The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 284,000 units with revenues of $3,408,000. Total variable costs were budgeted at $1,988,000 and fixed costs at $986,000. During the period, actual production and actual sales were 256,800 units. The actual revenues were $3,451,500. Actual variable costs were $5.60 per unit. Actual fixed costs were $1,016,000. 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. Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profits Actual Cherrylawn Corporation Profit Variance Analysis Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget

The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 284,000 units with revenues of $3,408,000. Total variable costs were budgeted at $1,988,000 and fixed costs at $986,000. During the period, actual production and actual sales were 256,800 units. The actual revenues were $3,451,500. Actual variable costs were $5.60 per unit. Actual fixed costs were $1,016,000. 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. Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profits Actual Cherrylawn Corporation Profit Variance Analysis Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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