Question
Danner Fashions sells a line of women's dresses. Danner's performance report for November is shown below: (CMA adapted) The company uses a flexible budget to
Danner Fashions sells a line of women's dresses. Danner's performance report for November is shown below: (CMA adapted)
The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.
ActualBudgetDresses sold6,2007,440Sales$365,800$550,560Variable costs(179,800)(223,200)Contribution margin$186,000327,360Fixed Costs(120,000)(104,000)Operating income$66,000$223,360
The sales price variance for November is:
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Business Mathematics In Canada
Authors: Ernest Jerome
7th edition
978-0071091411, 71091416, 978-0070009899
