Walton Company has provided the following 2018 data: Required a. & b. Prepare a
ID: 2405973 • Letter: W
Question
Walton Company has provided the following 2018 data:
Required
a. & b. Prepare a budgeted and actual income statement for internal use. Separate operating income from net income in the statements. Calculate variances and identify them as favorable (F) or unfavorable (U) by comparing the budgeted and actual amounts determined. (Select "None" if there is no effect (i.e., zero variance).
Answer is not complete.
Budget Sales $ 505,000 Variable product costs 195,000 Variable selling expense 45,000 Other variable expenses 3,200 Fixed product costs 16,500 Fixed selling expense 23,900 Other fixed expenses 1,700 Interest expense 720 Variances Sales 8,300 U Variable product costs 4,900 F Variable selling expense 1,500 U Other variable expenses 1,100 U Fixed product costs 270 F Fixed selling expense 430 F Other fixed expenses 170 U Interest expense 150 FExplanation / Answer
WALTON COMPANY INTERNAL INCOME STATEMENT FOR 2018 BUDGET($) ACTUAL($) VARIENCE($) Sales 505,000 496,700 8,300 U variable Exp: Product cost 195,000 190,100 4,900 F Selling Exp 45,000 46,500 1,500 U Other Exp 3,200 4,300 1,100 U Contribution Margin 261,800 255,800 6,000 U Fixed Exp: Product cost 16,500 16,230 270 F Selling Exp 23,900 23,470 430 F Other Exp 1,700 1870 170 U Operating Income(loss) 219,700 214,230 5,470 U Interest Exp 720 570 150 F Net Income (Loss) 218,980 213,660 5,320 U
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.