Top managers of Lortan Industries predicted the following year’s sales of 147,000 units of its product at a unit price of $9.20. Actual sales for the year were 144,000 units at $11.60 each. Variable expenses were budgeted at $2.35 per unit, and actual variable expenses were $2.80 per unit. Actual fixed expenses of $430,000 exceeded budgeted fixed expenses by $27,500. Prepare Lortan Industries’ income statement performance report. What variance contributed most to the year’s favourable results? What caused this variance?
Answer to relevant QuestionsManco has a relevant range extending to 31,000 units each month. The following performance report provides information about Manco’s budget and actual performance for November. Requirement Find the missing data for letters ...Recall that Kool-Time’s relevant range is 0 to 11 pools per month. Explain whether Kool Time would have a sales volume variance for fixed expenses in Exhibit 10-7 if In exhibit a. Kool-Time installs 14 pools per month. b. ...Refer to the Groovy Bottles Data Set in E10-53B. In Exercise Groovy Bottles is a manufacturer of ceramic bottles. The company has the following standards: Direct materials (clay)....................... 1.3 kg per ...One System assembles PCs and uses flexible budgeting and a standard cost system. One System allocates overhead based on the number of direct materials parts. The company’s performance report includes the following selected ...Preston manufactures embroidered jackets. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a jacket is based on the static budget ...
Post your question