Question
RTI Companys master budget calls for production and sale of 18,900 units for $98,280; variable costs of $43,470; and fixed costs of $18,400. During the
RTI Companys master budget calls for production and sale of 18,900 units for $98,280; variable costs of $43,470; and fixed costs of $18,400. During the most recent period, the company incurred $32,900 of variable costs to produce and sell 18,400 units for $85,900. During this same period, the company earned $25,900 of operating income. (Do not round intermediate calculations. Round final answer to the nearest whole dollar.) |
Required: |
1. | Determine the following for RTI Company: |
a. | Flexible-budget operating income. |
b. | Flexible-budget variance, in terms of contribution margin. |
c. | Flexible-budget variance, in terms of operating income. |
d. | Sales volume variance, in terms of contribution margin. |
e. | Sales volume variance, in terms of operating income. |
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