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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?

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