Turtle Toys Unlimited manufactures children's toys. The company is evaluating the new toy product for toddlers. The company budgeted to sell 735 toys for $105 each. The variable costs include direct materials cost of $15 per unit and direct labour of $30 per unit. Fixed costs are estimated to be $8,000. Actual for the year are as follows: The Company sold 650 toys for $93 each. Actual variable costs were a total of $26,000 for the toys that were sold. Actual fixed costs were $10,000. Required Prepare a performance report that uses a flexible budget and a static budget. Determine the flexible budget variance, the sales volume variance, and the static budget variance. Ensure to report if each variance is favourable or unfavourable.

Turtle Toys Unlimited manufactures children's toys. The company is evaluating the new toy product for toddlers. The company budgeted to sell 735 toys for $105 each. The variable costs include direct materials cost of $15 per unit and direct labour of $30 per unit. Fixed costs are estimated to be $8,000. Actual for the year are as follows: The Company sold 650 toys for $93 each. Actual variable costs were a total of $26,000 for the toys that were sold. Actual fixed costs were $10,000. Required Prepare a performance report that uses a flexible budget and a static budget. Determine the flexible budget variance, the sales volume variance, and the static budget variance. Ensure to report if each variance is favourable or unfavourable.

Name: Question 3 miterTurtle Toys Unlimited manufactures children's toys. T
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Description: Question 3 miterTurtle Toys Unlimited manufactures children's toys. The company is evaluating the new toyproduct for toddlers. The company budgeted to sell 735 toys for $105 each. The variable costsinclude direct materials cost of $15 per unit and d

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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