Farr Industries Inc. manufactures only one product. For the year ended December 31, the contribution margin...
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Farr Industries Inc. manufactures only one product. For the year ended December 31, the contribution margin increased by $47.410 from the planned level of $1,323,600. The president of Farr Industries Inc. has expressed concern about such a small increase in contribution margin and has requested a follow-up report. The following data have been gathered from the accounting records for the year ended December 31: 2 Sales 3 Variable costs: 4 Variable cost of goods sold Variable selling and administrative expenses. Total variable costs 7 Contribution margin 8 Number of units sold 9 Per unit: 10 Sales price 11 Variable cost of goods sold 1) Variable selling and administrative expenses 6 Actual $2,780,640.00 Planned $144.00 58:00 15.00 $2,757,500.00 $1,119,980.00 $1,191,240.00 289,650.00 242,660.00 $1,409,630.00 $1,433,900.00 $1,371,010.00 $1,323,600.00 19,310.00 22,060.00 $125.00 54.00 11.00 Difference - Increase (Decrease) $23,140.00 $(71,260.00) 46,990,00 $(24,270.00) $47,410.00 Farr Industries Inc. manufactures only one product. For the year ended December 31, the contribution margin increased by $47.410 from the planned level of $1,323,600. The president of Farr Industries Inc. has expressed concern about such a small increase in contribution margin and has requested a follow-up report. The following data have been gathered from the accounting records for the year ended December 31: 2 Sales 3 Variable costs: 4 Variable cost of goods sold Variable selling and administrative expenses. Total variable costs 7 Contribution margin 8 Number of units sold 9 Per unit: 10 Sales price 11 Variable cost of goods sold 1) Variable selling and administrative expenses 6 Actual $2,780,640.00 Planned $144.00 58:00 15.00 $2,757,500.00 $1,119,980.00 $1,191,240.00 289,650.00 242,660.00 $1,409,630.00 $1,433,900.00 $1,371,010.00 $1,323,600.00 19,310.00 22,060.00 $125.00 54.00 11.00 Difference - Increase (Decrease) $23,140.00 $(71,260.00) 46,990,00 $(24,270.00) $47,410.00
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Contribution Margin Analysis Report for Farr Industries Inc for the year ended December 31 Sales Actual 278064000 Planned 275750000 Difference 2314000 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1337270595
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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