actual sales : 8500 unit variable cost actual $ 188.800 fixed cost actual $ 71.200 sales...

actual sales : 8500 unit
variable cost actual $ 188.800
fixed cost actual $ 71.200
sales price $ 31,00
sales budget : 9000 unit.
Variable cost standar perunit $ 21,8
Fixed cost budget $ 70.000

Questions

1. Static budget variances.
2. Sales activity variances.
3. Using a flexible budget at the actual activity level, calculate the contribution margin budget, the profit budget, and the flexible budget variant.

Expert Solution

1.

	Actual	Static Budget	Variance
Sales Quantity	8,500.00	9,500.00
Sales Revenue	263,500.00	294,500.00	31,000.00	Unfavorable
Variable Cost	188,800.00	207,100.00	18,300.00	Favorable
Contribution Margin	74,700.00	87,400.00	12,700.00	Unfavorable
Fixed Cost	71,200.00	70,000.00	1,200.00	Unfavorable
Net Profit	3,500.00	17,400.00	13,900.00	Unfavorable

2.

	Flexible Budget	Static Budget	Variance
Sales Quantity	8,500.00	9,500.00
Sales Revenue	263,500.00	294,500.00	31,000.00	Unfavorable
Variable Cost	185,300.00	207,100.00	21,800.00	Favorable
Contribution Margin	78,200.00	87,400.00	9,200.00	Unfavorable
Fixed Cost	70,000.00	70,000.00	-
Net Profit	8,200.00	17,400.00	9,200.00	Unfavorable

3.

	Flexible Budget	Actual	Variance
Sales Quantity	8,500.00	8,500.00
Sales Revenue	263,500.00	263,500.00	-
Variable Cost	185,300.00	188,800.00	3,500.00	Unfavorable
Contribution Margin	78,200.00	74,700.00	- 3,500.00	Unfavorable
Fixed Cost	70,000.00	71,200.00	- 1,200.00	Unfavorable
Net Profit	8,200.00	3,500.00	- 4,700.00	Unfavorable

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