Hand-out Chapter 10_Income statement variances

Hand-out Chapter 10_Income statement variances - Chapter...

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Unformatted text preview: Chapter 10: Analysis of Income Statement for a Segment of a Company with Variable Costing Income Statement and Multiple Products with dif ferent Contribution Margins Forecast Budget Flexible Budget Actual Variances Forecast volume and mix at standard selling prices and standard costs Actual volume and mix at standard selling prices and costs Actual volume and mix at actual selling prices and costs Sales volume/Sales mix Price/Expense (Cost) Sales Revenue $150 100% $140 100% $150 100% $10 U $10 F Less Variable Costs (Expense) ($96) 64% ($84) 60% ($99) 68% $12 F $15 U Contribution Margin $54 36% $56 40% $51 34% $2 F $5 U Less Fixed Costs (Expense) ($46) ($46) ($40) $0 $6 F Income Before Tax $8 $10 $11 $2 F $1 F ( )( ( )( ( ) ) ) ( ) ( ) Reconciliation Forecast Budget Income Sales Volume Variance Sales Mix Variance Sales Price Variance Variable Expense Variance Fixed Expense Variance Net Variance Actual Income $8 $3.60 5.60 10.00 15.00 6.00 3.00 Unfavorable Favorable Favorable Unfavorable Favorable Favorable $3 $11 ...
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This note was uploaded on 11/09/2011 for the course ACCT 3337 taught by Professor Staff during the Fall '08 term at University of Houston.

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