Question
QUESTION 1 (40 points) CC Corp estimated the following financial data, for the 2020 production budget: Sales of 122,000 units Sales price of $40 per
QUESTION 1 (40 points)
CC Corp estimated the following financial data, for the 2020 production budget:
Sales of 122,000 units
Sales price of $40 per unit
Variable expenses of $9.90 per unit
Fixed costs of $3,050,000 for the year
At year end, actual sales data and costs were:
Sales of 125,000 units
Sales price of $38 per unit
Variable expenses of $10.50 per unit
Fixed costs of $3,000,000 for the year
A.Create an Income Statement Performance Report, including favourable/unfavourable ratings for all Flex Budget Variances and Sales Volume Variances.
B.Briefly explain the operating income flex budget result.
C.If the Direct Materials Price Variance was $50,000 Favourable, and the Direct Materials Efficiency Variance was $90,000 Unfavourable, what was the Direct
Labour Flex Budget Variance?Assume that the only other variable expense was variable overhead, and that its flex budget variance was zero.
QUESTION 2 (40 points)
Outdoor Inc recorded the following flex budget and actual results during November 2019:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started