Question 1

Top managers of Stenback Industries predicted 2018 sales of 14,400 units of its product at a unit price of $8.50. Actual sales for the year were 14,000 units at $9.00 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $46,000 exceeded budgeted fixed costs by $3,000. Prepare Stenback's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0"for any zero balances. For any S0 variances, leave the Favorable (F/Unfavorable (U) input blank.) Stenback Industries Flexible Budget Performance Report For the Year Ended December 31, 2018 2 3 5 (1)-(3) Budget Flexible (3) - (5) Sales Volume Variance Flexible Amounts Per Unit Actual Results Budget Variance Static Budget Budget Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income 0 n I a higher-than-expected price a lower-than-expected price What variance contributed most to the year's favorable results? What caused this variance? the normal price The variance contributing most to the year's excellent results is the favorable This variance resulted from selling the company's product at Operating Income flexible budget variance for operating income flexible budget variance for sales revenue sales volume variance for operating income sales volume variance for sales revenue What variance contributed most to the year's favorable results? What caused The variance contributing most to the year's excellent results is the favorable This variance resulted from selling the company's product at