Top managers of White Industries predicted 2018 sales of 14,400 units of its product at a...
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Top managers of White Industries predicted 2018 sales of 14,400 units of its product at a unit price of $9.00. Actual sales for the year were 14,200 units at $11.00 each. Variable costs were budgeted at $2.10 per unit, and actual variable costs were $2.20 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $4,600. Prepare White's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Amounts Actual Budget Flexible Volume Static Variance Aoudget Per Unit Results Variance Budget Units 14,200 14,200 14,400 Sales Revenue $4 9.00 $ 156,200 $ 28,400 FS 127,800 $ 1,800 U $ 129,600 Variable Costs 2.10 31,240 1,420 U 29,820 420 F 30,240 Contribution Margin 124,960 26.980 F 97,980 1,380 U 99,360 Fixed Costs Operating Income Top managers of White Industries predicted 2018 sales of 14,400 units of its product at a unit price of $9.00. Actual sales for the year were 14,200 units at $11.00 each. Variable costs were budgeted at $2.10 per unit, and actual variable costs were $2.20 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $4,600. Prepare White's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Amounts Actual Budget Flexible Volume Static Variance Aoudget Per Unit Results Variance Budget Units 14,200 14,200 14,400 Sales Revenue $4 9.00 $ 156,200 $ 28,400 FS 127,800 $ 1,800 U $ 129,600 Variable Costs 2.10 31,240 1,420 U 29,820 420 F 30,240 Contribution Margin 124,960 26.980 F 97,980 1,380 U 99,360 Fixed Costs Operating Income
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Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller-nobles, Brenda L. Mattison, Ella Mae Matsumura
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