The following data pertain to Inyange Cannery for the month of February. Static Budget Actual Units sold 14,000 12,000 Sales revenue $ 182,000 $ 151,200 Variable manufacturing cost 5,000 39,000 Fixed manufacturing cost 18,000 18,000 Variable selling and administrative cost 14,000 9,000 Fixed selling and administrative cost 14,000 14,000 Required: Compute the sales-price and sales-volume variances for February. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).

The following data pertain to Inyange Cannery for the month of February. Static Budget Actual Units sold 14,000 12,000 Sales revenue $ 182,000 $ 151,200 Variable manufacturing cost 5,000 39,000 Fixed manufacturing cost 18,000 18,000 Variable selling and administrative cost 14,000 9,000 Fixed selling and administrative cost 14,000 14,000 Required: Compute the sales-price and sales-volume variances for February. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

	Static Budget	Actual
Units sold	14,000	12,000
Sales revenue	$ 182,000	$ 151,200
Variable manufacturing cost	5,000	39,000
Fixed manufacturing cost	18,000	18,000
Variable selling and administrative cost	14,000	9,000
Fixed selling and administrative cost	14,000	14,000

Required:

Compute the sales-price and sales-volume variances for February.

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 1 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Dickinsen Company gathered the following data for December: Planned Actual Sales price per unit Number of units of sales $5.80 x 820,000 $4,756,000 $6.00 x 805,000 $4,830,000 Total sales a. Compute the revenue price variance. b. Compute the revenue volume variance. c. Compute the total revenue variance.
Flexible Budgets; Total Operating Income Variance; Breakdown of the Total Operating Income Variance; Spreadsheet Application The following information is available for Brownstone Products Company for the month of July: Actual Master Budget Units 3,800 4,000 Sales revenue $53,200 $60,000 Variable manufacturing costs 19,000 16,000 Fixed manufacturing costs 16,000 15,000 Variable selling and administrative expenses 7,700 8,000 Fixed selling and administrative expenses 10,000 9,000 Required What was the total operating income variance for July, rounded to the nearest whole dollar? (Note: This variance is also called the master (static) budget variance for the period.) Was this variance favorable (F) or unfavorable (U)? Set up a spreadsheet to compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin…
Kennedy Inc. has the following data for its operation in August: Increase in direct materials inventory 100 Sets Direct materials purchased (AQ) 1,600 Sets Finished goods manufactured 700 units Direct materials purchase-price variance $ 576 Favorable Budgeted Finished goods to manufacture 800 Units Direct materials purchases 2,000 Sets Direct materials per unit of finished goods 2 Sets Direct materials price per set (SP) $ 4.70 What was the direct materials usage variance in August, rounded to the nearest dollar? Multiple Choice $705 favorable. $940 unfavorable. $470 unfavorable. $705 unfavorable. $235 unfavorable.
Harlow Parts produces a single product at its Superior Plant. The master budget for July follows: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit 8,200 $ 1,558,000 590,400 98,400 $ 869,200 212,000 370,000 $ 287,200 The following operating income statement shows the actual results for July: Harlow Parts Superior Plant Operating Results (For July) Quantity (units) Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit Required: 9,600 $ 1,760,800 780,394 111,040 $ 869,366 223,040 380,000 $ 266,326 Prepare a profit variance analysis for the Superior Plant for July. (Do not round intermediate calculations. Indicate the effect of each variance by…
Harlow Parts produces a single product at its Superior Plant. The master budget for July follows: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost Variable Selling, General and Administrative cost. Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit Quantity (units) Revenue. The following operating income statement shows the actual results for July. Harlow Parts Superior Plant Operating Results (For July) Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margini 8,000 $ 1,520,000 576,000 96,000 Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit $ 848,000 192,000 350,000 $ 306,000 9,400 $ 1,710,800 700,394 109,040 $ 901,366 203,040 360,000 $ 338,326 Required: Help the managers at Harlow understand the implications from the profit variance analysis by writing a short summary of your analysis. Include…
Lewis Company reports the following foxed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Sales (units produced and sold) Sales (in dollars) Variable costs Fixed costs For Month Ended May 31 Fixed Budget 1,380 $ 1,200 per unit $4809 per unit $152,000 LEWIS COMPANY Flexible Badget Performance Report Flexible Budget Actual Results Variances (1.500 units) (1,500 units) Actual Results 1,500 $ 1,961,000 $799,000 $ 140,000 Favorable/Unfavorable
The following data were collected by Pete Inc. for the month of May: Static budget data: Sales Variable costs Total fixed costs Actual results: Sales Variable costs Total fixed costs Sales (units) Revenue Variable expenses Contribution margin 11,500 units @ 40/unit $28.00 per unit $ 24,150 Required: 1, 2 & 3. Prepare the static and flexible budgets and show the variances by completing the table given below. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed expenses Income 12,600 units @ $39/unit $30.00 per unit $ 23,050 Actual Pete Inc. Static Budget Performance Report For the Month Ended May 31 Flexible Budget Flexible Budget Variance Sales Volume Variance Static Budget Static Variance
Actual and budgeted information about the sales of a product are presented below for June: (CIA adapted) Units Sales Revenue Actual 9,800 $ 289,100 The sales price variance for June was: Budget 11,800 336,300 Multiple Cholce $11,800 unfavorable. $9,800 unfavorable. $12,300 unfavorable $9.800 favorable.
Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $87 per unit and variable costs of $33 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. For Month Ended June 30 Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget (12,500 units) 675,000 287,000 Actual Results (12,500 units) 308,000 302,000 Variances Favorable or Unfavorable S 52,500 Favorable
Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 565 units $ $ 18,900 29,600 11,650 14,900 75,050 Spending Variance Flexible Budget 565 units Volume Variance Master Budget 200 units $ $ 17,400 25,400 11,400 12,700 66,900
The following data for february has been provided by Gillard corporation Denominator level of activity 3700 Dudgeted fixed manufacturing overhead costs 68820 Actual level of activity 4100 Standard machine-hours allowed for the actual output 4000 Actual fixed manufacturing overhead costs 69960 Fixed component of the predetermined overhead rate 18.6 Compute the budget variance for February Compute the volume variance for February
Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Sales (units produced and sold) Sales (in dollars) Variable costs Fixed costs For Month Ended May 31 Fixed Budget 1,370 $1,150 per unit $460 per unit $ 150,500 LEWIS COMPANY Flexible Budget Performance Report Flexible Budget Actual Results (1,570 units) (1,570 units) Variances Actual Results 1,570 $ 1,828,000 $ 726,000 $ 139,000 Favorable or Unfavorable