Delaney Company has the following flexible budget formulas and amounts: Selling
ID: 2575914 • Letter: D
Question
Delaney Company has the following flexible budget formulas and amounts:
Selling price per unit
$54.00
Direct materials per unit
18.00
Direct labor per unit
12.00
Variable factory overhead per unit
7.00
Variable selling and administrative expenses per unit
4.00
Fixed factory overhead
$450,000
Fixed selling and administrative expenses
100,000
Actual results for the month of October for the production and sale of 48,000 units were as follows:
Sales revenue
$2,605,000
Direct materials
868,000
Direct labor
572,000
Variable factory overhead
334,000
Variable selling and administrative expenses
195,000
Fixed factory overhead
458,000
Fixed selling and administrative expenses
105,000
Prepare a performance report for the month of October.
Selling price per unit
$54.00
Direct materials per unit
18.00
Direct labor per unit
12.00
Variable factory overhead per unit
7.00
Variable selling and administrative expenses per unit
4.00
Fixed factory overhead
$450,000
Fixed selling and administrative expenses
100,000
Explanation / Answer
performance report Actual Revenue & Spending Flexible variance budget Sales revenue 2,605,000 13,000 F 2592000 less:Variable expense direct materials 868,000 4,000 U 864000 direct labor 572,000 4,000 F 576000 variable factory overhead 334,000 2,000 F 336000 variable selling and administrative expense 195,000 3,000 U 192000 total variable expense 1,969,000 1,000 U 1968000 contribution margin 636,000 12,000 F 624000 fixed factory overhead 458,000 8,000 U 450,000 fixed selling & adm expense 105,000 5,000 U 100,000 total fixed expense 563,000 13,000 U 550,000 net income 73,000 1,000 U 74,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.