Home Insert Page Layout Formulas Data Review View A B D Performance Report, Year Ended December 31, 2017 Flexible-Budget Flexible Budget Sales-Volume Static Budget 120,000 3 Actual Results Variances Variances 4 Units sold 5 Revenues (sales) 6 Variable costs 7 Contribution margin 8 Fixed costs 9 Operating income 130,000 $715,000 515,000 200,000 140,000 $ 60,000 $420,000 240,000 180,000 120,000 $ 60,000 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) 2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here? Required

Home Insert Page Layout Formulas Data Review View A B D Performance Report, Year Ended December 31, 2017 Flexible-Budget Flexible Budget Sales-Volume Static Budget 120,000 3 Actual Results Variances Variances 4 Units sold 5 Revenues (sales) 6 Variable costs 7 Contribution margin 8 Fixed costs 9 Operating income 130,000 $715,000 515,000 200,000 140,000 $ 60,000 $420,000 240,000 180,000 120,000 $ 60,000 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) 2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here? Required

Name: Flexible budget, working backward. The Clarkson Company produces engin
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Description: Flexible budget, working backward. The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the company’s variance analysis calculations for the year ended December 31, 2017. The f

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

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