The master budget at Windsor, Inc., last period called for sales of 90,000 units
ID: 2466716 • Letter: T
Question
The master budget at Windsor, Inc., last period called for sales of 90,000 units at $24.00 each. The costs were estimated to be $9.00 variable per unit and $600,000 fixed. During the period, actual production and actual sales were 92,000 units. The selling price was $24.30 per unit. Variable costs were $10.90 per unit. Actual fixed costs were $600,000.
Prepare a profit variance analysis like the one in Exhibit 16.5. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Leave no cells blank - be certain to enter "0" wherever required.)
Required:
Explanation / Answer
Working NOte
Particulars Actual Variance Budgeted Sales (Units) 92000 2000 90000 F Sales Revenue 2235600 75600 2160000 F Less: Variable Cost 176700 -633300 810000 U Contribution Margin 2058900 708900 1350000 F Fixed Cost 600000 0 600000 NA Net Income 1458900 708900 750000 FRelated Questions
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