Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed: Product X Product Y Total Sales $ 281,000 $ 378,000 $ 659,000 Variable Costs 168,600 245,700 414,300 Contribution Margin $ 112,400 $ 132,300 $ 244,700 Fixed costs 124,000 102,000 226,000 Operating Income (Loss) $ (11,600 ) $ 30,300 $ 18,700 Selling Price per unit $ 100 $ 50 The following actual operating results were reported after the year was over: Product X Product Y Total Sales $ 367,600 $ 547,600 $ 915,200 Variable Costs 238,900 225,500 464,400 Contribution Margin $ 128,700 $ 322,100 $ 450,800 Fixed costs 140,000 117,500 257,500 Operating Income (Loss) $ (11,300 ) $ 204,600 $ 193,300 Units Sold 3,190 12,300 The contribution margin sales volume variance for Product Y is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $8,295 favorable. $82,950 favorable. $29,000 favorable. $47,000 unfavorable. $57,000 unfavorable.
Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed: Product X Product Y Total Sales $ 281,000 $ 378,000 $ 659,000 Variable Costs 168,600 245,700 414,300 Contribution Margin $ 112,400 $ 132,300 $ 244,700 Fixed costs 124,000 102,000 226,000 Operating Income (Loss) $ (11,600 ) $ 30,300 $ 18,700 Selling Price per unit $ 100 $ 50 The following actual operating results were reported after the year was over: Product X Product Y Total Sales $ 367,600 $ 547,600 $ 915,200 Variable Costs 238,900 225,500 464,400 Contribution Margin $ 128,700 $ 322,100 $ 450,800 Fixed costs 140,000 117,500 257,500 Operating Income (Loss) $ (11,300 ) $ 204,600 $ 193,300 Units Sold 3,190 12,300 The contribution margin sales volume variance for Product Y is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $8,295 favorable. $82,950 favorable. $29,000 favorable. $47,000 unfavorable. $57,000 unfavorable.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Nappon Co. has two products named X and Y. The firm had the following
| Product X | Product Y | Total | ||||||||||
| Sales | $ | 281,000 | $ | 378,000 | $ | 659,000 | ||||||
| Variable Costs | 168,600 | 245,700 | 414,300 | |||||||||
| Contribution Margin | $ | 112,400 | $ | 132,300 | $ | 244,700 | ||||||
| Fixed costs | 124,000 | 102,000 | 226,000 | |||||||||
| Operating Income (Loss) | $ | (11,600 | ) | $ | 30,300 | $ | 18,700 | |||||
| Selling Price per unit | $ | 100 | $ | 50 | ||||||||
The following actual operating results were reported after the year was over:
| Product X | Product Y | Total | ||||||||||
| Sales | $ | 367,600 | $ | 547,600 | $ | 915,200 | ||||||
| Variable Costs | 238,900 | 225,500 | 464,400 | |||||||||
| Contribution Margin | $ | 128,700 | $ | 322,100 | $ | 450,800 | ||||||
| Fixed costs | 140,000 | 117,500 | 257,500 | |||||||||
| Operating Income (Loss) | $ | (11,300 | ) | $ | 204,600 | $ | 193,300 | |||||
| Units Sold | 3,190 | 12,300 | ||||||||||
The contribution margin sales volume variance for Product Y is: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
-
$8,295 favorable.
-
$82,950 favorable.
-
$29,000 favorable.
-
$47,000 unfavorable.
-
$57,000 unfavorable.
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