Exercise 16-22 (Algo) Sales Activity Variance (LO 16-3) The master budget at Western Company last period...

 

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Exercise 16-22 (Algo) Sales Activity Variance (LO 16-3) The master budget at Western Company last period called for sales of 226,500 units at $10.5 each. The costs were estimated to be $3.90 variable per unit and $226,500 fixed. During the period, actual production and actual sales were 231,500 units. The selling price was $10.60 per unit. Variable costs were $6.00 per unit. Actual fixed costs were $226,500. Required: Prepare a sales activity variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profits WESTERN COMPANY Sales Activity Variance Flexible Budget Sales Activity Variance $ $ 0 $ $ Master Budget 0 0 Exercise 16-22 (Algo) Sales Activity Variance (LO 16-3) The master budget at Western Company last period called for sales of 226,500 units at $10.5 each. The costs were estimated to be $3.90 variable per unit and $226,500 fixed. During the period, actual production and actual sales were 231,500 units. The selling price was $10.60 per unit. Variable costs were $6.00 per unit. Actual fixed costs were $226,500. Required: Prepare a sales activity variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profits WESTERN COMPANY Sales Activity Variance Flexible Budget Sales Activity Variance $ $ 0 $ $ Master Budget 0 0

Answer rating: 100% (QA)

1 2 3 A B Actual Budget 231500 2453900 69 69 226500 D ... View the full answer