Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $81 per unit and variable costs of $35 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Flexible Budget Performance Report Flexible Budget For Month Ended June 30 (11,600 units) Sales Variable costs Contribution margin Fixed costs Income Actual Results (11,600 units) Variances Favorable or Unfavorable $ 25,400 Favorable 359,000 533,600 278,000 293,000

Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $81 per unit and variable costs of $35 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Flexible Budget Performance Report Flexible Budget For Month Ended June 30 (11,600 units) Sales Variable costs Contribution margin Fixed costs Income Actual Results (11,600 units) Variances Favorable or Unfavorable $ 25,400 Favorable 359,000 533,600 278,000 293,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...

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Cortez Manufacturing, Inc. has the following flexible budget formulas and amounts: Actual results for May for the production and sale of 5,000 units were as follows: Prepare a performance report for May that includes the identification of the favorable and unfavorable variances.
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