The Richfield Company produces engine parts for car manufacturers. A new accountant intern at Richfield has...
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The Richfield Company produces engine parts for car manufacturers. A new accountant intern at Richfield has accidentally deleted the calculations on the company's variance analysis calculations or 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 CITO Data table Units sold Revenues (sales) $ Variable costs Contribution margin Fixed costs Operating income $ Actual Results 99,000 693,000 455,000 238,000 202,000 36,000 Performance Report Year Ended December 31, 2017 Flexible-Budget Variances Flexible Budget Sales-Volume Variances $ $ Static Budget 92,000 391,000 230,000 161,000 125,000 36,000 - X Requirements 1. Calculate all the required variances 2. What are the actual and budgeted selling price? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problem. What is the important lesson learned here? The Richfield Company produces engine parts for car manufacturers. A new accountant intern at Richfield has accidentally deleted the calculations on the company's variance analysis calculations or 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 CITO Data table Units sold Revenues (sales) $ Variable costs Contribution margin Fixed costs Operating income $ Actual Results 99,000 693,000 455,000 238,000 202,000 36,000 Performance Report Year Ended December 31, 2017 Flexible-Budget Variances Flexible Budget Sales-Volume Variances $ $ Static Budget 92,000 391,000 230,000 161,000 125,000 36,000 - X Requirements 1. Calculate all the required variances 2. What are the actual and budgeted selling price? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problem. What is the important lesson learned here? The Richfield Company produces engine parts for car manufacturers. A new accountant intern at Richfield has accidentally deleted the calculations on the company's variance analysis calculations or 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 CITO Data table Units sold Revenues (sales) $ Variable costs Contribution margin Fixed costs Operating income $ Actual Results 99,000 693,000 455,000 238,000 202,000 36,000 Performance Report Year Ended December 31, 2017 Flexible-Budget Variances Flexible Budget Sales-Volume Variances $ $ Static Budget 92,000 391,000 230,000 161,000 125,000 36,000 - X Requirements 1. Calculate all the required variances 2. What are the actual and budgeted selling price? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problem. What is the important lesson learned here? The Richfield Company produces engine parts for car manufacturers. A new accountant intern at Richfield has accidentally deleted the calculations on the company's variance analysis calculations or 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 CITO Data table Units sold Revenues (sales) $ Variable costs Contribution margin Fixed costs Operating income $ Actual Results 99,000 693,000 455,000 238,000 202,000 36,000 Performance Report Year Ended December 31, 2017 Flexible-Budget Variances Flexible Budget Sales-Volume Variances $ $ Static Budget 92,000 391,000 230,000 161,000 125,000 36,000 - X Requirements 1. Calculate all the required variances 2. What are the actual and budgeted selling price? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problem. What is the important lesson learned here?
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Answer rating: 100% (QA)
1 Calculate all the required variances a Sales Volume Variance Actual Units Sold Budgeted Units Sold Budgeted Selling Price 99000 92000 391000 16500 b ... 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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