What was the actual operating income for the period
Course:- Accounting Basics
Reference No.:- EM132284008

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question - As the new accountant for Cohen & Co., you have been asked to provide a succinct analysis of financial performance for the year just ended. You obtain the following information that pertains to the company's sole product:



Master (Static) Budget

Units sold






Variable costs



Fixed costs



Required -

1. What was the actual operating income for the period?

2. What was the company's master (static) budget operating income for the period?

3. (a) What was the total master (static) budget variance, in terms of operating income, for the period? (b) Is this variance favorable (F) or unfavorable (U)? (Note: The total master (static) budget variance is also referred to as the total operating income variance for the period.)

4. The total master (static) budget variance for a period can be decomposed into a total flexible-budget variance and a sales volume variance. (a) What was the total flexible-budget variance for the period? (b) Was this variance favorable (F) or unfavorable (U)? (c) What was the sales volume variance for the period? (d) Was this variance favorable (F) or unfavorable (U)?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Jack Herington has owned and operated a proprietorship for several years. On January 1, he decides to terminate this business and become a partner in the firm of Herington and
If the job contained 520 units and the company billed at 60% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?
Babariga acquired the rights to run a quarry from a parcel of land owned by Ajonibode. Babariga's accounting year ends on 31 December and payment to Ajonibode is made on the 1
On January 1, 2014, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales
Select any contrarian fund amongst the "Dogs of the Dow." How did it perform in 2008 and 2009? Discuss why it did perform well and if it did not outperform its peers see if y
TCO3 Patrick Ross, the president of Ross's Wild Game Company, has asked for information about the cost behavior of manufacturing overhead costs. Specifically, he wants to know
Bonnie would like to have only the longest 10% of the calls redirected to a technical support manager. How long must a technical support call last before it qualifies f
The Wei Corporation expects next year's net income to be $15 million. The firm's debt ratio is currently 40 %. Wei has 12 million of profitable investestment opportunites, a