ABC Inc. Has the flexible budgeted income statement for the period ended in December 31, 2019 at
Fantastic news! We've Found the answer you've been seeking!
Question:
ABC Inc. Has the flexible budgeted income statement for the period ended in December 31, 2019 at 600 units sold as follows:
Sales (100 price per unit *600 units) 600,000
- Cost of gold sold (600*50) 300,0000
- Gross profit 300,000
- Operating expenses:
- Wages and salaries (10,000+ 10*600) 16,000
- Supplies (5000+2*600) 6,200
- Insurance 3,000
- Total expenses 25,200
- Net operating income 274,800
Whereas the actual income statement for the period ended in December 31, 2019 at 600 units sold as follows:
Sales 650,000
- Cost of gold sold 300,000
- Gross profit 350,000
- Operating expenses:
- Wages and salaries 20,000
- Supplies) 7,000
- Insurance 3,000
- Total expenses 30,000
- Net operating income 320,000
Required: compute the variance and specify whichever favorable and unfavorable variance is.
Related Book For
Managerial Accounting
ISBN: 978-0618777181
8th Edition
Authors: Susan V. Crosson, Belverd E. Needles
Posted Date: