Calculate variance analysis using given datanbsptarget

Assignment Help Financial Accounting

Reference no: EM13356029

Calculate Variance Analysis using given data.

Target Company's actual results for the period were:

Sales Volume (in units):	400,000

Sales Revenues	$2,440,000
Variable Costs:
Manufacturing	$1,060,000
Mktg & Admin	748,000	1,808,000
Contribution Margin	632,000
Fixed Costs:
Manufacturing	400,000
Mktg & Admin	200,000	600,000
Operating Profit	32,000

The company originally planned to produce and sell 350,000 at $6 each. At that volume variable manufacturing costs were budgeted at $2.50, and variable marketing and administrative costs were budgeted at $2.00 each. In addition, the company expected an operating profit of $25,000.

A. In tabular format, recreate the master budget and prepare the flexible budget.

B. Calculate the sales-volume variance, sales price variance, and the total fixed cost variance.

Reference no: EM13356029

Questions Cloud

Planning a fund-raising dinner original plan new deluxe : planning a fund-raising dinner original plan new deluxe event plan tickets that must be sold for the more deluxe event

Overhead allocation computation the unit cost of product : overhead allocation computation the unit cost of product uses an abc system cost drivers machine hours materials

High-low method determining an equation for electricity : high-low method determining an equation for electricity cost forecasting electricity cost at a volume using such

Optimal production mix calculationoptimal corporation : optimal production mix calculation.optimal corporation produces two products a and b.nbsp management wants the product

Calculate variance analysis using given datanbsptarget : calculate variance analysis using given data.nbsptarget companys actual results for the period weresales volume in

Cost profit analysis in case of new equipmentbest company : cost profit analysis in case of new equipment.best company has the opportunity to expand capacity of current

Difference in profits between two methods of costingabc : difference in profits between two methods of costing.abc company has one machine on which it can produce either of two

Impact on net income due to changes in pricesmennekes : impact on net income due to changes in prices.mennekes company manufactures the plugs used in its manufacturing cycle

Calculate overhead cost allocation rate estimated total : calculate overhead cost allocation rate estimated total manufacturing costs.fox manufacturing is a small textile

User Account

All Pages