Winston Company had two products code named X and Y. The firm had the following budget for August:Product X$ 296,040197,360$ 98,68050,000Product Y$ 541,000216,400$324,600108,000$216,600$ 50$ 48,680$ 120SalesVariable CostsContribution MarginFixed costsOperating IncomeSelling Price per unitOn September 1, the following actual operating results for August were reported:Product X$366,800203,500$ 163,30058,500$ 104,8003,170SalesVariable CostsContribution MarginFixed costsOperating IncomeUnits SoldProduct Y$ 546,800224,500$322,300116,500$ 205,8009,850Total industry volume for both products X and Y was estimated to be 138,500 units at the time of the budget. Actual industry volume for the period for products X and Y was 106,800 units.The contribution margin sales volume variance for Product X is:Multiple Choice$12,500 unfavorable.$15,800 favorable.$23,200 favorable.$23,200 unfavorable.Total$ 837, 040413,760$ 423,280158,000$ 265,280$28,120 favorable.Total$ 913,600428,000$ 485,600175,000$ 310,600

Variance is the result of the amount of expected value and actual results. It can be calculated by…

Winston Company had two products code named X and Y. The firm had the following budget for August: Product X $ 296,040 197,360 $ 98,680 50,000 $ 48,680 $ 120 Product Y $ 541,000 216,400 $ 324,600 108,000 $ 216,600 $ 50 Sales Variable Costs Contribution Margin Fixed costs Operating Income Selling Price per unit On September 1, the following actual operating results for August were reported: Product X $ 366,800 203,500 $ 163,300 58,500 $ 104,800 3,170 Sales Variable Costs Contribution Margin Product Y $ 546,800 224,500 $ 322,300 116,500 $ 205,800 9,850 Total industry volume for both products X and Y was estimated to be 138,500 units at the time of the budget. Actual industry volume for the period for products X and Y was 106,800 units. The contribution margin sales volume variance for Product X is: Fixed costs Operating Income Units Sold Multiple Choice $12,500 unfavorable. $15,800 favorable. $23,200 favorable. $23,200 unfavorable. Total $ 837,040 413,760 $ 423,280 158,000 $ 265,280 $28,120 favorable. Total $ 913,600 428,000 $ 485,600 175,000 $ 310,600

Winston Company had two products code named X and Y. The firm had the following budget for August: Product X $ 296,040 197,360 $ 98,680 50,000 $ 48,680 $ 120 Product Y $ 541,000 216,400 $ 324,600 108,000 $ 216,600 $ 50 Sales Variable Costs Contribution Margin Fixed costs Operating Income Selling Price per unit On September 1, the following actual operating results for August were reported: Product X $ 366,800 203,500 $ 163,300 58,500 $ 104,800 3,170 Sales Variable Costs Contribution Margin Product Y $ 546,800 224,500 $ 322,300 116,500 $ 205,800 9,850 Total industry volume for both products X and Y was estimated to be 138,500 units at the time of the budget. Actual industry volume for the period for products X and Y was 106,800 units. The contribution margin sales volume variance for Product X is: Fixed costs Operating Income Units Sold Multiple Choice $12,500 unfavorable. $15,800 favorable. $23,200 favorable. $23,200 unfavorable. Total $ 837,040 413,760 $ 423,280 158,000 $ 265,280 $28,120 favorable. Total $ 913,600 428,000 $ 485,600 175,000 $ 310,600

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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