Question: Clayton Industries has gathered the following information about the actual

Clayton Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year (all data is in millions).
Sales....................................................................................... $ 908,280
Variable Cost of Goods Sold.................................................. $ 310,590
Variable Operating Expenses................................................. $ 78,300
Direct Fixed Manufacturing Overhead.................................. $ 112,270
Direct Fixed Operating Expenses.......................................... $ 22,000
Common Fixed Expenses....................................................... $ 23,690
Budgeted data for the same time period for the pharmaceutical segment are as follows (all data is in millions):

Budgeted sales in units................................................................................ 8,700
Budgeted average selling price per unit..................................................... $ 90
Variable Cost of Goods Sold per unit.......................................................... $ 35
Variable Operating Expenses per unit......................................................... $ 10
Direct Fixed Manufacturing Overhead (in total).......................................... $ 103,000
Direct Fixed Operating Expenses (in total).................................................. $ 20,000
Common Fixed Expenses Allocated to the Pharmaceutical Segment........ $ 23,000

Prepare a segment margin performance report for the pharmaceutical segment. In this ­report, be sure to include lines for the contribution margin, the segment margin, and operating income. Calculate a variance and a variance percentage for each line in the ­report. Round to the nearest hundredth for the variance percentages (for example, if your answer is 16.2384%, round it to 16.24%).




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  • CreatedAugust 27, 2014
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