The master budget at Western Company last period called forsales of 225,100 units at...

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Accounting

The master budget at Western Company last period called forsales of 225,100 units at $9.10 each. The costs were estimated tobe $3.76 variable per unit and $225,100 fixed. During the period,actual production and actual sales were 230,100 units. The sellingprice was $9.20 per unit. Variable costs were $4.60 per unit.Actual fixed costs were $225,100.
Required:
Prepare a profit variance analysis. (Indicate the effectof each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select eitheroption.)

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Western Company
Profit variance Analysis
	Actual	Manufacturing Variances		Sales Price Variance		Flexible Budget	Sales Activity Variance		Master Budget
Selling units (q)	2,30,100					2,30,100			2,25,100
Selling price per unit (i)	$ 9.20					$ 9.10			$ 9.10
Variable cost per unit (ii)	$ 4.60					$ 3.76			$ 3.76

Sales Revenue (q x (i))	$ 21,16,920			$ 23,010	F	$20,93,910	$ 45,500	F	$ 20,48,410
Less Variable Expenses (q X (ii))	$ 10,58,460	$ 1,93,284	U			$ 8,65,176	$ 18,800	U	$ 8,46,376
Contribution margin	$ 10,58,460	$ 1,93,284	U	$ 23,010	F	$12,28,734	$ 26,700	F	$ 12,02,034
Less Fixed Expenses:	$ 2,25,100	$ -	None			$ 2,25,100	$ -	None	$ 2,25,100
Operating Profits	$ 8,33,360	$ 1,93,284	U	$ 23,010	F	$10,03,634	$ 26,700	F	$ 9,76,934

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In: AccountingThe master budget at Western Company last period called forsales of 225,100 units at $9.10...The master budget at Western Company last period called forsales of 225,100 units at $9.10 each. The costs were estimated tobe $3.76 variable per unit and $225,100 fixed. During the period,actual production and actual sales were 230,100 units. The sellingprice was $9.20 per unit. Variable costs were $4.60 per unit.Actual fixed costs were $225,100.Required:Prepare a profit variance analysis. (Indicate the effectof each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select eitheroption.)