Jake, Inc., is a manufacturer that just completed the first month of a new fiscal year. After reviewing the variances of actual results from the master budget, the finance department provided an Actual vs. Budget Income Statement. The majority of the fixed costs result from activities of the marketing and facilities departments, and the sales operations department is responsible for revenue. Based on the information given, determine the variances. In the Amount column, enter the appropriate amount for each variance. Enter all amounts as positive values. In the Favorable or unfavorable column, select from the option list provided whether each variance is favorable or unfavorable. Each choice may be used once, more than once, or not at all.

(Please show calculations)

Amount $ Favorable or Unfavorable

1. Flexible-budget revenue variance

2. Sales-volume revenue variance

3. Flexible-budget direct labor variance

4. Sales-volume direct materials variance

5. Static- budget revenue variance

 

Transcribed Image Text:

Units sold Revenue Variable costs Jake, Inc. Actual vs Budget Income Statement For the month ended May 31, Year 2 Direct materials. Direct labor Variable overhead Contribution margin Fixed costs Operating income Actual 9,000 $ 756,000 $(459,000) (63,000) (36.000) $198.000 (105,000) $ 90,000 Budget 8,000 $ 680.000 $(396,000) (60,000) (32.000) $ 192.000 (105,500) $ 16,500 Units sold Revenue Variable costs Jake, Inc. Actual vs Budget Income Statement For the month ended May 31, Year 2 Direct materials. Direct labor Variable overhead Contribution margin Fixed costs Operating income Actual 9,000 $ 756,000 $(459,000) (63,000) (36.000) $198.000 (105,000) $ 90,000 Budget 8,000 $ 680.000 $(396,000) (60,000) (32.000) $ 192.000 (105,500) $ 16,500

Answer rating: 100% (QA)

1 Flexible Budget Revenue Variance Cactual Price Standard Priceactual sale Stand... View the full answer