budget variance analysis (5 column analysis)use the contribution margin format( Revenue Less VarableCosts= contribution...budget...

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Accounting

budget variance analysis (5 column analysis)
use the contribution margin format( Revenue Less VarableCosts= contribution margin less fixed costs = OperatingIncome
Please show work

data for the month of April:

Actual results:
Revenue 9,600 pairs of glasses at 29 a pair
Variable costs 24 a pair
Fixed costs 18,200

Master budget:
Revenue sales 9,000 pairs at 30 a pair glasses
Variable costs 23 a pair
Fixed costs 18,000

please show work!

Required:
1) what is the total sales activity in April?

2) what is the flexible budget variance for April column2?

Answer & Explanation Solved by verified expert

3.9 Ratings (663 Votes)

1)	Total sales activity in April	=	$ 2,78,400

2)	Flexible Budget Variance	=	$ 19,400	Unfavorable

Workings:
		Budget amount per unit	Actual Results
	Number of pairs of glasses		9,600

	Sales Revenue	$ 29	$ 2,78,400
Less:	Variable Expenses	$ 24	$ 2,30,400
	Contribution margin		$ 48,000
Less:	Fixed Expenses		$ 18,200
	Operating Income		$ 29,800

		Budget amount per unit	Flexible Budget
	Number of pairs of glasses		9,600

	Sales Revenue	$ 30	288000
Less:	Variable Expenses	$ 23	220800
	Contribution margin		$ 67,200
Less:	Fixed Expenses		$ 18,000
	Operating Income		$ 49,200

		Actual Results	Flexible Budget Variance		Flexible Budget
	Units	9,600			9,600
	Sales Revenue	$ 2,78,400	$ 9,600	U	$2,88,000
Less:	Variable Expenses	$ 2,30,400	$ 9,600	U	$2,20,800
	Contribution margin	$ 48,000	$ 19,200	U	$ 67,200
Less:	Fixed Expenses	$ 18,200	$ 200	U	$ 18,000
	Operating Income	$ 29,800	$ 19,400	U	$ 49,200

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In: Accountingbudget variance analysis (5 column analysis)use the contribution margin format( Revenue Less VarableCosts= contribution...budget variance analysis (5 column analysis)use the contribution margin format( Revenue Less VarableCosts= contribution margin less fixed costs = OperatingIncomePlease show workdata for the month of April:Actual results:Revenue 9,600 pairs of glasses at 29 a pairVariable costs 24 a pairFixed costs 18,200Master budget:Revenue sales 9,000 pairs at 30 a pair glassesVariable costs 23 a pairFixed costs 18,000please show work!Required:1) what is the total sales activity in April?2) what is the flexible budget variance for April column2?