The following data relates to 20X8. Actual sales: 1,000 units @ $650 each Budgeted output and sales for the year: 900 units Standard selling price: $700 per unit Budgeted contribution per unit: $245 Budgeted profit per unit: $205 Required: Calculate the sales volume variance (under absorption and marginal costing) and the sales price variance. Radek Ltd has budgeted sales of 400 units at $2.50 each. The variable costs are expected to be $1.80 per unit, and there are no fixed costs. The actual sales were 500 units at $2 each and costs were as expected. Calculate the sales price and sales volume variances (using marginal costing). Standard costing
The following data relates to 20X8. Actual sales: 1,000 units @ $650 each Budgeted output and sales for the year: 900 units Standard selling price: $700 per unit Budgeted contribution per unit: $245 Budgeted profit per unit: $205 Required: Calculate the sales volume variance (under absorption and marginal costing) and the sales price variance. Radek Ltd has budgeted sales of 400 units at $2.50 each. The variable costs are expected to be $1.80 per unit, and there are no fixed costs. The actual sales were 500 units at $2 each and costs were as expected. Calculate the sales price and sales volume variances (using marginal costing). Standard costing
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Related questions
XYZ Company's budgeted and actual results for last year are asfollows:
Master budget | Actual results | |
Price | $450 | $650 |
Sales volume (units) | 8,000 | 6,500 |
Unit VC | $200 | $200 |
Fixed costs | $200,000 | $200,000 |
Required:
(a) Compute budgeted and actual revenue, costs and profits:
Master budget | Actual | |
Sales volume (units) | ||
Revenue | $ | $ |
Variable costs | $ | $ |
Contribution margin | $ | $ |
Fixed costs | $ | $ |
Profit | $ | $ |
In (b)-(d) below, enter favorable and unfavorable variances aspositive and negative numbers, without F or U.
(b) How much is the total profit variance?
(enter negative numbers with a minus, i.e. enter negative $100as -100 not ($100) ) $
(c) How much is the activity variance(=sales volumevariance)?
(enter negative numbers with a minus) $
(d) How much is the revenue variance (=sales price variance)?
(enter negative numbers with a minus) $
Problem 1:
Peaceful Corporation manufactures figurines based on thefollowing information.
Standard costs | $20 | |
Materials (4 ounces at $5) | $8 | |
Direct labor (1 hour per unit) | $4 | |
Variable overhead (based on direct labor hours) | ||
Fixed overhead budget | $19,000 | |
Actual results and costs | ||
Materials purchased | ||
Units | 9,000 | |
Cost | $39,600 | |
Materials used in production | ||
Finished product units | 2,000 | |
Raw material (ounces) | 8,200 | |
Direct labor hours | 2,000 | |
Direct labor cost | $20,000 | |
Variable overhead costs | $5,980 | |
Fixed overhead costs | $19,500 |
Required:
- Prepare a performance report for Peaceful using the following headings.
- Actual Production Costs
- Flexible Budget Costs
- Flexible Budget Variances
- Compute the following variances (show calculations).
- Materials usage variance
- Labor rate variance
- Labor efficiency variance
- Variable overhead spending variance
- Variable overhead efficiency variance
- Fixed overhead budget variance
- Give one possible explanation for each of the six variances computed in part b.
Problem 2:
The following is the current variable costing income statementfor Dolly Corporation.
Sales (5,000 units) | $100,000 | |
Variable expenses Cost of goods sold | $35,000 | |
Selling (10% of sales) | $10,000 | $45,000 |
Contribution margin | $55,000 | |
Fixed expenses | ||
Manufacturing overhead | $24,000 | |
Administrative | $12,500 | $36,500 |
Operating income | $18,500 |
Below is the following information on operations for DollyCorporation.
Beginning inventory (units) | 0 |
Units produced (units) | 6,000 |
Manufacturing costs | |
Direct labor (per unit) | $5.00 |
Direct materials (per unit) | $2.30 |
Variable overhead (per unit) | $2.40 |
Required:
Prepare an absorption costing income statement.
Problem 3:
The following information was compiled for two models of cellphones.
3G model | 4G model | Average | |
Budgeted Contribution Margin | $80.00 | $120.00 | $95.25 |
Budgeted Sales in Units | 28,000 | 18,000 | |
Actual Sales in Units | 28,600 | 16,500 |
Required:
Calculate the sales mix variance. (Show your calculations.)
I just need to reference numbers for the calculations
how to send my question with excel attachment ?
Use with Excel | |||||||||||||
The TV Corporation manufactures 2 types of TVs. The Basic TV | |||||||||||||
and the Deluxe TV. Budgeted and actual annual operating data areas follows: | |||||||||||||
Static Budget | Basic | Deluxe | Total | ||||||||||
Number units Sold | 60,000 | 40,000 | 100,000 | ||||||||||
Total Contribution Margin | $3,480,000 | $3,444,000 | $6,924,000 | ||||||||||
Budgeted CM per unit | $58.00 | $86.10 | |||||||||||
Actual Results | |||||||||||||
Number units sold | 59,850 | 45,150 | 105,000 | ||||||||||
Total Contribution Margin | $3,650,850 | $3,612,000 | $7,262,850 | ||||||||||
But, the actual industry volume was | 300,000 | Units | |||||||||||
Prior to the beginning of the year, a consulting firm estimatedthe total volume | |||||||||||||
for volume of the Basic and Deluxe industry category to be | 310,000 | Units | |||||||||||
Required: | |||||||||||||
Calculate the following information and variances on theworksheet entitled analysis. I have tried to give some helpfulhints. | |||||||||||||
Use the contribution margin approach in the following salesvariance analysis that follows. | |||||||||||||
a. Calculate the Static-budget variance. | I have tried to set up a model to use on the analysisworksheet. | Look at Exhibit 14-11 p.571 | |||||||||||
b. Calculate the contribution margin for the flexiblebudget. | |||||||||||||
c. Calculate the flexible budget variance. | |||||||||||||
d. Calculate the sales-volume variance. | |||||||||||||
e. Compute the actual sales-mix | |||||||||||||
f. Compute the budgeted sales-mix | |||||||||||||
g . Compute the sales-mix variance for each product andthen the total sales-mix variance like the table shown onpage 572. I have set up the table for you to fill in. | |||||||||||||
h. Compute the sales-quantity variance by type of machine andtotal | |||||||||||||
if total actual quantity is greater than total budgeted unitsthe sales-quantity will always be F and the opposite will occurwhen actual is less than budgeted). | |||||||||||||
i. Compute the market-share variance | |||||||||||||
j. Compute the market-size variance. | 4 | ||||||||||||
k. Comment on the results of the above variance analysis. Makesure your comments identify specific variances and | |||||||||||||
the impact of these variances on income. |
Do not forget to use the IF function to determine if thevariance is favorable or unfavorable. | ||||||
I used a formula approach like the author did and I expecteveryone to use cell references and use the Problem 2 worksheet asyour data for cell references. | ||||||
I will take off 5 pts. if you have not used cell references fromthe problem 2 worksheet as your reference for the calculations. Iwill take off 3 pts. for not using IF statements or 1/2 each. | ||||||
When you are adding multiple variances, either use the SUMIFfunction or a nested IF. | ||||||
Also, make sure you are using ABS function, since variancesshould not be positive and negative. | ||||||
I have color coded some areas that should match, since you canuse these variances to check your work since they should equal eachother. | ||||||
Comments in "K" are worth 1 pt. You need to clearly identifymultiple sales variance you have calculated and the impact inincome. | ||||||
a. Calculate the Static-budget variance. | $338,850 | F | ||||
Static Budgeted Variance =Actual total contribution margin lessStatic total Contribution margin | ||||||
Look at level 1 in Panel C in exhibit 14-11. | ||||||
b. Calculate the contribution margin for the flexiblebudget. | ||||||
Basic | Deluxe | Total | ||||
Budgeted contribution margin per unit | $58 | $86 | Do not Total | |||
Actual Number of units sold | Do not Total | |||||
Flexible -Budget Contribution Margin | ||||||
c. Calculate the flexible budget variance. | ||||||
d. Calculate the sales-volume variance. | ||||||
Check Figure: static budget variance=flexible budget | ||||||
variance+Sales volume Variance | ||||||
Basic | Deluxe | |||||
e. Calculate the Actual sales mix: | ||||||
f. Calculate the Budgeted sales mix: | ||||||
g . Compute the sales-mix variance for each product and then thetotal sales-mix variance like the table shown on page 572. I haveset up the table for you to fill in. | ||||||
Actual Units of All products sold | (Actual sales-mix%-Budgeted Sales Mix% | Budgeted Contribution Margin per unit | Sales-Mix Variance | |||
Basic | ||||||
Deluxe | ||||||
g. Total Sales mix variance | ||||||
Compute the sales-quantity variance by type of product andtotal. | ||||||
Basic | ||||||
Deluxe | ||||||
h. Total Sales quantity variance | ||||||
Check Figure: Sales-volume variance=Sales mixvariance+Sales Quantity Variance | ||||||
Calculate the Actual market share: | ||||||
Calculate the Budgeted market share: | ||||||
Calculate the budgeted contribution margin | ||||||
per composite unit of budgeted mix | ||||||
Lastly: | ||||||
I. Market-share Variance | ||||||
j. Compute the market-size variance. | ||||||
Check Figure: Sales-quantity variance=Market-sharevariance+Market size Variance | ||||||
k. Comment on the results of the above variance analysis. Makesure your comments identify specific variances and the impact ofthese variances on income. | ||||||