Miller.M.Acc350.T#4 - Cole Pro Company Flexible budget...

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Cole Pro Company Flexible budget performance report For the year ended July 31, 2016 Actual Results Units 39,000 (a) 39,000 8,000 31,000 Sales Revenue $214,000 (b) $214,000 $19,000 $195,000 Variable Expenses $86,000 ( c) 80,000 $8,000 $78,000 Contribution Margin 128,000 (d) 134,000 $11,000 $117,000 Fixed Expenses 108,000 (e) 103,000 0 108,000 Operating Income $20,000 (f) $31,000 $11,000 $9,000 Static budget= actual results- sales volum Flexible budget variance Flexible Budget Sales Volume Variance Static Budget Points (a) to (f) are calculated under: 1. 39,000-39,000= no effect 2. $214,000- $214,000= no effect 3. $86,000-$80,000 = $6,000 Unfavorable 4. $128,000- $134,000= $6,000 Unfavorable 5. $108,000 - $103,000= $5,000 Unfavorable 6. $20,000- $31,000 = $11,000 Unfavorable
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me variance
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Calculation of Variances Material Price Variance = (Actual Price - Standard Price) X = $1.05 - $1.10 X Material Quantity Variance = (Actual Quantity - Standard Quantity) X = 146,000 - 140,000 X 20,000 Fender * 7 sq f Material Cost Variance Labor Rate Variance = (Actual rate - Standard rate) X = $15.00 - $14.00 X Labor efficiency variance = (Actual hours - Standard hours) X = 410 - 520 X 20,000 fender * 0.026 hours Labor Cost variance Both the material and labor variances are favorable hence we can say that Great Fend
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Actual Quantity 146,000 = -7300 Favorable Standard Price $1.10 = $6,600.00 Unfavorable
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