Bank Assistant Printers, Inc. produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2020 included these data: LOADING... (Click the icon to view the operating budget and actual results.) The company's executive vice president observed that the September operating income was much lower than anticipated despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to explain the disappointing September results. Bank Assistant develops its flexible budget based on budgeted per-output-unit revenue and per-output-unit variable costs without a detailed analysis of budgeted inputs. The budgeted amounts for September 2020 were: Number of checkbooks 20,000 Selling price per book $25 Variable cost per book $6 Fixed costs for the month $125,000 The actual results for September 2020 were as follows: Number of checkbooks produced and sold 16,900 Average selling price per book $27 Variable cost per book $5 Fixed costs for the month $131,000
Bank Assistant Printers, Inc. produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2020 included these data: LOADING... (Click the icon to view the operating budget and actual results.) The company's executive vice president observed that the September operating income was much lower than anticipated despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to explain the disappointing September results. Bank Assistant develops its flexible budget based on budgeted per-output-unit revenue and per-output-unit variable costs without a detailed analysis of budgeted inputs. The budgeted amounts for September 2020 were: Number of checkbooks 20,000 Selling price per book $25 Variable cost per book $6 Fixed costs for the month $125,000 The actual results for September 2020 were as follows: Number of checkbooks produced and sold 16,900 Average selling price per book $27 Variable cost per book $5 Fixed costs for the month $131,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Bank Assistant
Printers, Inc. produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September
2020
included these data:LOADING...
(ClickThe company's executive vice president observed that the September operating income was much lower than anticipated despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant , you have been asked to explain the disappointing September results.
Bank Assistant
develops its flexible budget based on budgeted per-output-unit revenue and per-output-unit variable costs without a detailed analysis of budgeted inputs.The budgeted amounts for September
2020
were:|
Number of checkbooks
|
20,000
|
|---|---|
|
Selling price per book
|
$25
|
|
Variable cost per book
|
$6
|
|
Fixed costs for the month
|
$125,000
|
The actual results for September
2020
were as follows:|
Number of checkbooks produced and sold
|
16,900
|
|---|---|
|
Average selling price per book
|
$27
|
|
Variable cost per book
|
$5
|
|
Fixed costs for the month
|
$131,000
|
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