Cost Accounting

Part 4 of 7 Points: 1.23 of 3 Save Previous question Bank Management Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2017 included these date: Click the icon to view the operating budget and actual results.) The executive vice president of the company observed that the operating income for September was much lower than anticipated, despite a higher than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to provide explanations for the disappointing September results. Bank Management develops its flexible budget on the basis of budgeted per-output-unit revenue and por-output-unit variable costs 1. without detailed analysis of budgeted inputs. ue Read the requirements: 5:3 Bogin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For 3/3 variances with a $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label. Enter operating losses with a minun sign or parentheses) Actual Flexible-Budget Flexible Results Variances Budget ReUnits sold 12,200 OF 12200 Revenues $ 305,000 Variable costs 61.000 3224 Contribution margin 244,000 Copyr Fixed costs 115,300 $ Operating income (oss) 128,700 produce ank. The erating Data table ned for an individua - X he comp bgetedy Bank M eted inpy ed, despite a higher d to provide explan hue and per-output- The budgeted amounts for September 2017 were: Number of checkbooks 15,000 Selling price per book $ 23 Variable cost per book $ 6 Fixed costs for the month $ 110,000 The actual results for September 2017 were as follows: Number of checkbooks produced and sold 12,200 Average selling price per book 25 Variable cost per book 5 Fixed costs for the month 115,300 n comple ke sure to favorable or unfavora perating losses with a Actual Results 12,20 305,000 61,000 $ $ * 244,00 115,300 Print Done 128,700