Question
Performance Report Year Ended December 31, 2017 Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget Units sold 108,000 99,000 Revenues (sales) $702,000 $420,750
Performance Report | |||||
Year Ended December 31, 2017 | |||||
| Actual | Flexible-Budget | Flexible | Sales-Volume | Static |
| Results | Variances | Budget | Variances | Budget |
Units sold | 108,000 |
|
|
| 99,000 |
Revenues (sales) | $702,000 |
|
|
| $420,750 |
Variable costs | 430,000 |
|
|
| 237,600 |
Contribution margin | 272,000 |
|
|
| 183,150 |
Fixed costs | 193,850 |
|
|
| 105,000 |
Operating income | $78,150 |
|
|
| $78,150 |
The Beekman Company produces engine parts for car manufacturers. A new accountant intern at Beekman has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, 2017.
Requirement 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.)
Begin with the flexible budget columns, then the sales volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round your answers to the nearest whole dollar.)
Actual Results | Flexible- Budget Variance | Favorable / Unfavorable | Flexible Budget | |
---|---|---|---|---|
Units Sold | 108,000 | |||
Revenue (Sales) | $702,000 | |||
Variable Cost | 430,000 | |||
Contribution Margin | 272,000 | |||
Fixed Cost | 193,850 | |||
Operating Income | 78,150 |
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