Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually makes and sells 13,000 units. Per unit Static Flexible standards Budget Budget Number of units 12,000 13,000 Sales revenue $65.00 $780,000 $845,000 Variable manufacturing costs: Materials $11.00 132,000 143,000 $ 9.00 $ 4.20 Labor 108,000 117,000 Overhead 50,400 54,600 Variable general, selling, and administrative costs $11.00 132,000 143,000 Contribution margin $357,600 $387,400 Fixed costs Manufacturing overhead General, selling, and administrative 100,800 100,800 costs 45,000 45,000 Net income $211,800 $241,600 What was the sales volume variance?

Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually makes and sells 13,000 units. Per unit Static Flexible standards Budget Budget Number of units 12,000 13,000 Sales revenue $65.00 $780,000 $845,000 Variable manufacturing costs: Materials $11.00 132,000 143,000 $ 9.00 $ 4.20 Labor 108,000 117,000 Overhead 50,400 54,600 Variable general, selling, and administrative costs $11.00 132,000 143,000 Contribution margin $357,600 $387,400 Fixed costs Manufacturing overhead General, selling, and administrative 100,800 100,800 costs 45,000 45,000 Net income $211,800 $241,600 What was the sales volume 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

Similar questions

The Shoe Factory produces two types of shoes: Walking and Running. The following budgeted information is available: Walking Running 10,000 12,000 $100 $150 $140,000 $45,000 Units produced and sold Price per unit Direct material costs Direct labor costs Production runs Machine hours 1,800 Total overhead costs are $1,910,000. The firm estimates these overhead costs consist of the following activities and has selected the following cost drivers for these activities: 50 400 $120,000 $31,400 150 Activity Cost Production setups $810,000 $1,100,000 Machine time Assume all actual costs were equal to budgeted costs. a. What is the total cost for Walking shoes if overhead is allocated based on direct labor costs? b. What is the overhead allocation for Walking shoes if overhead is allocated using activity-based costing? c. Are the firm's total profits (including both shoe types) higher, lower, or the same if overhead is assigned using direct labor costs instead of activity-based costing? Justify…
None
Need ans for this
Vaughn, Inc. had net sales in 2025 of $1,470,100. At December 31, 2025, before adjusting entries, the balances in selected accounts were Accounts Receivable $313,900 debit, and Allowance for Doubtful Accounts $1,814 debit. Assume that 11% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Date Account Titles and Explanation Dec. 31, 2025 Debit Credit
Baxter Company sold 9,200 units at $145 per unit. Normal production is 9,600 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.75 hours per unit at $16.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $216,000 (budgeted and actual amount) Actual yards used: 47,020 yards at $6.25 per yard Actual hours worked: 25,050 hours at $15.90 per hour Actual total factory overhead: $236,500 Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance. Line Item Description Sales Baxter Company Income Statement Through Gross Profit For the Year Ending December 31 Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Direct materials quantity Direct labor rate Direct…
[The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 51,000 Required 1 Required 2 $ 280,500 51,000 $ 331,500 Actual Results (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Volume variance 45,600 (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. $ 318,200 Complete this question by entering your answers in the tabs below. Volume Variance Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no vari
Dhapa
as Great Outdoze Company manufactures sleeping bags, which sell for $67.00 each. The variable costs of production are as follows: $18.20 9.10 7.00 Direct material Direct labor Variable manufacturing overhead Budgeted fixed overhead in 20x1 was $160,000 and budgeted production was 20,000 sleeping bags. The year's actual production was 20,000 units, of which 16,700 were sold. Variable selling and administrative costs were $1.90 per unit sold; fixed selling and administrative costs were $25,000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method.
Julum Limited manufactures a single product and operates a standard costing system. Budgeted Data (per unit) : Labour 5 hours @ £15.00 Per Hour Budgeted production for August was expected to reach 10000 Units Actual production 11000 Units The actual costs incurred were as follows : Actual Data : Labour 60000 hours @ £14.50 Per Hour a. What is Labour Rate Variance? Choose one from the following: A. £30,000.00 Favourable B. £75,000.00 Unfavourable C. £45,000.00 Favourable D. £45,000.00 Unfavourable
Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $17 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing overhead $ 80,000 Fixed manufacturing overhead $ 260,000 Direct labor-hours 20,000 Management is considering a special order for 710 units of product O96S at $65 each. The normal selling price of product O96S is $76 and the unit product cost is determined as follows: Direct materials $ 38.00 Direct labor 17.00 Manufacturing overhead applied 17.00 Unit product cost $ 72.00 If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special…
Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units). Overhead. Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 52,750 $ 290, 125 52,750 $ 342,875 Standard overhead rate 2. Standard overhead applied 3. Overhead variance Actual Results 48,400 $341,300 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,375 DLH, computed as 52,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)