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In: Accounting

Kite Company has the following report for August: Flexible Sales Actual budget Flexible activity Master Results...

Kite Company has the following report for August:

Flexible

Sales

Actual

budget

Flexible

activity

Master

Results

variances

budget

variances

budget

Units

?

12000

4000 U

?

Sales revenue

?

12000 F

168000

?

?

Variable mfg. costs

96000

?

?

?

120000

Variable mktg. costs

?

4800 U

21600

?

?

Contribution margin

57600

?

?

18800 U

75200

Fill in the missing amounts. For items in the variances columns, indicate F or U.

Solutions

Expert Solution

Flexible Sales
Actual budget Flexible activity Master
Results variances budget variances budget
Units          12,000            12,000 4000 U      16,000
Sales revenue       1,80,000 12000 F        1,68,000 56000 U 2,24,000
Variable mfg. costs          96,000 6000 U            90,000 30000F 1,20,000
Variable mktg. costs          26,400 4800 U            21,600 7200 F      28,800
Contribution margin          57,600 1200F            56,400 18800 U      75,200

Working:  

Flexible Sales
Actual budget Flexible activity Master
Results variances budget variances budget
Units

         12,000

(Same as Flexible budget)

            12,000 4000 U

     16,000

(12000+4000)
Sales revenue

      1,80,000

(168000+12000)

 12000 F        1,68,000

56000 U

(168000-224000)

2,24,000

(168000/12000)*16000
Variable mfg. costs          96,000

6000 U

(90000-96000)

           90,000

(120000/16000)*12000

30000F

(120000-90000)

 1,20,000
Variable mktg. costs

         26,400

(21600+4800)

 4800 U            21,600

7200 F

(28800-21600)

     28,800

(21600/12000)*16000
Contribution margin          57,600

1200F

(57600-56400)

           56,400

(75200-18800)

 18800 U      75,200

Please give positive rating.  

ekkarill92 answered 1 year ago
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