The Beekman Company produces engine parts for car manufacturers. A new accountan

Question

The Beekman Company produces engine parts for car manufacturers. A new accountant intem at Beekman has accidentally deleted the calculations on the company's variance analysis calculations tfor the year ended December 31, 2017. The tollowing table is what remains of the data. (Cck the icon to view the data.) Read the requirements Requirement 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) Begin with the fiexible budget columns, then the sales volume vanance column. Label each variance as tavorable (F) or unfavorable (U) (For variances with a so balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label. Round your answers to the nearest whole dollar.) Flexible-Budget Variance Flexible Budget Actual Results 104,000 676,000 445,000 231,000 167,150 63,350 104000 Units sold Revenues (sales) Variable costs Contribution margin Fixed costs Operating income S

Explanation / Answer

Table :

Actual results Flexible budget variances Flexible budget Sales volume variance Static budget Units sold 104000 104000 97000 Revenue (Sales) 676000 234000 F 442000 29750 F 412250 Variable cost 445000 216200 U 228800 15400 U 213400 Contribution margin 231000 17800 F 213200 14350 F 198850 Fixed cost 167150 32150 U 135000 0 None 135000 Operating income 63850 14350 U 78200 14350 F 63850

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