Top managers of Root Industries predicted 2024 sales of 14,600 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit Root Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 1 3 Actual Results 2 (1)-(3) Flexible Budget Variance Flexible Budget 4 (3)-(5) Sales Volume Variance 5 Static Budget

Cornerstones of Cost Management (Cornerstones Series)
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Top managers of Root Industries predicted 2024 sales of 14,600 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000
exceeded budgeted fixed costs by $2,000.
Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?
Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any
$0 variances, leave the Favorable (F)/Unfavorable (U) input blank.)
Units
Sales Revenue
Variable Costs
Contribution Margin
Budget
Amounts
Per Unit
Root Industries
Flexible Budget Performance Report
For the Year Ended December 31, 2024
1
3
Actual
Results
2
(1)-(3)
Flexible
Budget
Variance
Flexible
Budget
4
(3) - (5)
Sales
Volume
Variance
☐☐
5
Static
Budget
Transcribed Image Text:Top managers of Root Industries predicted 2024 sales of 14,600 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit Root Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 1 3 Actual Results 2 (1)-(3) Flexible Budget Variance Flexible Budget 4 (3) - (5) Sales Volume Variance ☐☐ 5 Static Budget
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