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Top managers of Root Industries predicted 2024 sales of 14,800 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000 Prepare Root's flexible budget performance report What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any

Top managers of Root Industries predicted 2024 sales of 14,800 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000 Prepare Root's flexible budget performance report What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Top managers of Root Industries predicted 2024 sales of 14,800 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000 Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit Root Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 1 3 Actual Results 2 (1)-(3) Flexible Budget Variance Flexible Budget 4 (3) - (5) Sales Volume Variance 5 Static Budget
Transcribed Image Text:Top managers of Root Industries predicted 2024 sales of 14,800 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000 Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit Root Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 1 3 Actual Results 2 (1)-(3) Flexible Budget Variance Flexible Budget 4 (3) - (5) Sales Volume Variance 5 Static Budget
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