Question
I need help with sales price variance and sales activity variance!! (BTW I just put 0 for the ones that I had wrong) The master
I need help with sales price variance and sales activity variance!! (BTW I just put 0 for the ones that I had wrong)
The master budget at Western Company last period called for sales of 225,300 units at $9.30 each. The costs were estimated to be $3.78 variable per unit and $225,300 fixed. During the period, actual production and actual sales were 230,300 units. The selling price was $9.40 per unit. Variable costs were $4.80 per unit. Actual fixed costs were $225,300.
WESTERN COMPANY | |||||||||
Profit Variance Analysis | |||||||||
Actual Budget | Manufacturing Variances | Sales Price Variance | Flexible Budget | Sales Activity Variance | Master Budget | ||||
Sales revenue | $2,164,820selected answer correct | $0selected answer incorrect | Fselected answer correct | $2,141,790selected answer correct | $0selected answer incorrect | Fselected answer correct | $2,095,290selected answer correct | ||
Less: | |||||||||
Variable costs | 1,105,440selected answer correct | (234,906)selected answer correct | Uselected answer correct | 870,534selected answer correct | (18,900)selected answer correct | Uselected answer correct | 851,634selected answer correct | ||
Contribution margin | $1,059,380 | $(234,906)selected answer correct | Uselected answer correct | $0selected answer incorrect | Fselected answer correct | $1,271,256 | $0selected answer incorrect | Fselected answer correct | $1,243,656 |
Less: | |||||||||
Fixed costs | 225,300selected answer correct | 0selected answer correct | not attempted | 225,300selected answer correct | 0selected answer correct | not attempted | 225,300selected answer correct | ||
Operating profits | $834,080 | $(234,906)selected answer correct | Uselected answer correct | selected answer incorrect | Fselected answer correct | $1,045,956 | $50,630selected answer incorrect | Fselected answer correct | $1,018,356 |
Required:
Prepare a profit variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
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