Question
23-17 (similar to) Question Help Top managers of ColeCole Industries predicted 20182018 sales of 15 comma 20015,200 units of its product at a unit price
23-17 (similar to) | Question Help
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Top managers of
ColeCole
Industries predicted
20182018
sales of
15 comma 20015,200
units of its product at a unit price of
$ 10.00$10.00.
Actual sales for the year were
14 comma 30014,300
units at
$ 11.00$11.00
each. Variable costs were budgeted at
$ 2.80$2.80
per unit, and actual variable costs were
$ 2.90$2.90
per unit. Actual fixed costs of
$ 50 comma 000$50,000
exceeded budgeted fixed costs by
$ 5 comma 500$5,500.
Prepare
ColeCole's
flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?
Cole Industries
Flexible Budget Performance Report
For the Year Ended December 31, 2018
1
2
3
4
5
(1) - (3)
(3) - (5)
Budget
Flexible
Sales
Amounts
Actual
Budget
Flexible
Volume
Static
Per Unit
Results
Variance
Budget
Variance
Budget
Units
14300
14300
15200
Sales Revenue
10
157300
143000
Variable Costs
2.90
41470
40040
Contribution Margin
115830
102960
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