As the new accountant for Cohen & Company, 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 companys sole product:
Actual Master Budget
Units sold
Sales $ $
Variable costs
Fixed costs
Required:
What was the actual operating income for the period?
What was the companys master budget operating income for the period?
a What was the total master budget variance, in terms of operating income, for the period? b Is this variance favorable or unfavorable? If a variance has no amount, select "None" in the corresponding dropdown cell.
The total master budget variance for a period can be decomposed into a total flexible budget variance and a sales volume variance. a What was the total flexiblebudget variance for the period? b Was this variance favorable or unfavorable? c What was the sales volume variance for the period? d Was this variance favorable or unfavorable? If a variance has no amount, select "None" in the corresponding dropdown cell.
