assume that in October
3 Assume that in October 2019 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 1,020 units for $720 each. During this month, the company incurred $520,200 total variable costs and $180,100 total fixed costs. The master (static) budget data for the month are as given in Exhibit 14.1. Required: 1. Prepare a flexible budget for the production and sale of 1,020 units. 2. Compute for October 2019: a. The sales volume variance, in terms of operating income. Indicate whether this variance was favorable (F) or unfavorable (U). b. The sales volume variance, in terms of contribution margin. Indicate whether this variance was favorable (F) or unfavorable (U). 3. Compute for October 2019: a. The total flexible-budget (FB) variance. Indicate whether this variance was favorable (F) or unfavorable (U). b. The total variable cost flexible-budget variance. Indicate whether this variance was favorable (F) or unfavorable (U). c. The total fixed cost flexible-budget (FB) variance. Indicate whether this variance was favorable (F) or unfavorable (U). d. The selling price variance. Indicate whether this variance was favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget for the production and sale of 1,020 units. Units sold Sales 3 Assume that in October 2019 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 1,020 units for $720 each. During this month, the company incurred $520,200 total variable costs and $180,100 total fixed costs. The master (static) budget data for the month are as given in Exhibit 14.1. Required: 1. Prepare a flexible budget for the production and sale of 1,020 units. 2. Compute for October 2019: a. The sales volume variance, in terms of operating income. Indicate whether this variance was favorable (F) or unfavorable (U). b. The sales volume variance, in terms of contribution margin. Indicate whether this variance was favorable (F) or unfavorable (U). 3. Compute for October 2019: a. The total flexible-budget (FB) variance. Indicate whether this variance was favorable (F) or unfavorable (U). b. The total variable cost flexible-budget variance. Indicate whether this variance was favorable (F) or unfavorable (U). c. The total fixed cost flexible-budget (FB) variance. Indicate whether this variance was favorable (F) or unfavorable (U). d. The selling price variance. Indicate whether this variance was favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute for October 2019: a. The sales volume variance, in terms of operating income. Indicate whether this variance was favorable (F) or unfavorable (U). b. The sales volume variance, in terms of contribution margin. Indicate whether this variance was favorable (F) or unfavorable (U). Show less A Sales Volume Variance Operating income Contribution margin Assume that in October 2019 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 1,020 units for $720 each. During this month, the company incurred $520,200 total variable costs and $180,100 total xed costs. The master (static) budget data for the month are as given in Exhibit 14.1. Required: 1. Prepare a exible budget for the production and sale of1,020 units. 2. Compute for October 2019: a. The sales volume variance. in terms of operating income. Indicate whether this variance was favorable (F) or unfavorable (U). b. The sales volume variance, in terms of contribution margin. Indicate whether this variance was favorable (F) or unfavorable (U). 3. Compute for October 2019: a. The total exible-budget (FB) variance. Indicate whether this variance was favorable (F) or unfavorable (U). b. The total variable cost exible-budget variance. Indicate whether this variance was favorable (F) or unfavorable (U). c. The total xed cost flexible-budget (FB) variance. Indicate whether this variance was favorable (F) or unfavorable (U). d. The selling price variance. Indicate whether this variance was favorable (F) or unfavorable (U). Complete this question by entering your answers In the tabs below. Compute for October 2019: a. The total exible-budget (FB) variance. Indicate whether this variance was favorable (F) or unfavorable (U). b. The total variable cost exible-budget variance. Indicate whether this variance was favorable (F) or unfavorable (U). c. The total xed cost exible-budget (FB) variance. Indicate whether this variance was favorable (F) or unfavorable (U). d. The selling price variance. Indicate whether this variance was favorable (F) or unfavorable (U). Show Ila-IA a The total exible-budget (FB) variance - u The total variable cost exible-budget variance - a The total xed cost exible-budget (FB) variance _ ( Required 2
