operating profits
Required:
Prepare a profit variance analysis for Fournier Fixtures
actual orders for
414,400 units)
$ 7,873,600
for 370,000
units)
$ 7,400,000
2,646,400
238,000
1,218,400
876,000
$ 4,978,800
$ 2,894,800
2,350,000
218,000
1,082,000
786,000
$ 4,436,000
$ 2,964,000
1,632,000
556,600
372,000
$ 2,560,600
1,660,000
540,000
405,000
$ 2,605,000
$ 359,000
$ 334,200
Note: 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.
Fournier Fixtures
Profit Variance Analysis
Actual
Manufacturing
Variances
Marketing and
Administrative
Variances
Sales Price Variance
Sales revenue
Variable costs:
$
7,873,600
$
414,400 U
Flexible
Budget
$ 8,288,000 $
Sales Activity Variance
Master
Budget
888,000 F
$ 7,400,000
Materials
2,646,400 $
14,400 U
Direct labor
238,000
6,160 F
2,632,000
244,160
282,000 U
26,160 U
2,350,000
218,000
Variable overhead
1,218,400
6,560 U
1,211,840
129,840 U
Variable marketing and administrative
876,000
$
4,320 F
880,320
94,320 U
1,082,000
786,000
Total variable costs
$
4,978,800
N
Contribution margin
$
2,894,800
2
Խ
$ 4,968,320 $
$ 3,319,680 s
532,320 U
355,680 F
$ 4,436,000
$ 2,964,000
Fixed costs:
Manufacturing overhead
Marketing
1,632,000
28,000 F
556,600
16,600 U
1,660,000
540,000
Administrative
372,000
33,000 F
405,000
Total fixed costs
Operating profits
$
2,560,600 $
28,000 F
$
16,400 F
$ 2,605,000
1,660,000
540,000
405,000
$ 2,605,000
$
334,200
$
714,680 $
355,680
$ 359,000
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