Complete the budget vs. actual report below using the data provided Circle Favor
ID: 2555515 • Letter: C
Question
Complete the budget vs. actual report below using the data provided Circle Favorable or ACTUALPLAN Difference Sales Fav. Unfav. Fav. Unfav. Fav. Unfav Fav. Unfav Fav. Unfav. Variable Cost of Goods Sold Variable Selling & Admin Exp. S Contribution Margin Number of Units Sold Per Unit: Total Variable Costs 400 410 S210 70 27 $200 S Sales Price Variable Cost of Goods Sold Variable Selling & Admin Exp. 75 25 Variance Analysis: Calculate the following variances. Show all work: Circle Favorable or Unfavorable Fav. Unfav. Fav. Unfav Fav. Unfay Amount a) Sales - Quantity Variance b) Sales - Price Variance Net Difference c) Cost of Goods Sold - Quantity Variance d) Cost of Goods Sold - Cost (price) Variance Fav. Unfav. Fav. Unfav Fav. Unfav Net Difference e) Variable Selling & Admin - Quantity Variance f) Variable Selling & Admin - Cost (price) Variance Fav. Unfa Fav. Unfav Fav. Unfay Net DifferenceExplanation / Answer
Actual
Plan
Difference
Favorable/Unfavorable
Sales
$ 84,000
$ 82,000
$ 2,000
Favorable
Less:
Variable Cost of Goods Sold
$ 28,000
$ 30,750
$2,750
Favorable
Variable Selling & Admin. Exp
$ 10,800
$ 10,250
$ 550
Unfavorable
Total Variable Costs
$ 38,800
$ 41,000
$ 22,00
Favorable
Contribution Margin
$ 45,200
$ 41,000
$ 42,00
Favorable
a)
Sales - Quantity Variance
= (Actual Sales Units – Budgeted Sales Units) × Standard price per unit
= (400 – 410) x $ 200 = -10 x $ 200 = - $ 2,000 Unfavorable
b)
Sales Price - Variance = (Actual price – Standard price) x Actual quantity sold
= ($ 210 - $ 200) x 400 = $ 10 x 400 = $ 4,000 Favorable
Net Difference = $ 4,000 - $ 2,000 = $ 2,000 Favorable
c)
Cost of Goods Sold - Quantity Variance = (Actual Units – Standard Units) x Standard COGS per unit
= (400 – 410) x $ 75 = - 10 x $ 75 = - $ 750 Favorable
d)
Cost of Goods Sold - Price Variance = (Actual COGS – Standard COGS) x Actual quantity sold
= ($ 70 – $ 75) x 400 = - $ 5 x 400 = - $ 2,000 Favorable
Net Difference = - $ 750 - $ 2,000 = - $ 2,750 Favorable
e)
Variable Selling & Admin - Quantity Variance
= (Actual Units – Standard Units) x Standard Variable Selling & Admin per unit
= (400 – 410) x $ 25 = - 10 x $ 25 = - $ 250 Favorable
f)
Variable Selling & Admin - Price Variance
= (Actual Variable Selling & Admin – Standard Variable Selling & Admin) x Actual quantity sold
= ($ 27 – $ 25) x 400 = $ 2 x 400 = $ 800 Unfavorable
Net Difference = $ 800 - $ 250 = $ 550 Unfavorable
Actual
Plan
Difference
Favorable/Unfavorable
Sales
$ 84,000
$ 82,000
$ 2,000
Favorable
Less:
Variable Cost of Goods Sold
$ 28,000
$ 30,750
$2,750
Favorable
Variable Selling & Admin. Exp
$ 10,800
$ 10,250
$ 550
Unfavorable
Total Variable Costs
$ 38,800
$ 41,000
$ 22,00
Favorable
Contribution Margin
$ 45,200
$ 41,000
$ 42,00
Favorable
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