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Homework answers / question archive / Aurora's most recent data is provided in the report below, however some amounts are missing
Aurora's most recent data is provided in the report below, however some amounts are missing. The actual sales price per unit was $17 compared to the budget price of $15 per unit. Actual variable costs per unit produced were $11. Use the following information to provide missing amounts that are indicated alphabetically. For each letter in a square below, provide the missing amount on the corresponding blank line: Analysis Report Actual Results 1 Flexible Budget Variance Flexible Budget Sales-Volume Variances Static Budget 21,000 A) B) C) 25,000 Units Sold D) $42,000 Fav E) F) G) Revenues H $21,000 Un 1) $40,000 Fav J) Variable Costs K) $5,000 Fav L) M) $75,000 Fixed Costs N) 0) P) Q) R) Operating Income Letters D, G, H, N, R and S are work one-half point each. All remaining letters (missing amounts) are worth 1 point each for a combined total of 16 points. Include Fav/Unfav descriptions where appropriate.
A) Flexible budget variance = 21,000-21,000 = 0.
B) Flexible budget unit sold = Actual unit sold = 21,000.
C) Sales-volume variance for units sold = Actual unit sold - Static budget unit sold.
Sales-volume variance for units sold = 4,000 unfavorable.
D) Actual revenue = Actual unit sold*Actual selling price.
Actual revenue = 21,000*$17 = $357,000
E) Flexible budget revenue = Actual unit sold*Budgeted selling price.
Flexible budget revenue = 21,000*$15 = $315,000
F) Sales-volume variance = (Actual unit sold-Static budget unit sold)*Budgeted selling price.
Sales-volume variance = (21,000-25,000)*$15 = $60,000 Unfavorable.
G) Static budget revenue = Static budget unit sold*Budgeted selling price.
Static budget revenue = 25,000*15 = $375,000.
H) Actual variable cost = Actual unit sold*Actual variable cost per unit.
Actual variable cost = 21,000*$11 = $231,000
I) Flexible Budget variable cost = 231,000-$21,000 unfavorabel = $210,000.
J) Static budget variable cost = 25,000*$10 = $250,000.
- Budgeted variable cost per unit = Flexible budgeted variable cost/Actual unit sold.
-Budgeted variable cost per unit = $210,000/21,000 = $10.
K) Actual fixed cost = $75,000-$5,000 favorable = $70,000.
L) Flexible budget fixed cost = Static budget fixed cost.
Flexible budget fixed cost = $75,000.
M) Sales-volume variance for fixed cost = Flexible budget fixed cost-static budget fixed cost.
Sales-volume variance for fixed cost = $75,000-$75,000 = 0.
N) Actual operating income = $357,000-$231,000-$70,000 = $56,000.
O) Flexible budget variance for operating income = $56,000-$30,000 = $26,000 favorable.
P) Flexible budget operating income = $315,000-$210,000-$75,000 = $30,000.
Q) Sale-volume variance for operating income = $30,000-50,000 = $20,000 unfavorable.
R) Static budget operating income = $375,000-$250,000-$75,000 = $50,000.
