Able Company manufactures tables for schools. The 2015 operating budget is based on sales of 44,000 units
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Question:
Able Company manufactures tables for schools. The 2015 operating budget is based on sales of 44,000 units at $55 per table.
Operating income is anticipated to be $132,000. Budgeted variable costs are $35 per unit, while fixed costs total $660,000.
Actual income for 2015 was a surprising $477,000 on actual sales of 46,000 units at $57 each. Actual variable costs were $33 per unit and fixed costs totaled $627,000.
Required:
Prepare a variance analysis report with both flexible-budget and sales-volume variances.
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
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