In September, Numbers Incorporated sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 was fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $79,000U; and, sales volume variance, in terms of contribution margin, $35,000U. The sales volume variance, in terms of operating income, for September was:
In September, Numbers Incorporated sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 was fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $79,000U; and, sales volume variance, in terms of contribution margin, $35,000U. The sales volume variance, in terms of operating income, for September was:
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 26Q: At the end of the current fiscal year, the trial balance of Big Apple Inc. revealed the following...
Related questions
Question
In September, Numbers Incorporated sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 was fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-
The sales volume variance, in terms of operating income, for September was:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning