Question
Snider Company manufactures floor lamps. Some of the company's data was misplaced. Use the following information to replace the lost data and document if the
Snider Company manufactures floor lamps. Some of the company's data was misplaced. Use the following information to replace the lost data and document if the variance is favorable or unfavorable when required.
|
| Actual Results | Flexible Budget Variances | Flexible Budget | Sales-Volume Variances | Static Budget |
| Units sold | 490,000 |
| 490,000 |
| 448,350 |
| Revenues | $187,250 | $5,000 F | (18) | $6,260 U | (19) |
| Variable costs | (20) | $890 U | $71,260 | $10,800 F | $82,060 |
| Fixed costs | $36,670 | $3,740 F | $40,410 | 0 | $40,410 |
| Operating income | $78,430 | (21) | $70,580 | (22) | $66,040 |
a) What is the flexible budget variance?
b) What are the static budget revenues?
c) What are the variable costs for the actual budget?
d) What is the flexible budget operating income variance? Favorable/ Unfavorable?
e) What are the sales-volume variance in operating income? Favorable/ Unfavorable?
f) What is the total static-budget variance? Favorable/ Unfavorable?
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