Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Revenue Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Income Master Budget 17,500 $259,000 $45,000 $25,000 $125,000 $195,000 $64,000 $20,250 $13,000 $33,250 $30,750 Budget Formula $2.57 $1.43 $7.14 Actual Amounts 17,000 $255,000 $38,000 $25,500 $129,500 $193,000 $62,000 $20,250 $13,000 $33,250 $28,750 Flexible Budget 17,000 $255,000 $43,714 $24,286 Variance 500 4,000 $20,250 $13,000 7,000 500 $33,250 $32,321 4,500 2,000 2,000 2,000 $38,000 $25,500 $121,429 $129,500 Actual 17,000 $255,000 $189,429 $193,000 $65,571 $62,000 $20,250 $13,000 $33,250 $28,750 Variance Fav/Unfav 5,714 1,214 8,071 3,571 3,571 3,571 % Diff Investigate?
Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Revenue Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Income Master Budget 17,500 $259,000 $45,000 $25,000 $125,000 $195,000 $64,000 $20,250 $13,000 $33,250 $30,750 Budget Formula $2.57 $1.43 $7.14 Actual Amounts 17,000 $255,000 $38,000 $25,500 $129,500 $193,000 $62,000 $20,250 $13,000 $33,250 $28,750 Flexible Budget 17,000 $255,000 $43,714 $24,286 Variance 500 4,000 $20,250 $13,000 7,000 500 $33,250 $32,321 4,500 2,000 2,000 2,000 $38,000 $25,500 $121,429 $129,500 Actual 17,000 $255,000 $189,429 $193,000 $65,571 $62,000 $20,250 $13,000 $33,250 $28,750 Variance Fav/Unfav 5,714 1,214 8,071 3,571 3,571 3,571 % Diff Investigate?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ss
![Units
Sales
Variable costs
Direct labor
Direct Material
Variable Manufacturing
Total variable costs
Contribution Margin
Fixed costs
Manufacturing
Selling & Admin
Total fixed costs
Operating Revenue
Units
Sales
Variable costs
Direct labor
Direct Material
Variable Manufacturing
Total variable costs
Contribution Margin
Fixed costs
Manufacturing
Selling & Admin
Total fixed costs
Operating Income
Master Budget
17,500
$259,000
$45,000
$25,000
$125,000
$195,000
$64,000
$20,250
$13,000
$33,250
$30,750
Budget Formula
$2.57
$1.43
$7.14
Actual Amounts.
17,000
$255,000
$38,000
$25,500
$129,500
$193,000
$62,000
$20,250
$13,000
$33,250
$28,750
Flexible Budget
17,000
$255,000
Variance
500
4,000
$20,250
$13,000
$33,250
$32,321
7,000
500
4,500
2,000
2,000
2,000
Actual Variance Fav/Unfav
17,000
$255,000
$43,714
$38,000
$24,286
$25,500
$121,429 $129,500
$189,429 $193,000
$65,571
$62,000
$20,250
$13,000
$33,250
$28,750
5,714
1,214
8,071
3,571
3,571
3,571
% Diff
Investigate?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedc2d1f9-b77d-4fbd-9e59-0ce4099c2b3d%2Fa9d28b7a-c9c7-42e5-baae-e50f6a3e1605%2F6h19ke7_processed.png&w=3840&q=75)
Transcribed Image Text:Units
Sales
Variable costs
Direct labor
Direct Material
Variable Manufacturing
Total variable costs
Contribution Margin
Fixed costs
Manufacturing
Selling & Admin
Total fixed costs
Operating Revenue
Units
Sales
Variable costs
Direct labor
Direct Material
Variable Manufacturing
Total variable costs
Contribution Margin
Fixed costs
Manufacturing
Selling & Admin
Total fixed costs
Operating Income
Master Budget
17,500
$259,000
$45,000
$25,000
$125,000
$195,000
$64,000
$20,250
$13,000
$33,250
$30,750
Budget Formula
$2.57
$1.43
$7.14
Actual Amounts.
17,000
$255,000
$38,000
$25,500
$129,500
$193,000
$62,000
$20,250
$13,000
$33,250
$28,750
Flexible Budget
17,000
$255,000
Variance
500
4,000
$20,250
$13,000
$33,250
$32,321
7,000
500
4,500
2,000
2,000
2,000
Actual Variance Fav/Unfav
17,000
$255,000
$43,714
$38,000
$24,286
$25,500
$121,429 $129,500
$189,429 $193,000
$65,571
$62,000
$20,250
$13,000
$33,250
$28,750
5,714
1,214
8,071
3,571
3,571
3,571
% Diff
Investigate?
![✓ Details Using Management by Exception, use a 12% benchmark to
determine which variances must be investigated. \table[[, Master
Budget, Actual Amounts,Variance], [Units, 17, 500, 17,000, 500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedc2d1f9-b77d-4fbd-9e59-0ce4099c2b3d%2Fa9d28b7a-c9c7-42e5-baae-e50f6a3e1605%2Fiescqwj_processed.png&w=3840&q=75)
Transcribed Image Text:✓ Details Using Management by Exception, use a 12% benchmark to
determine which variances must be investigated. \table[[, Master
Budget, Actual Amounts,Variance], [Units, 17, 500, 17,000, 500
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