topic 9 sol - 7-34(60 min.)Comprehensive variance analysis,...

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Unformatted text preview: 7-34(60 min.)Comprehensive variance analysis, responsibility issues.1a.Actual selling price = $82.00Budgeted selling price = $80.00Actual sales volume = 4,850 unitsSelling price variance = (Actual sales price -Budgeted sales price) × Actual sales volume= ($82 -$80) × 4,850 = $9,700 Favorable1b.Development of Flexible BudgetBudgeted UnitAmountsActual VolumeFlexible BudgetAmountRevenues$80.004,850$388,000Variable costsDM-Frames$2.20/oz. × 3.00 oz.6.60a4,85032,010DM-Lenses$3.10/oz. × 6.00 oz.18.60b4,85090,210Direct manuf. labor$15.00/hr. × 1.20 hrs.18.00c4,85087,300Total variable manufacturing costs$209,520Fixed manufacturing costs75,000Total manufacturing costs284,520Gross margin$103,480a$33,000 ÷ 5,000 units;b$93,000 ÷ 5,000 units;c$90,000 ÷ 5,000 unitsActualResults(1)Flexible-BudgetVariances(2)=(1)-(3)FlexibleBudget(3)Sales -VolumeVariance(4)=(3)-(5)StaticBudget(5)Units sold4,8504,8505,000Revenues$397,700$ 9,700F$388,000$ 12,000U$400,000Variable costsDM-frames37,2485,238 U32,010990 F33,000DM-lens100,49210,282 U90,210...
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This note was uploaded on 07/07/2009 for the course ACCT 2102 taught by Professor Unknown during the Three '08 term at Queensland.

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topic 9 sol - 7-34(60 min.)Comprehensive variance analysis,...

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