Miller.M.Acc350.T#4

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
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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