Return to a 1 [The following information applies to the questions displayed below.] As part of its comprehensive planning and control system, Mopar Company uses a master budget and subsequent variance analysis. You are given the following information that pertains to the company's only product, XL-10, for the month of December 0.66 points Exhibit 14-4.jpg (689x669) X + A https://ezt... Not syncing "0 Required: 1. Using text Exhibit 14.4 as a guide, complete the missing parts of the following profit report for December. 2. Based on your completed profit report, determine the dollar amount, and label (Favorable or Unfavorable) each of the following variances for December: a. Total master (static) budget variance (also referred to as the total operating income variance for the period). b. Total flexible-budget variance. C. Sales volume variance, in terms of operating income. d. Sales volume variance, in terms of contribution margin. e. Selling price variance. EXHIBIT 14.4 Breakdown of Total Operating Income Variance SCHMIDT MACHINERY COMPANY Analysis of Financial Results For October 2019 (2) (3) Flexible-Budget Flexible Variances Budget (1) (4) Sales Volume Variances (5) Master (Static) Budget X Answer is not complete. Actual Units 780 1,000 Complete this question by entering your answers in the tabs below. Sales Variable costs Contribution margin Fixed costs Operating income $639,600 350,950 $288,650 160,650 $128,000 0 $15,600F 50F $15,650F 10,650U $5,000F 780 $624,000 351,000 $273,000 150,000 $123,000 2200 $176,0000 99,000F $ 77,0000 0 $77,000u $800,000 450,000 $350,000 150,000 $200,000 Required 1 Required 2 Analysis of Total Operating-Income Variance 2. Based on your completed profit report, determine the dollar amount, and label (Favorable or Unfavorable)) each of the following variances for December: (If a variance has no amount, select "None" in the corresponding dropdown cell.) a. Total master (static) budget variance (also referred to as the total operating income variance for the period). b. Total flexible-budget variance. C. Sales volume variance, in terms of operating income. d. Sales volume variance, in terms of contribution margin. e. Selling price variance. Total operating-income variance" =$128,000-$200,000=$72,000U Show less A Flexible-budget variance =$128,000 - $123,000 =$5,000F Sales volume variance =$123.000 - $200,000 =$77,000U a b. Total master (static) budget variance Total flexible-budget variance Sales volume variance, in terms of operating income Sales volume variance, in terms of contribution margin Selling price variance *Budgeted fixed factory overhead cost = $120,000: budgeted fixed selling and administrative expense = $30,000 **Also called the total master (static) budget variance Note: U denotes an unfavorable effect on operating income, F denotes a favorable effect on operating income. C. d. e
