Actual sales revenue in dollars is 4.65% higher than budgeted, actual sales price is 9% lower than budgeted, actual sales volume in units is 15% higher than budgeted, actual input prices are 5% lower than budgeted, and actual input quantities per unit are 5% lower than budgeted. Characterize input price and input efficiency variances as favorable (F) or unfavorable (U): O input price variance = U; input efficiency variance = F O input price variance = F; input efficiency variance = U input price variance = U; input efficiency variance = U O input price variance = F; input efficiency variance = F not enough information

Actual sales revenue in dollars is 4.65% higher than budgeted, actual sales price is 9% lower than budgeted, actual sales volume in units is 15% higher than budgeted, actual input prices are 5% lower than budgeted, and actual input quantities per unit are 5% lower than budgeted. Characterize input price and input efficiency variances as favorable (F) or unfavorable (U): O input price variance = U; input efficiency variance = F O input price variance = F; input efficiency variance = U input price variance = U; input efficiency variance = U O input price variance = F; input efficiency variance = F not enough information

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 20MCQ: A firm comparing the actual variable costs of producing 10,000 units with the total variable costs...

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