The Chesapeake Oyster Company completed the flexible budget analysis for the second quarter, which is given below. Sales Flexible Budget Volume Variance Variance Flexible Budget 12,840 Actual Results Units 12,840 0 840 F Sales Revenue $62,710 $1,490 U $4,200 F Variable Costs 27,570 563 U $1,767 U Contribution Margin $35,140 $2,433 F Fixed Costs 34,260 $2,053 U 260 U $2,313 U $0 Operating Income/(Loss) $880 $2,433 F Which of the following statements would be a correct factor to explain the flexible budget variance for sales revenue? O A. increase in variable cost per unit B. decrease in sales price per unit C. increase in fixed costs D. increase in sales volume $64,200 27,007 $37,193 34,000 $3,193 Static Budget 12,000 $60,000 25,240 $34,760 34,000 $760
The Chesapeake Oyster Company completed the flexible budget analysis for the second quarter, which is given below. Sales Flexible Budget Volume Variance Variance Flexible Budget 12,840 Actual Results Units 12,840 0 840 F Sales Revenue $62,710 $1,490 U $4,200 F Variable Costs 27,570 563 U $1,767 U Contribution Margin $35,140 $2,433 F Fixed Costs 34,260 $2,053 U 260 U $2,313 U $0 Operating Income/(Loss) $880 $2,433 F Which of the following statements would be a correct factor to explain the flexible budget variance for sales revenue? O A. increase in variable cost per unit B. decrease in sales price per unit C. increase in fixed costs D. increase in sales volume $64,200 27,007 $37,193 34,000 $3,193 Static Budget 12,000 $60,000 25,240 $34,760 34,000 $760
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The Chesapeake Oyster Company completed the flexible budget analysis for the second quarter, which is given below.
Sales
Flexible
Budget
Volume
Variance
Variance
Units
Sales Revenue
Variable Costs
Contribution Margin
Actual Results
12,840
0
$62,710
$1,490
27,570
563
$1,767 U
$35,140
$2,433 F
Fixed Costs
34,260
$2,053 U
260
$2,313 U
$0
Operating Income/(Loss)
$880
$2,433 F
Which of the following statements would be a correct factor to explain the flexible budget variance for sales revenue?
Flexible
Budget
12,840
$64,200
A. increase in variable cost per unit
B. decrease in sales price per unit
C. increase in fixed costs
D. increase in sales volume
27,007
$37,193
34,000
$3,193
840
F
$4,200 F
Static
Budget
12,000
$60,000
25,240
$34,760
34,000
$760
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