Schooner Corporation used the following data to evaluate its current operating system. The company sells items for $26each and used a budgeted selling price of $26 per unit.     Actual Budgeted Units sold 177,000 units 189,000 units Variable costs $1,089,000 $1,285,000 Fixed costs $809,000 $778,000   What is the​ static-budget variance of​ revenues?       A. $12,000 unfavorable   B. $12,000 favorable   C. $312,000 unfavorable   D. $312,000 favorable

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

A: Solution: Actual operating income = sales - variable cost - fixed costs = 47000*10 - 167000 - 45000…

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: 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: Gibson Company has provided the following for the year.     Budget       Sales $ 510,000   Variable…

A: The variance is favorable when budgeted costs are more than the actual costs incurred. The variance…

Q: James Manufacturing has the following information available for July:     Actual Results…

A: Solution Working note  Flexible budget variable marketing and administrative cost = 37000 -9200 =…

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: 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: The following information relates to a given department of Mervi Company for the first quarter of…

A: Variable cost is the corporate expense that changes in proportion to how much a company produces or…

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: Abernathy Corporation used the following data to evaluate their current operating system. The…

A: Formula: Net operating income = Revenues - Variable costs - Fixed costs

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: Flower ltd. budgeted to sell 200 units and produced the following budget. $ $Sales 71400Variable…

A:

Q: Assume the following information for Jenkins Inc.: Total flexible budget direct materials costs:…

A: Standard rate per item = Total flexible budget direct materials costs / Standard quantity  = 5000/40…

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: Jones Company developed the following static budget at the beginning of the company's accounting…

A: Budget for 8200 units:

Q: operating costs wer

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

Q: Answer the following question(s) using the information below: Wild Brush Company manufactures…

A: Here in this question we are required to calculate market size variance. Market size variance…

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

A: Variance is used by management to identify the gaps between expected results and actual results and…

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: 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: Delaware Corp. prepared a master budget that included $16,200 for direct materials, $32,400 for…

A: Direct material and direct labor conclude the prime cost. The indirect cost incurred in the…

Q: The following static budget is provided: Per unit $70 Total $1,050,000 Sales Less variable costs:…

A: Formula to determine overall volume variance.

Q: Amanda Manufacturing Company prepared the following static budget income statement:…

A: A static budget is a type of budget that anticipates a fixed amount in sales, revenue and expenses.…

Q: The following information relates to a given department of Mervi Company for the first quarter of…

A: Budget is kind of prior estimation which helps management to estimate the sales revenue and…

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

A: Sales variance = Budgeted Sales - Actual Sales

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

A: Actual selling price - $19 per unit Budgeted selling price - $19 per unit Actual units sold - 48,000…

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

A: Solution: Actual operating income = Sales - variable cost - fixed cost = 43000*18 - 166000 - 41000 =…

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: 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: 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: 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…

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.