Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required a. d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes

image text in transcribed
Required a. d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 29.000 and 31,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 31000 units. Indicate whether the variances are favorable (F) or unfavorable (U) (Select "None" if there is no effect (.e., zero variance)) Volume Variances Answer is not complete. Master Flexible Budgets Budget 30.000 29,000 31,000 $27,000,000 25,100,000 22,000,000 Number of units Sales revenue F $ 90,000 > U U 18,000 9,000 12.000 OOOO 18 5,400,000 5 220,000 9 2.700,000 2610,000 133 3.780,000 3,650,400 14 4320,000 4,170,000 20.099,946 9,900,000 12 249,600 Variable manufacturing costs Materials Labor Manufacturing Overhead Vanable selling general and administrative costs Contribution margin Fixed costs Manufacturing Overhead Fixed selling, general, and administrative costs U O 0 >>>> 14,400U 36,000F Olo 0 None 0 None Net income $26.999 946 $9.900,000 12 249 600 $36.000 F > Required a. d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 29.000 and 31,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 31000 units. Indicate whether the variances are favorable (F) or unfavorable (U) (Select "None" if there is no effect (.e., zero variance)) Volume Variances Answer is not complete. Master Flexible Budgets Budget 30.000 29,000 31,000 $27,000,000 25,100,000 22,000,000 Number of units Sales revenue F $ 90,000 > U U 18,000 9,000 12.000 OOOO 18 5,400,000 5 220,000 9 2.700,000 2610,000 133 3.780,000 3,650,400 14 4320,000 4,170,000 20.099,946 9,900,000 12 249,600 Variable manufacturing costs Materials Labor Manufacturing Overhead Vanable selling general and administrative costs Contribution margin Fixed costs Manufacturing Overhead Fixed selling, general, and administrative costs U O 0 >>>> 14,400U 36,000F Olo 0 None 0 None Net income $26.999 946 $9.900,000 12 249 600 $36.000 F >

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_2

Step: 3

blur-text-image_3

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

Horngrens Accounting The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0136162185, 9780136162186

More Books

Students also viewed these Accounting questions