EXHIBIT 14.4 Breakdown of Total Operating Income Variance (1) 15) Master (Static) Budget Actual 780 $629,600 350 950 $288,650 160,650 $128.000 SCHMIDT MACHINERY COMPANY Analysis of Financial Results For October 2019 (2) (3) Flexible-Budget Flexible Variances Budget 0 780 $15,600F $624,000 SOF 351,000 $15.650F $273,000 10.6500 150,000 $ 5.000F $123,000 $ Sales Vannble costs Contribution margin Fixed costs Operating Income (4) Sales Volume Variances 2200 $176,000u 99.000F $ 77.000U 0 $ 77,000u 1,000 $800,000 450,000 $350,000 150,000 S. $200,000 Analysis of Total Operating Income Variance Total operating income variance =$128,000-$200,000=$72,000U Flexible-budget variance - $128,000 - $123,000 $5,000F Sales volume variance $123.000 - $200.000 $77,000U Line tollowing information appies to the questions displayed below.) As part of its comprehensive planning and control system, Mopar Company uses a master budget and subsequent variance analysis. You are given the following information that pertains to the company's only product. XL-10, for the month of December Required: 1. Using text Exhibit 14.4 as a guide complete the missing parts of the following profit report for December 2. Based on your completed prolit report, determine the dollar amount, and label (Favorable or Unfavorable) each of the following variances for December: a. Total master (static) budget variance (also referred to as the total operating income variance for the period). b. Total flexible-budget variance. c. Sales volume variance, in terms of operating income. d. Sales volume variance, in terms of contribution margin. e. Selling price variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using text Exhibit 14.4 as a guide, complete the missing parts of the following profit report for December. (If a variance has no amount, select "None" in the corresponding dropdown ceil.) Actual results Flexible-budget variances O None O None Flexible Sales volume variances budget 116,000 16,000 Favorable $ 580,000 $ 80,000 Favorable 5 $ Unit sales Sales Variable costs Contribution margin Fixed 116,000 580,000 440.800 139,200 20.apa Master (static) budget 100,000 $ 500,000 300,000 $ 200.000 91.00 Complete this question by entering your answers in the tabs below. Required 1 Required 2 7. Based on your completed pronit report, determine the dollar amount, and label (Favorable or Unfavorable)) each of the following variances for December: (If a variance has no amount, select "None" in the corresponding dropdown cell.) a. Total master (static) budget variance (also referred to as the total operating income variance for the period). b. Total flexible-budget variance. c. Sales volume variance, in terms of operating income. d. Sales volume variance, in terms of contribution margin. e. Selling price variance Show less a Total master static) budget variance b. Total flexible-budget varance C. Sales volume variance, in terms of operating income Sales volume variance, in terms of contribution margin e. Selling price variance d
