The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,500 units with revenues of $3,306,000. Total variable costs were budgeted at $1,928,500 and fixed costs at $952,000. During the period, actual production and actual sales were 255,100 units. The actual revenues were $3,443,000. Actual variable costs were $6.45 per unit. Actual fixed costs were $982,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Cherrylawn Corporation Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 S 0

The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,500 units with revenues of $3,306,000. Total variable costs were budgeted at $1,928,500 and fixed costs at $952,000. During the period, actual production and actual sales were 255,100 units. The actual revenues were $3,443,000. Actual variable costs were $6.45 per unit. Actual fixed costs were $982,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Cherrylawn Corporation Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 S 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
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Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
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Using the provided budgeted information for production of 10,000 and 15,000 units, prepare a flexible budget for 17,000 units.
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