Question
The following data are for the month of January for the Submissive Company, a maker of boots: Master-budget data: Actual results: Sales of 30,000 pairs
The following data are for the month of January for the Submissive Company, a maker of boots:
| Master-budget data: | Actual results: |
| Sales of 30,000 pairs at $70 per pair | Sales of 32,000 pairs at $68 per pair |
| variable costs of $45 per pair; | variable costs of $48 per pair; |
| $250,000 total fixed costs | $238,000 total fixed costs |
(Show Workings)
a) Calculate the operating income under flexible budget.
b) Assume that ACTUAL operating income is $405,000, and master budgeted operating income is $503,000. Calculate the January Sales activity variance at operating income (indicate F or U)
Answer:
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Financial Accounting
Authors: Anne Britton, Chris Waterston
4th Edition
0273703609, 978-0273703600
