Munoz Educational Services had budgeted its training service charge at $69 per hour. The company planned to provide 31,000 hours of training services during the year. By lowering the service charge to $63 per hour, the company was able to increase the actual number of hours to 32,800. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) c. Did lowering the price of training services increase revenue?
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: The static budget variance of variable Cost = Actual variable Cost - Budgeted variable Cost
Q: Top managers of Kyler Industries predicted 2018 sales of 14,400 units of its product at a unit price…
A: Under flexible budget, the revenue per unit and the variable cot per unit are multiplied by actual…
Q: Franklin Educational Services had budgeted its training service charge at $84 per hour. The company…
A: 1) The Sales Volume Variance =(Actual Sales x Budgeted Price)-(Budgeted Sales x Budgeted Price )…
Q: Fogel Company expects to produce and sell 111,000 units for the period. The company’s flexible…
A: The flexible budget is prepared on the basis of estimated costs for the period. The controllable…
Q: Sunland Family Instruments makes cellos. During the past year, the company made 6,610 cellos even…
A: Standard labor rate = actual labor rate - 0.50 = 20 - 0.50 = $19.50 per hour
Q: Top managers of Juda Industries predicted 2018 sales of 14,700 units of its product at a unit price…
A: The budget preparation based on the actual output is defined as the flexible budget. The budget…
Q: Bingo Inc. wants to analyze the variances in its actual and budgeted gross profit. The following are…
A: Variance: It is difference between the budgeted and actual amount spend on material and labor. It…
Q: In a recent year, BMW sold 182,158 of its 1 Series cars. Assume the company expected to sell 191,158…
A: Formula: Sales price variance = ( Actual quantity x actual price ) - ( Actual quantity x standard…
Q: In September, Numbers Incorporated sold 40,000 units of its only product for $240,000, and incurred…
A: Organizations have variances in their budgeted costs and actual costs. However, the amount with the…
Q: Own sub unit of winter sport company had the following financial results last month: Monthly…
A: Hi student, Since there are multiple subparts, we will answer only the first three subparts. If you…
Q: fop managers of Marshall Industries predicted 2018 sales of 14,800 units of its product at a unit…
A: Budget is the estimation of revenues and expenses related to specific period of time in future.
Q: James Manufacturing has the following information available for July: Actual Results…
A: Solution Working note Flexible budget variable marketing and administrative cost = 37000 -9200 =…
Q: Campbell Industries has gathered the following information about the actual sales revenues and…
A: Performance report shows the variations in the budgeted and actual result of the company. This also…
Q: To calculate the performance report of advertising revenue at the Daily News for March 2021, below…
A: Revenue variance refers to difference between the budgeted and actual revenue. Revenue variance=…
Q: Voi Company manufactures remote control devices for cars. The following information was collected…
A:
Q: The LM30 Company produces circuits for TV manufacturers. A new accountant intern at LM30 has…
A: The variance is the difference between standard and actual production data. The variance can be…
Q: Fogel Co. expects to produce 103,000 units for the year. The company’s flexible budget for 103,000…
A: Variance is calculated by measuring the difference between the actual results and the flexible…
Q: In analyzing company operations, the controller of the Carson Corporation found a $250,000 favorable…
A: The flexible budget variance is calculated by comparing the results generated by a flexible budget…
Q: The following data relate to direct labor costs for the current period: Standard costs 7,300 hours…
A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked
Q: Spiral Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…
A: Overhead costs refer to the costs which occur in operating activity in a business. It also termed as…
Q: Spiral Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…
A: Variance is difference between budgeted and actual spending and volume. Unfavourable means it…
Q: Spiral Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…
A: Variance analysis helps management to analyzing the reason behind the differences arises between…
Q: CBH Associates is reeling from a decline in profits because of competition. For its most recent…
A: The above report helps in measuring the performance of employees and the efficiency of management by…
Q: Fogel Co. expects to produce 116,000 units for the year. The company’s flexible budget for 116,000…
A:
Q: Last year, the retailer's weekly variance of demand was 500 units. The variance of orders was 600,…
A: calculation of above requirement are as follows
Q: Deems Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…
A: SOLUTION- WORKING NOTE- TOTAL BUDGET OVERHEAD = FIXED BUDGET OVERHEAD +(VARIABLE FACTORY OVERHEAD…
Q: The management accountant of a business is calculating the monthly variances to review and control…
A: Sales volume profit variance is the variance between budgeted units sold and actual units sold with…
Q: What is the actual factory overhead measured in March?
A: calculate Standard overhead budgeted for actual activity level: Standard overhead budgeted for…
Q: Deems Company's budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…
A: Formula: Applied factory overhead = Fixed factory overhead + Standard direct labor + Favorable…
Q: Deems Company's budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…
A: Formula: Applied factory overhead = Budgeted fixed factory overhead + standard direct labor cost +…
Q: Spiral Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…
A: Applied Factory Overhead:-Applied overhead is the fixed-rate charged to a specific job or production…
Q: This year’s total sales of Bulldogs Inc. is P4,600,000. The following variances are determined: ·…
A: Change in sales = Sales price variance favorable + Sales volume variance unfavorable = 750,000 +…
Q: operating costs wer
A: Given as, Revenue $25 Operating costs $4.75 $3,150
Q: Fogel Company expects to produce and sell 116,000 units for the period. The company's flexible…
A: The flexible budget is prepared on the basis of standard rates and actual production data. The…
Q: In September, Numbers Incorporated sold 40,000 units of its only product for $339,000 and incurred a…
A: Formula: Total amount of variable costs in the flexible budget = Variable costs - Variable cost…
Q: What is the Sales Volume Variance under 4-way analysis?
A: Any variance can be evaluated in 4 ways The fixed price/spending variance The variable…
Q: The production cost for a waterproof phone case is $9 per unit and fixed costs are $27,000 per…
A: Standard cost = Total fixed costs + No. of units produced x Variable cost per unit = 27000 + 5000*9…
Q: ur sales manager to explain why budgeted revenues for your division are below expectations. The…
A: Sales Price Variance $30,008 Unfavorable Sales Volume Variance $10,780 Favorable Total revenue…
Q: MajorNet Systems is a start-up company that makes connectors for high-speed Internet connections.…
A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost.…
Q: Fogel Company expects to produce and sell 112.000 units for the period. The company's flexible…
A: Variable cost per unit = Total budgeted variable costs / budgeted production = $156800/112000 units…
Q: MajorNet Systems is a start-up company that makes connectors for high-speed Internet connections.…
A: Given information is: MajorNet Systems is a start-up company that makes connectors for high-speed…
Q: Fogel Company expects to produce and sell 110,000 units for the period. The company's flexible…
A: Variable overheads are those which changes with the variation in the activity or level of…
Q: Dickinsen Company gathered the following data for December: Planned Actual Sales price per unit…
A: Revenue price Variance = (Actual price per unit - Planned price per unit) x Actual number of units…
Q: White Mountain Sled Company manufactures children's snow sleds. The company's performance report for…
A: Formulas for sales price and sales volume variance Sales price variance = AQ * ( ASP - SSP) Sales…
Q: Prepare a comprehensive performance report for March. Assume that the static budget for March was…
A: A flexible budget is a budget that can change upon the change in the quantity or activity changes.…
Q: Hogan Tax Company considers 6,000 direct labor hours or 300 tax returns its normal monthly capacity.…
A: Variable overhead spending variances is the difference between what the variable production…
Q: The production cost for a waterproof phone case is $5 per unit and fixed costs are $27,110 per…
A: Standard cost=Variable cost per unit×Units+Fixed costs=$5×5,216+$27,110=$53,190
Q: Top managers of Cole Industries predicted 2018 sales of 14,600 units of its product at a unit price…
A: Formulas:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Jordan Educational Services had budgeted its training service charge at $71 per hour. The company planned to provide 31,000 hours of training services during the year. By lowering the service charge to $55 per hour, the company was able to increase the actual number of hours to 32,000. Required a. Determine the sales volume variance, and indicate whether it is favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). b. Determine the flexible budget variance, and indicate whether it is favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). c. Did lowering the price of training services increase revenue? a. Volume variance b. Flexible budget variance c. Did lowering the price of training services increase revenue? SalesFranklin Educational Services had budgeted its training service charge at $75 per hour. The company planned to provide 26,000 hours of training services during Year 3. By lowering the service charge to $57 per hour, the company was able to increase the actual number of hours to 27,600. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). c. Did lowering the price of training services increase revenue?Franklin Educational Services had budgeted its training service charge at $84 per hour. The company planned to provide 36,000 hours of training services during Year 3. By lowering the service charge to $66 per hour, the company was able to increase the actual number of hours to 37,900. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) c. Did lowering the price of training services increase revenue? Sales a. Volume variance b. Flexible budget variance c. Was the decision profitable ?
- Campbell Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year. E (Click the icon to view the actual data.) Prepare a segment margin performance report for the pharmaceutical segment. Calculate a variance and a variance percentage for each line in the report. Round to the nearest hundredth for the variance percentages (for example, if your answer is 16.2384%, round it to 16.24%). Budgeted data for the same time period for the pharmaceutical segment are as follows (all data are in millions): E (Click the icon to view the budgeted data.) Begin by preparing the performance report through the contribution margin line. Next, complete the report through the segment margin line, and then, finally, complete the report through the operating income line. (Enter the variances as positive numbers. Round the variance percentages to the nearest hundredth percent, X.XX%.) Performance Report Data table…Assume that a company's planned level of activity is 1,000 hours and its actual level of activity is 1,100 hours. Based on this information, the company's activity variance for revenue will be: Multiple Choice either favorable or unfavorable depending on the cost formula. zero. unfavorable. favorable.Classics, Ltd., details cars. Classics wants to compare this quarter’s results with those for last quarter, which is believed to be typical for operations. Assume that the following information is provided. Last Quarter This Quarter Number of detailings 440 523 Revenues $ 72,160 $ 68,800 Variable costs 27,920 31,920 Contribution margin $ 44,240 $ 36,880 Required: a. Compute the flexible budget and sales activity variance and prepare a profit variance analysis. (Hint: Use last quarter as the master budget and this quarter as “actual.”) b. What impact did the changes in number of detailings and average revenues (i.e., sales price) have on Classics, Ltd.’s contribution margin?
- Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019 - 480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The sales volume variance must be: A. 63,000 Unfavorable B. 90,000 Favorable C. 108,000 Favorable D. 108,000 Unfavorable6. A company budgets to sell 600 units of product F at a sales price of N30. The standard füll cost of production is N20 for variable costs and N8 for fixed cost, i.e. N28 in total, so that the standard profit is 2 per unit of product F. If actual sales are 620 units for N20,460. You are required to determine the: (a) Sales price variance, and (b) Sales volume variance. 7. Kanako Ltd, manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or elosing inventories and work-in- progress is negligible. The company operates a standard costing system and analysis of variance is made very month. The standard cost card for the product "ZOOM" is as follows: 0.5 kilos @ N4.00 per kilo 2hours @ N2.00 per hour 2 hours @ NO.30 per hour 2 hours @ N3.70 per hour Direct materials N2.00 Direct wages Variable overheads N4.00 N0.60 N7.40 N14.00 Fixed overheads Standard cost Standard profit Standard selling price N6.00 N20.00 Selling and administrative…Sammy Inc. wants to analyze the variances in its actual and budgeted gross profit. The following are available: Actual gross profit and actual gross profit ratio is P600,000 and 25%, respectively. • The actual sales are P400,000 more than the total budgeted sales. Budgeted sales price at actual quantity sold is P2,000,000 What is the Sales Volume Variance under 4-way analysis?
- PLEASE ANSWER THE FOLLOWING QUESTIONS: Requirements 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Data table Budget for 2020 Selling Variable Cost Cartons Product Price per Carton Sold Kostor $11.00 $ Limba $ 23.00 $ 6.40 16.15 Actual for 2020 Selling Variable Cost Cartons Price per Carton Sold 7.40 138,600 16.35 59,400 132,000 $11.60 S 88,000 $ 24.40 $Woodruff Flowering Plants provides the following information for the month of May: Actual Sales in units Contribution margin per unit For May, Woodruff will report a(n) OA. favorable sales - mix variance B. favorable market share variance OC. unfavorable market share variance D. unfavorable sales - mix variance Fuchsia 21,000 $22 Dogwood 4.500 $19 C Fuchsia Budget 18,000 $23 Dogwood 3,200 $18Bulldogs Inc. wants to analyze the variances in its actual and budgeted gross profit. The following are available:· Actual gross profit and actual gross profit ratio is P600,000 and 25%, respectively.· The actual sales are P400,000 more than the total budgeted sales.· Budgeted sales price at actual quantity sold is P2,000,000What is the Sales Volume Variance under 4-way analysis?