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The next year's budget for Benny, Inc., is given below: Product 1-2 Sales $945,000-688500 Variable costs 459,900-297,000 Fixed costs 300,000-300,000 Net income $185,100-$91,500 Units 126,000-54,000 Market share 12%-20.0%
At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold: Product Line- Units- Sales- Mkt share 1- 126,200- $958,579- 16.0% 2- 56,800- $721,010- 14.2% Required: (Be sure to indicate whether the variance is favorable or unfavorable.) a. Compute the sales activity variance for each product.b. Compute the market share variance for each product.c. Compute the industry volume variance for each product.
1. The Initial Borrowings required are determined by the amount required to start the project less the Cash Invested by the Corporation. The loans will always be principle & inte
Do I use the contribution per unit and the total sales for the department in order to calculate the p/v ratio for a department
Average costing method has the following main advantages: 1.It is a realistic costing method useful to management in analyzing operating results and appraising future production
Lindon Company is the exclusive distributor for an automotive product that sells for $43 per unit and has a CM ratio of 35%. The company''s fixed expenses are $421,400 per year. Th
Automotive Products (AP) designs, manufactures, and sells automotive parts. It has 3 main operating departments: design, engineering, and production. 1.Design ñ the
Accrued income is an amount earned although not in reality received during the accounting period or till the date of preparation of last accounts for the period concerned. The firs
SD manufactures and sells a small range of timber based products. The main differences b/w the products are their size and the type of timber they used. SD prepares annual budgets
Flexible budgeting is a reporting system wherin the
classsification of overheads
Usefulness of Variance Analysis Carefully note that while prices are being charged to production, it can be done at the actual or standard price. For purposes of making varian
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