Top managers of Kyler Industries predicted 2012 sales of 14,800 units of its product at a unit

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Top managers of Kyler Industries predicted 2012 sales of 14,800 units of its product at a unit price of $8.50. Actual sales for the year were 14,600 units at $10.50 each. Variable costs were budgeted at $2.20 per unit, and actual variable costs were $2.30 per unit. Actual fixed costs of $41,000 exceeded budgeted fixed costs by $4,500.
Requirement
1. Prepare Kyler’s income statement performance report. What variance contributed most to the year’s favorable results? What caused this variance?

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Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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