The results for March for Savery Parts follow: Sales revenues Less Variable costs Direct material Direct labor Variable overhead Marketing Administration Total variable costs Contribution margin Less Fixed costs Manufacturing Marketing Administration Total fixed costs Operating profits Sales revenues Variable costs: Direct material Direct labor Variable overhead Marketing Administration Contribution margin Fixed costs: Manufacturing Marketing Administration Operating profits Actual (based on actual sales of 14,700 units) $ 263,865 Required: Prepare a profit variance analysis for Savery Parts for March. Note: Do not round intermediate calculations. 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. 51,520 44,102 34,103 12,204 18,191 $ 103,745 $ 51,520 44,102 34,103 12,204 18,191 $ 160, 120 $ 103,745 36,460 16,802 24,506 25,977 36,460 16,802 24,506 $ 77,768 $ 25,977 Actual (14,700 Manufacturing Variance Units) $ 263,865 Master Budget (based on budgeted sales of 17,500 units) $ 318,500 63,100 52,300 41,200 13,100 21,400 $ 191,100 $ 127,400 33,000 15,000 27,000 $ 75,000 $ 52,400 SAVERY PARTS Profit Variance Analysis Marketing & Administration Variance Sales Price Variance Flexible Budget (14,700 Units) $ 0 Sales Activity Variance Maste Budge (17,500 L 31: S 63 53 4 S 13 2 2- $ 127 33 12

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The results for March for Savery Parts follow:
Sales revenues
Less
Variable costs
Direct material
Direct labor
Less
Variable overhead
Marketing
Administration
Total variable costs.
Contribution margin
Fixed costs
Manufacturing
Marketing
Administration
Total fixed costs
Operating profits
Sales revenues
Variable costs:
Direct material
Direct labor
Variable overhead
Marketing
Administration
Contribution margin
Fixed costs:
Manufacturing
Marketing
Administration
Actual (based on
actual sales of
14,700 units)
$ 263,865
Operating profits
51,520
44,102
34,103
12,204
18,191
51,520
44,102
34,103
12,204
18,191
$ 103,745
$ 160, 120
$ 103,745
Required:
Prepare a profit variance analysis for Savery Parts for March.
Note: Do not round intermediate calculations. 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.
36,460
16,802
24,506
$ 25,977
36,460
16,802
24,506
$ 77,768
$ 25,977
Master Budget (based
on budgeted sales of
17,500 units)
$318,500
Actual
(14,700 Manufacturing Variance
Units)
$ 263,865
63,100
52,300
41, 200
13,100
21,400
$191,100
$ 127,400
33,000
15,000
27,000
$ 75,000
$ 52,400
SAVERY PARTS
Profit Variance Analysis
Marketing &
Administration
Variance
Sales Price Variance
Flexible
Budget
(14,700 Units)
$
$
0
0
Sales Activity Variance
Master
Budget
(17,500 Units)
$ 318,500
$
$
63,100
52,300
41,200
13,100
21,400
127,400
33,000
15,000
27,000
52,400
Transcribed Image Text:The results for March for Savery Parts follow: Sales revenues Less Variable costs Direct material Direct labor Less Variable overhead Marketing Administration Total variable costs. Contribution margin Fixed costs Manufacturing Marketing Administration Total fixed costs Operating profits Sales revenues Variable costs: Direct material Direct labor Variable overhead Marketing Administration Contribution margin Fixed costs: Manufacturing Marketing Administration Actual (based on actual sales of 14,700 units) $ 263,865 Operating profits 51,520 44,102 34,103 12,204 18,191 51,520 44,102 34,103 12,204 18,191 $ 103,745 $ 160, 120 $ 103,745 Required: Prepare a profit variance analysis for Savery Parts for March. Note: Do not round intermediate calculations. 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. 36,460 16,802 24,506 $ 25,977 36,460 16,802 24,506 $ 77,768 $ 25,977 Master Budget (based on budgeted sales of 17,500 units) $318,500 Actual (14,700 Manufacturing Variance Units) $ 263,865 63,100 52,300 41, 200 13,100 21,400 $191,100 $ 127,400 33,000 15,000 27,000 $ 75,000 $ 52,400 SAVERY PARTS Profit Variance Analysis Marketing & Administration Variance Sales Price Variance Flexible Budget (14,700 Units) $ $ 0 0 Sales Activity Variance Master Budget (17,500 Units) $ 318,500 $ $ 63,100 52,300 41,200 13,100 21,400 127,400 33,000 15,000 27,000 52,400
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