The following data are available for the most recent year of operations for Prest Products. The revenue portion of the sale variance is $225,000 U. Master budget based on budgeted sales of 45,000 units: Revenue Materials Labor Variable manufacturing overhead and administrative coita Fixed manufacturing overhead and administrative costs Required: a. How many units were actually sold in the most recent period? b. Prepare a sales activity variance for the most recent year for Prest Products 1,500,000 $10,000 375,000 75,000 180,000
The following data are available for the most recent year of operations for Prest Products. The revenue portion of the sale variance is $225,000 U. Master budget based on budgeted sales of 45,000 units: Revenue Materials Labor Variable manufacturing overhead and administrative coita Fixed manufacturing overhead and administrative costs Required: a. How many units were actually sold in the most recent period? b. Prepare a sales activity variance for the most recent year for Prest Products 1,500,000 $10,000 375,000 75,000 180,000
Chapter1: Financial Statements And Business Decisions
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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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Transcribed Image Text:The following data are available for the most recent year of operations for Prest Products. The revenue portion of the sales activit
variance is $225,000 U.
Master budget based on budgeted sales of 45,000 units!
Revenue
Materials
Labor
colta
Variable manufacturing overhead and administrative coś
Fixed manufacturing overhead and administrative costs
Required:
a. How many units were actually sold in the most recent period?
b. Prepare a sales activity variance for the most recent year for Prest Products.
$1,500,000
510,000
375,000
75,000
180,000
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