Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with B? Your answer is correct. For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin

Need help with B?

image text in transcribedimage text in transcribedimage text in transcribed Your answer is correct. For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1) master budget, (2) flexible budget, and (3) actual income statement. Joseph works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $104 and $208 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 730 pairs of clogs and 270 pairs of boots. The variable cost per pair was $49 for clogs and $79 for boots. At the end of the year, Joseph evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. - Actual sales volume: clogs, 880 ; boots, 220 . - Actual selling price: clogs, \$115 per pair; boots, \$197 per pair. - Actual per-unit variable costs for each product were the same as budgeted. Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each. Sales price variance $ Sales activity variance $

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

Global Financial Accounting And Reporting Principles And Analysis

Authors: Peter J. Walton, Walter Aerts

3rd Edition

1408062860, 9781408062869

More Books

Students also viewed these Accounting questions

Question

State the uses of job description.

Answered: 1 week ago

Question

Explain in detail the different methods of performance appraisal .

Answered: 1 week ago