The master budget at Windsor, Inc., last period called for sales of 90,000 units at $36 each. The costs were estimated to be $15 variable per unit and $900,000 fixed. During the period, actual production and actual sales were 92,000 units. The selling price was $36.45 per unit. Variable costs were $17.70 per unit. Actual fixed costs were $900,000.

Required:

Prepare a profit variance. (Input all amounts as positive values. Leave no cells blank, be certain to insert "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

	Actual (92,000 Units)	Manufacturing Variances		Sales Price Variance		Flexible Budget (92,000 Units)	Activity Variance		Master Budget (90,000 Units)
Sales revenue	$			$	(Click to select)NoneFU	$	$	(Click to select)FUNone	$
Less:
Variable manufacturing costs			(Click to select)NoneFU					(Click to select)FUNone
Contribution margin	$	$	(Click to select)NoneUF	$	(Click to select)FNoneU	$	$	(Click to select)UNoneF	$
Less:
Fixed manufacturing costs								(Click to select)NoneFU
Operating profits	$	$	(Click to select)NoneFU	$	(Click to select)UFNone	$	$	(Click to select)NoneUF	$

References

eBook & Resources

WorksheetDifficulty: Medium

Exercise 16-18 Profit Variance Analysis (L.O. 4)Learning Objective: 16-04 Prepare and use a profit variance analysis.

Profit Variance Analysis as a Key Tool for Managers

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