The Liberty Company produces engine parts for car manufacturers A new accountant intern at Liberty has...
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The Liberty Company produces engine parts for car manufacturers A new accountant intern at Liberty has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) Begin with the flexible budget columns, then the sales volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round your answers to the nearest whole dollar) Units sold Revenues (sales) $ Variable costs Contribution margin Fixed costs Operating income $ Actual Results 103,000 695,250 440,000 255,250 182,050 73,200 Flexible-Budget Variance Flexible Budget Actual Results Units sold Revenues (sales) $ Variable costs Contribution margin Fixed costs Operating income i Requirements $ 103,000 695,250 440,000 255,250 182,050 73,200 Performance Report Year Ended December 31, 2017 Flexible-Budget Flexible Variances Budget Sales-Volume Variances $ Print $ Done Static Budget 2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? 99,000 336,600 158,400 178,200 105,000 73,200 - 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) 3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here? X The Liberty Company produces engine parts for car manufacturers A new accountant intern at Liberty has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) Begin with the flexible budget columns, then the sales volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round your answers to the nearest whole dollar) Units sold Revenues (sales) $ Variable costs Contribution margin Fixed costs Operating income $ Actual Results 103,000 695,250 440,000 255,250 182,050 73,200 Flexible-Budget Variance Flexible Budget Actual Results Units sold Revenues (sales) $ Variable costs Contribution margin Fixed costs Operating income i Requirements $ 103,000 695,250 440,000 255,250 182,050 73,200 Performance Report Year Ended December 31, 2017 Flexible-Budget Flexible Variances Budget Sales-Volume Variances $ Print $ Done Static Budget 2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? 99,000 336,600 158,400 178,200 105,000 73,200 - 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) 3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here? X
Expert Answer:
Answer rating: 100% (QA)
Lets start by calculating the variances as per the provided data Flexible Budget Variances 1 Revenues Sales Variance Actual Revenues Flexible Budget R... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham
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