Question
The master budget at Western Company last period called for sales of 225,800 units at $9.8 each. The costs were estimated to be $3.83 variable
The master budget at Western Company last period called for sales of 225,800 units at $9.8 each. The costs were estimated to be $3.83 variable per unit and $225,800 fixed. During the period, actual production and actual sales were 230,800 unit. The selling price was $9.90 per unit. Variable costs were $5.30 per unit. Actual fixed costs were $225,800.
Required:
Prepare a sales activity variance analysis. (Indicate the effect of each variance by selecting F for favorable, or U for unfavorable. If there is no effect, do not select either option.)
| WESTERN COMPANY | |||
| Sales Activity Variance | |||
| Flexible Budget | Sales Activity Variance | Master Budget | |
Sales revenue |
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Less: |
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Variable costs |
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Contribution margin |
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Less: |
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Fixed costs |
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Operating profits |
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