Case-10-1 - Written by Yao Yang, 1453634 Case 10-1 Variance...

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Written by Yao Yang, 1453634 Case 10-1 Variance Analysis Problems I do not why my variance of the actual profit and budgeted profit (see the summary performance report) are not equal to the sum of the revenue variance, variable-cost variances and fixed-cost variances. So my analysis can only be based on the not exact number. I am sorry for that. Analysis: Total variance: Total variance is (21), which is the variance of the actual profit and budgeted profit. It illustrates that the whole actual profit can not meet the budget, which is unfavorable. Revenue variance: Net revenue variances is 42, which shows that the company above the budget for sales, which is favorable. Price variance is (49), which means that the selling price falls behind the budget. It is unfavorable. However, mix and volume variance are 14.33 and 76.67 respectively, which shows they meet the budget and are favorable for the company. Variable-cost variances: Labor and variable are (3) and (5) respectively, meaning they are not favorable. However, the material has a positive number of 98, which means that the actual expense does not over the budget expense and hence favorable. Net variable-cost
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This note was uploaded on 06/08/2011 for the course ECONOMICS 2008013000 taught by Professor Mercy during the Spring '10 term at Universitas Katolik Indonesia Atma Jaya.

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Case-10-1 - Written by Yao Yang, 1453634 Case 10-1 Variance...

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