MANAGERIAL ACCT W/ACCESS
17th Edition
ISBN: 9781264274017
Author: Garrison
Publisher: MCG
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Chapter 9, Problem 15E
To determine
Concept Introduction:
Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.
The revenue and spending variances of the company for the month of June.
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Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3]
Via Gelato is a popular neighborhood gelato shop. The company has provided the
following cost formulas and actual results for the month of June:
Revenue
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Revenue
Expenses:
While gelato is sold by the cone or cup, the shop measures its activity in terms of the total
number of liters of gelato sold. For example, wages should be $7,400 plus $3.20 per liter
of gelato sold and the actual wages for June were $28,400. Via Gelato expected to sell
6,400 liters in June, but actually sold 6,600 liters.
Raw materials
Fixed Element
per Month
Required:
Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of
each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for
no effect (i.e., zero variance). Input all amounts as positive values.)
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30…
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akeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLocator=&inprogress=false
Sales and Production Budgets
Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June.
U500
S1000
Estimated inventory (units), June 1
262
71
Desired inventory (units), June 30
301
62
Expected sales volume (units):
Northeast Region
2,950
3,300
Southwest Region
5,650
4,900
Unit sales price
$135
$215
a. Prepare a sales budget. Enter all amounts as positive numbers.
ULTIMATE AUDIO COMPANY
Sales Budget
For the Month Ending June 30
Product and Area
Unit Sales Volume
Unit Sales Price
Total Sales
Model U500:
Northeast Region
Southwest Region
Total
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Revenue variancesKessla Taub manages the marketing department at Electronic Village. Company management has been concerned about the sales of three products and has informed Taub that, regardless of other sales, her performance for the year will be evaluated on whether she has met the sales budget for the following items:
Sales Price per Unit
Budgeted Unit Sales
Wireless backup camera
$120
2,560
Heated seat cushion
68
3,360
Wireless car phone charger
60
1,680
Actual sales for these three products, generated for the year, were as follows:
Sales Price per Unit
Sales Revenue
Wireless backup camera
$115
$312,800
Heated seat cushion
70
226,240
Wireless car phone charger
55
365,200
a. Compute the sales price variances by product.Note: Do not use negative signs with your answers.
Sales price variance
Wireless backup camera:
Answer
Answer
Heated seat cusion:
Answer
Answer
Wireless car phone charger:
Answer
Answer
Total
Answer
Answer
b.…
Chapter 9 Solutions
MANAGERIAL ACCT W/ACCESS
Ch. 9 - Prob. 1QCh. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3QCh. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - Prob. 10Q
Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 2F15Ch. 9 - Prob. 3F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 -
L09-1, LO9-2, LO9-3
Adger Corporation is a...Ch. 9 - Prob. 8F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 10F15Ch. 9 - Prob. 11F15Ch. 9 - Prob. 12F15Ch. 9 - Prob. 13F15Ch. 9 - Prob. 14F15Ch. 9 - Prob. 15F15Ch. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 -
EXERCISE 9-3 Revenue and Spending Variances...Ch. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24CCh. 9 - Prob. 25CCh. 9 - Prob. 26C
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