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The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 280,500 units with revenues of $3,366,000. Total variable costs were budgeted at $1,963,500 and fixed costs at $972,000. During the period, actual production and actual sales were 256,100 units. The actual revenues were $3,448,000. Actual variable costs were $5.95 per unit. Actual fixed costs were $1,002,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.

The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 280,500 units with revenues of $3,366,000. Total variable costs were budgeted at $1,963,500 and fixed costs at $972,000. During the period, actual production and actual sales were 256,100 units. The actual revenues were $3,448,000. Actual variable costs were $5.95 per unit. Actual fixed costs were $1,002,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 1BE: At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and...
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The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 280,500 units with revenues of $3,366,000. Total variable costs were budgeted at $1,963,500 and fixed costs at $972,000. During the period, actual production and actual sales were 256,100 units. The actual revenues were $3,448,000. Actual variable costs were $5.95 per unit. Actual fixed costs were $1,002,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Transcribed Image Text:The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 280,500 units with revenues of $3,366,000. Total variable costs were budgeted at $1,963,500 and fixed costs at $972,000. During the period, actual production and actual sales were 256,100 units. The actual revenues were $3,448,000. Actual variable costs were $5.95 per unit. Actual fixed costs were $1,002,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
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