Here is the budget and results for 20X1 of the Robbin lte company.

	Results (26000 boxes)	Budget initial (22000botes)
Sales	1812200$	1540000$
Matires premieres	315120$	264000$
Direct labor	518700$	440000$
Variable indirect manufacturing costs	202800$	176000$
Variable selling and administrative costs	183300$	154000$
Margin on variable costs	592280$	506000$
Fixed indirect manufacturing costs	106100$	105000$
Fixed selling and administrative costs	181725$	180000$
Profit before taxes	304455$	221000$

Work done (35 minutes)

1. Calculate the activity gap.
2. Calculate the sales price and cost variance (also called budget and yield variance).

Answer rating: 100% (QA)

Activity Gap The activity gap is the difference between the budgeted amount for a particular expense or revenue category and the actual amount incurre... View the full answer