Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that in October 2022 the Schmidt Machinery Company (Exhibit 11.1) manufactured and sold 1,050 units for $725 each. During this month, the company incurred

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Assume that in October 2022 the Schmidt Machinery Company (Exhibit 11.1) manufactured and sold 1,050 units for $725 each. During this month, the company incurred $567,000 total vatiable costs and $180,800 total froed costs. The master budget data for the month are as given in Exhibit 14.1 Required: 1. Prepare a flexible budget for the production and sale of 1,050 units 2. Compute for October 2022 a. The sales volume variance, in terms of operating income. Indicate whether this variance was favorable or unfavorable. b. The sales volume variance, in terms of contribution margin. Indicate whether thils variance was favorable or unfavorable. 3. Compute for October 2022. a. The total flexible budget variance. Indlcate whether this variance was favorable or unfavorable b. The total variable cost flexible budget variance. Indicate whether this variance was favorable or unfavorable. c. The total fixed cost flexible budget varlance. Indicate whether this variance was fovorable or untavorable d. The selling price varlance. Indicate whether this variance was favorable of untavorable. Complete this question by entering your answers in the tabs below. Prepare a flexible budget for the production and sale of 1,050 units. Complete this question by entering your answers in the tabs below. Prepare a flexible budget for the production and sale of 1,050 units. Complete this question by entering your answers in the tabs below. Compute for October 2022 : a. The sales volume variance, in terms of operating income. Indicate whether this variance was favorable or unfavorable. b. The sales volume variance, in terms of contribution margin. Indicate whether this variance was favorable or unfavorable. Compute for October 2022: a. The total flexible budget variance. Indicate whether this variance was favorable or unfavorable. b. The total variable cost flexible budget variance. Indicate whether this variance was favorable or unfavorable. c. The total fixed cost flexible budget variance. Indicate whether this variance was favorable or unfavorable. d. The selling price variance. Indicate whether this variance was favorable or unfavorable. Comparison of Actual and Budgeted Operating Income -U denotes an unfavorable effect on operating income. denotes a favorable effect on operating income Actual fixed factory overhead cost=$130,650; actual fixed selling and administrative costs =$30,000 Budgeted fixed factory overhead cost =$120,000; budgeted fixed selling and administrative costs =$30,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Peace Love Auditing Journal

Authors: Epic Love Books

1st Edition

1697161693, 978-1697161694

More Books

Students also viewed these Accounting questions