The Company produces engine parts for car manufacturers. A new accountant intern at has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, . The following table is what remains of the data. LOADING...(Click the icon to view the data.) Read the requirementsLOADING....

The Groton Company produces engine parts for car manufacturers. A new accountant intern at Groton has accidentally deleted the calculations on the e company's variance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data Read the requirements, Requirement 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) Begin with the flexible budget columns, then the sales volume variance column. Label each variance as favorable (F) or unfavorable (U). Actual Flexible-Budget Flexible Results Variance Budget 110,000 Units sold 110000 Data table Revenues (sales) $ 687,500 Variable costs 435,000 Performance Report Contribution margin 252,500 Year Ended December 31, 2017 Fixed costs 181,250 Actual Static $ 71,250 Results Budget Operating income 110,000 95,000 Units sold Requirements Revenues (sales) $ 687,500 $ 308,750 1. Calculate all the required variances. (If your work is accurate, you will find that 435,000 Variable costs 142,500 the total static-budget variance is $0.) 2. What are the actual and budgeted selling prices? What are the actual and Contribution margin 252,500 166,250 budgeted variable costs per unit? 181,250 Fixed costs 95,000 3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here? 71,250 $ Operating income 71,250 $