4: 1015(0complete) This Bank Management Printers, Inc., produces kuxury company\

Question

4: 1015(0complete) This Bank Management Printers, Inc., produces kuxury company's operating budget and actual results for September 2014 indluded these deta: (Click the icon to view the operating budget and ach al reeds) checibooks with throe checks and stubs per page. Each checkbook is designed for an individual customer and in ordered through the custon that the operating income for September was much lower than anticipatied, despite a highen-than-budgeted s The executive vice president of the company observed per unit. As the company's per-output-unit revenue and per-output- Read the requirements it. As y selling prioe and a lower-thar management accountant, you have been asked to provide explanations for the disappointna r -unit variable costs without detailed analysis of budgoted inputs Data Tabe -budget-based variance analysis of the September performance. Requirement 1. Prepare a statio Begin with the actual rosults, then compute the static budgot and the static-budget variancss. Label each variance The budgoted amounts for September 2014 were: Number of checkbooks 15,000 Actual Results Static-Budget Static Seling price per book 20 Budget Variable cost per book Units sold Fixed costs for the month 145,000 The actual results for September 2014 were as follows: Variable costs Contribution margin Fixed costs Operating income (loss) Requirement 2. Propare a flexible-budget-based variance analysis of the September perfarmance Choose from any list or enter any number in the input fields and then continue to the next question 12,000 Number of checkbooks produced and sold Average seling price per book Variable cost per book Flxed costs for the month 21 - S 150,000 Print Done Choose from any list or enter any number in the input flelds and then continue to the next question

Explanation / Answer

1.

2.

3. The flexible-budget includes the static-budget variance. This allows the managers to see the portion of the variance that arose because sales price and costs were either higher or lower than expected, as shown in the flexible-budget variance column, and the portion of the variance that arose because the sales volume was different than expected, as shown in the sales-volume variance column.

Please check exact wordings provided in the drop-downs which could vary from those mentioned above. Please provide the same to complete the second sentence.

Actual Results Static-Budget Variances Static Budget Units sold 12000 3000 U 15000 Revenues 252000 48000 U 300000 Variable costs 84000 36000 F 120000 Contribution margin 168000 12000 U 180000 Fixed costs 150000 5000 U 145000 Operating income (loss) 18000 17000 U 35000

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