Ryota Products has an industrial mower division that operates as a profit center. Below is a partially completed responsibility report for the first quarter. Responsibility ReportActualFlexibleBudgetFlexibleBudget VarianceU/FPercentage VarianceU/FSalesRevenue$688,200$700,000 VariableExpenses309,400320,000 ContributionMargin378,800380,000 TraceableFixedExpenses372,000369,000 DivisionMargin$6,800$11,000 Compute the percentage variance for the flexible budget variance for traceable fixed expenses.(Roundyour answer to two decimal places.)

Standard costing represents the variances between the actual performance and the budget which helps…

Answered: Ryota Products has an industrial mower…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 3EB: Identify the type of responsibility center (revenue center, cost center, profit center, or...

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Ryota Products has an industrial mower division that operates as a profit center. Below is a partially completed responsibility report for the first quarter.

Responsibility Report	Actual	Flexible Budget	Flexible Budget Variance	U/F	Percentage Variance	U/F
Sales Revenue	$688,200	$700,000
Variable Expenses	309,400	320,000
Contribution Margin	378,800	380,000
Traceable Fixed Expenses	372,000	369,000
Division Margin	$6,800	$11,000

Compute the percentage variance for the flexible budget variance for traceable fixed expenses.

(Round

your answer to two decimal places.)

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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