Please solve it Requireda. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income inthe statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (l.e., zerovariance).)VERNON COMPANYInternal Income StatementBudgetActualVarianceEffectSalesVariable expensesFixed expenses Vernon Company has provided the following for the year.BudgetSalesVariable product costsVariable selling expenseOther variable expensesFixed product costsFixed selling expenseOther fixed expensesInterest expenseVariancesSalesVariable product costsVariable selling expenseOther variable expensesFixed product costsFixed selling expenseOther fixed expensesInterest expense$502,000185,00048,0002,90016,10023,6001,6007807,900 U4,900 F1,600 U1,300 U320 F420 F120 U150 F

The question is based on the concept of Cost Accounting.

a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (Le., zero variance).) VERNON COMPANY Internal Income Statement Budget Actual Variance Effect Sales Variable expenses

a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (Le., zero variance).) VERNON COMPANY Internal Income Statement Budget Actual Variance Effect Sales Variable expenses

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 1CE: Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and...

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Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller prepared the following budgeted income statement for the coming year: Required: 1. What is Arbergs variable cost ratio? What is its contribution margin ratio? 2. Suppose Arbergs actual revenues are 30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arbergs expected margin of safety? 5. What is Arbergs margin of safety if sales revenue is 380,000?
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