The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which is given below.FlexibleSalesActualBudgetResults VarianceFlexibleVolumeStaticBudget12,900VarianceBudget11,800Units12,9001,100 FSales Revenue$62,71027,580$2,894 U$65,60427,593$5,594 F2,353 U$60,010Variable Costs13 U25,240Contribution MarginS2,881 U$35,13034,240$38,01134,090$3,241 F$34,77034,090Fixed Costs150 UOperating Income/(Loss)$890$3,031 U$3,921$3,241 F$680Which of the following would be a correct factor to explain the sales volume variance for sales revenue?O A. increase in variable cost per unitB. increase in sales volumeOC. increase in sales price per unitO D. increase in fixed costs

Sales volume variance = (Actual Units Sold — Budgeted Units Sold) x Price per unit

The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which is given below. Flexible Sales Volume Variance Actual Budget Flexible Static Results Variance Budget 12,900 $65,604 Budget 11,800 $60,010 Units 12,900 1,100 F $62,710 $2,894 U $5,594 F 2,353 U Sales Revenue Variable Costs 27,580 13 U 27,593 25,240 Contribution Margin $35,130 $34,770 $2,881 U 150 U $3,031 U $38,011 34,090 $3,921 $3,241 F 34,240 $890 34,090 $680 Fixed Costs Operating Income/(Loss) $3,241 F Which of the following would be a correct factor to explain the sales volume variance for sales revenue? O A. increase in variable cost per unit O B. increase in sales volume OC. increase in sales price per unit O D. increase in fixed costs

The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which is given below. Flexible Sales Volume Variance Actual Budget Flexible Static Results Variance Budget 12,900 $65,604 Budget 11,800 $60,010 Units 12,900 1,100 F $62,710 $2,894 U $5,594 F 2,353 U Sales Revenue Variable Costs 27,580 13 U 27,593 25,240 Contribution Margin $35,130 $34,770 $2,881 U 150 U $3,031 U $38,011 34,090 $3,921 $3,241 F 34,240 $890 34,090 $680 Fixed Costs Operating Income/(Loss) $3,241 F Which of the following would be a correct factor to explain the sales volume variance for sales revenue? O A. increase in variable cost per unit O B. increase in sales volume OC. increase in sales price per unit O D. increase in fixed costs

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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