Company El Mundo Inc. shows the following data: Budget Actual Units 192.212 249.644 Sales 2.883.180 3.245.378 COGS
Question:
Company El Mundo Inc. shows the following data:
Budget | Actual | |
Units | 192.212 | 249.644 |
Sales | 2.883.180 | 3.245.378 |
COGS | 2.075.890 | 2.336.672 |
Margin 1 | 807.290 | 908.706 |
Direct Labor | 240.000 | 256.000 |
Indirect labor | 120.000 | 144.000 |
depreciation | 6.000 | 6.000 |
Margin 2 | 441.290 | 502.706 |
Sales and marketing | 240.000 | 285.000 |
Commissions | 86.495 | 97.361 |
Administration | 60.000 | 60.000 |
Local taxes | 4.000 | 4.000 |
Operating income | 50.795 | 56.344 |
You are requested to find deviations between actual and budget for all income statement accounts.
Show deviations in % over budget.
Show all Income statement lines as percentage of Sales.
Explain the deviation in sales, and split it between volume variance and price variance.
Show income statement per unit for both Budget and actual.
Give an explanation for the deviations of the company.
Expert Answer:
To calculate deviations between actual and budget for all income statement accounts and express them as percentages of the budget we will use the given data Budget Units 192212 Sales 2883180 COGS 2075... View the full answer
