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Question 2 a) Volume Rate Revenue Plan Actuals Plan Actuals Plan Actuals AGA 1000 1200 $ 56.00 $ 63.33 $ 56,000 $ 76,000 Mobile Phone
Question 2
a)
| Volume | Rate | Revenue | ||||
| Plan | Actuals | Plan | Actuals | Plan | Actuals | |
| AGA | 1000 | 1200 | $ 56.00 | $ 63.33 | $ 56,000 | $ 76,000 |
| Mobile Phone % | 80% | 90% | ||||
| Mobile Phone | 800 | 1080 | $ 65.00 | $ 68.00 | $ 52,000 | $ 73,440 |
| Tablets | 200 | 120 | $ 20.00 | $ 21.33 | $ 4,000 | $ 2,560 |
| AGA Var | $ 20,000 | |||||
| How to explain variance (highlighted) | ||||||
| 1 | how much is from 200 more volume | |||||
| 2 | how much is from higher Mobile Phone % | |||||
| 3 | how much is from higher rate | |||||
b)
| Volume | Rate | Revenue | ||||
| Plan | Actuals | Plan | Actuals | Plan | Actuals | |
| AGA | 1000 | 1200 | $ 52.00 | $ 56.00 | $ 52,000 | $ 67,200 |
| Mobile Phone % | 80% | 90% | ||||
| Mobile Phone | 800 | 1080 | $ 60.00 | $ 60.00 | $ 48,000 | $ 64,800 |
| Tablets | 200 | 120 | $ 20.00 | $ 20.00 | $ 4,000 | $ 2,400 |
| AGA Var | $ 15,200 | |||||
| How to explain total AGA variance (highlighted)? | ||||||
| 1 | Out of $15,200 how much is from 200 more volume | |||||
| 2 | Out of $15,200 how much is from higher Mobile Phone % | |||||
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Financial Accounting An International Introduction
Authors: David Alexander
7th Edition
129229583X, 978-1292295831
