ncoln Corporation used the following data to evaluate their current operating system. The company sells items for $10each and used a budgeted selling price of $10 per unit.     Actual Budgeted Units sold 47,000 units 37,000 units Variable costs $167,000 $151,000 Fixed costs $45,000 $54,000   What is the​ static-budget variance of operating​ income?

Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…

A: The static budget variance of variable  Cost = Actual  variable Cost  - Budgeted  variable Cost

Q: Before the year began, the following static budget was developed for the estimated sales of 100,000.…

A: A flexible budget is basically considered as those budget which adjusts them self to the interest or…

Q: The budgeted prices for materials and direct labor per unit of finished product are $8 and $7,…

A: Particulars Static Budget Actual Cost Variance Direct Materials 59200 49900 9300(F) Direct Labor…

Q: Top managers of Kyler Industries predicted 2018 sales of 14,400 units of its product at a unit price…

A: Under flexible budget, the revenue per unit and the variable cot per unit are multiplied by actual…

Q: A company's budgeted price of its product is $50 per unit. The company's planned level of activity…

A: Solution: revenue as per flexible budget for actual units = 2200*$50 = $110,000

Q: Global​ Engineering's actual operating income for the current year is $57,000. The flexible budget…

A: Sales volume variance for operating income = Flexible Budget Operating Income for actual sales -…

Q: Marathon Sports Equipment Company projected sales of 79,000 units at a unit sales price of $12 for…

A: Sales volume  variance  = (actual  units - budgeted units ) × Budgeted  selling price

Q: Actual Results Static Budget Units 990 700 Sales Revenue $75,240 $37,800 Variable Costs 35,640…

A: Solution:  static budget variance for operating​ income = Actual opetrating income - static budget…

Q: Reflector Glass Company prepared the following static budget for the year: Static Budget…

A: Solution: Budgeted contribution margin per unit = $7 - $1.50 = $5.50 per unit

Q: Example: The budgeted sales of SM Ltd were 740 units at a selling price of $21. The actual sales…

A: Variance analysis: It is the technique in budgeting that allows for analysis of the variances…

Q: raham Corporation used the following data to evaluate its current operating system. The company…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: alculate the sales volume variance.

A: The difference that arises between the flexible budget and actual results is termed flexible budget…

Q: Top managers of Juda Industries predicted 2018 sales of 14,700 units of its product at a unit price…

A: The budget preparation based on the actual output is defined as the flexible budget. The budget…

Q: The following information was drawn from the accounting records of Smith Company     Static Budget…

A: Sales price flexible budget variance = Actual sales - Flexible Budget sales

Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…

A: Working note:   ActualResults StaticBudget Static-budgetvariance  Units sold  42000…

Q: The total sales mix variance for both products is

A:

Q: Formidable Company collected the following information: Standard costs per unit:   Variable…

A: The question is based on the concept of budget and the standard costing method of budget.  A budget…

Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…

A: Static budget is that budget which is fixed in nature and will not be change. But if level of…

Q: Edwards Corporation used the following data to evaluate their current operating system. The company…

A: In calculation of Static Budget variance of Revenues, the Budgeted revenues are compared with Actual…

Q: Texas Company has prepared the flexible budget formula for production costs: costs= 340,000 + 9X,…

A: Budgets are the forecasts or estimates that are made for future period of time. Budget variance…

Q: Daniels Corporation used the following data to evaluate their current operating system. The company…

A: Flexible budget vs static budget: Flexible budget is a budget which states the cost and sales…

Q: Graham Corporation used the following data to evaluate its current operating system. The company…

A: Some formulas and supporting calculations:Formula* Total Sales = Unit sold x Selling PriceActual…

Q: Edwards Corporation used the following data to evaluate their current operating system. The company…

A: Description: Static budget variance of variable costs: Deduction of Budgeted Variable costs from…

Q: Hollaway Corp. has the following data for the current fiscal year:     Actual   Budget   Sales…

A: Solution:- Calculation of the total sales mix variance for both products as follows:- For Product…

Q: Schooner Corporation used the following data to evaluate its current operating system. The company…

A: The static budget variance of revenue is calculated as planned sales revenue less actual sales…

Q: Sanford Company original assumptions for the planning budget were: Total sales = $160,000, sale…

A: Given: Budgeted Quantity (BQ)=$160000$20=8000 unitsBudgeted Price (BP)=$20Actual Quantity (AQ)=8200…

Q: Coroid Corporation used the following data to evaluate their current operating system. The company…

A: Formula used: Static budget variance = Actual variable cost - Budgeted variable cost

Q: operating costs wer

A: Given as, Revenue $25 Operating costs $4.75 $3,150

Q: Beech Company produced and sold 113,000 units in May. For the level of production in May, budgeted…

A: A flexible budget is a budget at the actual activity (113,000 units) which is already given.…

Q: Abu Dhabi Company's budgeted prices for direct materials, direct manufacturing labor, and direct…

A: Flexible budgets are forecasts or estimates that changes with change in level of activity or…

Q: Before the year began, the following static budget was developed for the estimated sales of 100,000.…

A: sales per unit = sales / number of units sold = $3570000 / 100000 = $37.5   Flexible budget at 80000…

Q: hooner Corporation used the following data to evaluate its current operating system. The company…

A: Solution: Actual revenues = Actual units * actual selling price = 171000 *23 = 3,933,000 Budgeted…

Q: The budgeted and actual data for direct materials and labor are as follows: Budgeted Actual DM price…

A: Material quantity variance is the difference between actual material used in production and expected…

Q: Rich & Sweet Candy Company budgeted to produce and sell 5,000 units with its static master budget…

A: Working Note: Actual units sold = Budgeted units x 1.20 = 5,000 units x 1.20 = 6,000 units

Q: Coroid Corporation used the following data to evaluate their current operating system. The company…

A: Formula: Static budget variance of variable cots = Actual Variable costs - Budgeted Variable costs

Q: The following are selected budgeted data for Green Company for the coming year: Budgeted sales…

A: Margin of safety: Margin of safety is the point  after which profit will be happen in multiple of…

Q: The following information was drawn from the accounting records of Ashton Company.     Budgeted…

A: Sales variance = Budgeted Sales - Actual Sales

Q: The cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected…

A: Flexible budget is a budget which is prepared for various level of activity based on static budget.…

Q: The following sales were budgeted for the year:   Product A Product B Product C Demand (units)…

A: Particulars                                       Product A           Product B           Product…

Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…

A: static-budget variance of revenue  = Actual revenue - Budget revenue

Q: James Manufacturing had the following information available for July: Flexible Sales Actual Budget…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…

A: Static budget is the original budget, which is not revised according to the actual units.

Q: Standard per item (£) Actual per item (£) Selling price 20 22 Material 6 8 Labour 3 4…

A: Variance in sales price refers to the difference between a company's expected pricing and its actual…

Q: Coroid Corporation used the following data to evaluate their current operating system. The company…

A: Static budget is a fixed budget which is not change with the level of production. It remains same as…

Q: A company’s static budget estimate of total shipping cost was $100,000 based on theassumption that…

A: Variable cost is the cost which changes with the change in the output level. It is the cost which…

Q: WXY Corporation manufactures lambs. Here below static budget and actual results are presented;…

A: Flexible Budget changes with the change in the volume of activity say, for example, change in the…

Q: WXY Corporation manufactures lambs. Here below static budget and actual results are presented;…

A: Meaning of Income Statement performance report:- Income Statement Performance Report  helps a…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.