Refer to the information in Problem 24-3A. Pebco Companys actual income statement for 2011 follows. Required 1.
Question:
Refer to the information in Problem 24-3A. Pebco Company’s actual income statement for 2011 follows.
Required
1. Prepare a flexible budget performance report for 2011.
Analysis Component
2. Analyze and interpret both the
(a) Sales variance and
(b) Direct materialsvariance.
Transcribed Image Text:
PEBCO COMPANY Statement of Income from Operations For Year Ended December 31,201I Sales (24,000 units) Cost of goods sold $3,648,000 Direct materials.. Direct labor.. Machinery repairs (variable cost).. $1.400,000 360,000 60,000 250,000 218.000 nt equipment Utilities (fixed cost is $154,000) 55,000 2443,000 1,205,000 Gross proft 90,000 24,000 62,000 Shipping^...4....-. Sales salary (annual) Advertising expense Entertainment expense 376,000 General and administrative expenses 104,000 232.000 00,000 436,000 $393,000 Income from operations
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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