Question: Compute variances for the following items and indicate the effect of each variance by selecting Favorable or Unfavorable. (Input all amounts as positive values. Omit
Compute variances for the following items and indicate the effect of each variance by selecting "Favorable" or "Unfavorable". (Input all amounts as positive values. Omit the "$" sign in your response.) |
| Item | Budget | Actual | Variance | Effect | |||||
| Sales price | $ | 650 | $ | 525 | $ | ||||
| Sales revenue | $ | 580,000 | $ | 600,000 | $ | ||||
| Cost of goods sold | $ | 385,000 | $ | 360,000 | $ | ||||
| Material purchases at 5,000 pounds | $ | 275,000 | $ | 280,000 | $ | ||||
| Materials usage | $ | 180,000 | $ | 178,000 | $ | ||||
| Production volume | 950 | units | 900 | units | units | ||||
| Wages at 4,000 hours | $ | 60,000 | $ | 58,700 | $ | ||||
| Labor usage at $16 per hour | $ | 96,000 | $ | 97,000 | $ | ||||
| Research and development expense | $ | 22,000 | $ | 25,000 | $ | ||||
| Selling and administrative expenses | $ | 49,000 | $ | 40,000 | $ | ||||
| | |||||||||
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock