Question
The UticaUtica Company produces engine parts for car manufacturers. A new accountant intern at UticaUtica has accidentally deleted the calculations on the company's variance analysis
The
UticaUtica
Company produces engine parts for car manufacturers. A new accountant intern at
UticaUtica
has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31,
20172017.
The following table is what remains of the data.
Performance Report
Year Ended December 31, 2017
Actual
Flexible-Budget
Flexible
Sales-Volume
Static
Results
Variances
Budget
Variances
Budget
Units sold
104,000
98,000
Revenues (sales)
$676,000
$401,800
Variable costs
480,000
245,000
Contribution margin
196,000
156,800
Fixed costs
124,200
85,000
Operating income
$71,800
$71,800
| The UticaUtica Company produces engine parts for car manufacturers. A new accountant intern at UticaUtica has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, 20172017. The following table is what remains of the data. LOADING... (Click the icon to view the data.) Read the requirements LOADING... . 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). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round your answers to the nearest whole dollar.)
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.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). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round your answers to the nearest whole dollar.)
|
| Actual | Flexible-Budget | Flexible | |||
|
| Results | Variance | Budget | |||
| Units sold | 104,000 |
|
|
| ||
| Revenues (sales) | $676,000 |
|
|
| ||
| Variable costs | 480,000 |
|
|
| ||
| Contribution margin | 196,000 |
|
|
| ||
| Fixed costs | 124,200 |
|
|
| ||
| Operating income | $71,800 |
|
|
| ||
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