Problem $17-64($Static$)$ Variances and Variance Investigation Skip to question $[$The following information applies to the questions displayed below.$]$ Goodwin Advisors offers financial advice on an hourly basis. The following information for the second quarter is the flexible budget based on the actual volume of $3,500$ hours: $$Flexible BudgetNumber of advising hours$3,500$Revenue$ $1,120,000$Variable costs$595,000$Contribution margin$ $525,000$Fixed costs$150,000$Operating profit$ $375,000$ The master budget for the second quarter was based on selling $4,000$ advising hours. The price variance was $$52,500$ favorable, the variable cost variance was $$70,000$ unfavorable, and the fixed cost variance was $$5,000$ favorable. Problem $17-64($Static$)$ Variances and Variance Investigation: Data Analysis and Visualization $($LO $17-6,7)$ Part $1($a and b$)$ Required: a$.$ Recreate the master budget for the second quarter for Goodwin. b$.$ Prepare the operating income statement for the second quarter for Goodwin. $5\mathrm{.}34$

Required:

points

a$.$ Recreate the master budget for the second quarter for Goodwin.

b$.$ Prepare the operating income statement for the second quarter for Goodwin.

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$\backslash$hline eBook $\backslash \backslash$

$\backslash$hline Print $\backslash \backslash$

$\backslash$hline References $\backslash \backslash$

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$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|$l$|$l$|$l$|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline & Actual $($based on $3,500$ hours$)$ & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Cost Variance$\}$ & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Price Variance$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Flexible Budget $($based on $3,500$ hours$)\}$ & Activity Variance & & Master Budget $($based on $4,000$ hours$)\backslash \backslash$

$\backslash$hline Revenue & & & & & $\backslash$$ & $52,500$ & F & $\backslash$$ & $1,120,000$ & & & $\backslash \backslash$

$\backslash$hline Variable costs & & $\backslash$$ & $70,000$ & U & & & & & $595,000$ & & & $\backslash \backslash$

$\backslash$hline Contribution margin & & $\backslash$$ & $70,000$ & U & $\backslash$$ & $52,500$ & F & $\backslash$$ & $525,000$ & & & $\backslash \backslash$

$\backslash$hline Fixed costs & & & $5,000$ & F & & & & & $150,000$ & & & $\backslash \backslash$

$\backslash$hline Operating profit & & $\backslash$$ & $65,000$ & U & $\backslash$$ & $52,500$ & F & $\backslash$$ & $375,000$ & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Required information

Problem $17-64($Static$)$ Variances and Variance Investigation

$[$The following information applies to the questions displayed below.$]$

Goodwin Advisors offers financial advice on an hourly basis. The following information for the second quarter is the flexible budget based on the actual volume of $3,500$ hours:

The master budget for the second quarter was based on selling $4,000$ advising hours. The price variance was $\backslash (\backslash$$ $52,500\backslash )$ favorable, the variable cost variance was $\backslash$$$70,000$ unfavorable, and the fixed cost variance was $\backslash$$$5,000$ favorable.

Problem $17-64($Static$)$ Variances and Variance Investigation: Data Analysis and Visualization $($LO $17-6,7)$ Part $1($a and b$)$

Required:

a$.$ Recreate the master budget for the second quarter for Goodwin.

b$.$ Prepare the operating income statement for the second quarter for Goodwin.