William works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $105 and $207 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 780 pairs of clogs and 220 pairs of boots. The variable cost per pair was $49 for clogs and $76 for boots. At the end of the year, William evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. (a) Actual sales volume: clogs, 935; boots, 165. Actual selling price: clogs, $115 per pair; boots, $198 per pair. Actual per-unit variable costs for each product were the same as budgeted. For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1) master budget, (2) flexible budget, and (3) actual income statement. Total revenues Total variable costs GA SA Master Budget 10 SA Flexible Budget tA SA Actual
William works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $105 and $207 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 780 pairs of clogs and 220 pairs of boots. The variable cost per pair was $49 for clogs and $76 for boots. At the end of the year, William evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. (a) Actual sales volume: clogs, 935; boots, 165. Actual selling price: clogs, $115 per pair; boots, $198 per pair. Actual per-unit variable costs for each product were the same as budgeted. For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1) master budget, (2) flexible budget, and (3) actual income statement. Total revenues Total variable costs GA SA Master Budget 10 SA Flexible Budget tA SA Actual
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please don't give image format
Transcribed Image Text:(b)
Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each.
Sales price variance
Sales activity variance
$
Transcribed Image Text:William works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots
typically sell for $105 and $207 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company
expected to sell 780 pairs of clogs and 220 pairs of boots. The variable cost per pair was $49 for clogs and $76 for boots.
At the end of the year, William evaluated the company's sales and contribution margin amounts against the budget. Actual results for
the year were as follows.
(a)
Actual sales volume: clogs, 935; boots, 165.
Actual selling price: clogs, $115 per pair; boots, $198 per pair.
Actual per-unit variable costs for each product were the same as budgeted.
For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1)
master budget, (2) flexible budget, and (3) actual income statement.
Total revenues
Total variable costs
LA
$
Total contribution margin $
Master Budget
$
LA
$
tA
$
LA
Flexible Budget
$
$
LA
tA
$
Actual
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