The following data are for the year ended December 31, 2021: Beginning Inventory 170,000 units Ending Inventory 69,000 units Sales 690,800 units Selling Price 33.00 per unit Variable manufacturing cost per unit 7.65 per unit Variable operating (marketing) cost per unit sold 1.65 per unit sold Fixed manufacturing costs 2,880,000 Fixed operating (marketing) costs 2,160,000 The Company budgeted: 450,000 units of goods sold in the month in which it occurs. Assume standard costs per unit are the same for units in beginning inventory and units produced during the year. Also, assume no price, spending, or efficiency variances. Any production-volume variance is written off to cost of goods sold. Do not type dollar signs ($) or spaces (_). What is the Company's Fixed Overhead Cost per unit? $per unit What is the Company's Operating Income Difference? $ What is the Company's Production-Volume Variance (for Absorption)? $
The following data are for the year ended December 31, 2021: Beginning Inventory 170,000 units Ending Inventory 69,000 units Sales 690,800 units Selling Price 33.00 per unit Variable manufacturing cost per unit 7.65 per unit Variable operating (marketing) cost per unit sold 1.65 per unit sold Fixed manufacturing costs 2,880,000 Fixed operating (marketing) costs 2,160,000 The Company budgeted: 450,000 units of goods sold in the month in which it occurs. Assume standard costs per unit are the same for units in beginning inventory and units produced during the year. Also, assume no price, spending, or efficiency variances. Any production-volume variance is written off to cost of goods sold. Do not type dollar signs ($) or spaces (_). What is the Company's Fixed Overhead Cost per unit? $per unit What is the Company's Operating Income Difference? $ What is the Company's Production-Volume Variance (for Absorption)? $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
| The following data are for the year ended December 31, 2021: | ||||||
| Beginning Inventory | 170,000 | units | ||||
| Ending Inventory | 69,000 | units | ||||
| Sales | 690,800 | units | ||||
| Selling Price | 33.00 | per unit | ||||
| Variable manufacturing cost per unit | 7.65 | per unit | ||||
| Variable operating (marketing) cost per unit sold | 1.65 | per unit sold | ||||
| Fixed |
2,880,000 | |||||
| Fixed operating (marketing) costs | 2,160,000 | |||||
| The Company budgeted: | 450,000 | units of goods sold in the month in which it occurs. | ||||
| Assume |
||||||
| Also, assume no price, spending, or efficiency variances. Any production-volume variance is written off to cost of goods sold. Do not type dollar signs ($) or spaces (_). | ||||||
| What is the Company's Fixed |
$per unit | |||||
| What is the Company's Operating Income Difference? | $ | |||||
| What is the Company's Production-Volume Variance (for Absorption)? | $ |
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