variances 2

variances 2 - SI cfw_ collaborative peer-led structured...

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This material is produced by the SI Program at Arizona State University student success .asu.edu { collaborative peer-led structured group study SI Top managers of Lortan Industries predicted the following year’s sales of 147,000 units of its product at a unit price of $9.20. Actual sales for the year were 144,000 units at $11.60 each. Variable expenses were budgeted at $2.35 per unit, and actual variable expenses were $2.80 per unit. Actual fixed expenses of $430,000 exceeded budgeted fixed expenses by $27,500. Prepare Lortan Industries’ income statement performance report. What variance contributed most to the year’s favorable results? Lortan Industries Income Statement Performance Report Actual results at actual price Flexible Budget Variance Flexible Budget for Actual number of output units Sales Volume Variance Static (master) Budget Output units sales revenue Variable expenses fixed expenses total expenses Operating income
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variances 2 - SI cfw_ collaborative peer-led structured...

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