chap.7. Cost - Reshika Ghale 7-29 1 Actual budget Flexible...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Reshika Ghale 7-29 1. Actual budget Flexible budget Sales volume variances Static budget Units sold 230,550 230,550 10,550 F 220,000 Sales revenue $3,412,140 $3,458,250* 158,250 F $3,300,000 Variable cost $2,320,255 $2,213,280* $101,280 U $2,112,000 Contribution margin $1,091,885 $1,244,970 $56,970 F $1,188,000 *Budgeted selling price per unit= $3,300,000/220,000= $15 per headband Flexible budget revenues- $15*230,550= $3,458,250 *Budgeted variable cost per unit= $2,112,000/220,000=$9.60 Flexible budget Variable cost= $9.60*230,550= $2,213,280 2. Actual market size* Actual market share* Budgeted Contribution margin per unit (1) Market Share Variance (1) - (2) Actual market size*Budgeted market share*Budgeted contribution margin per unit (2) Market Size Variance (2) - (3) Static budget: Budgeted Market size* Budgeted Market share*Budgeted contribution margin per unit (3) 4,350,000*5.3%*$5. 40 $1,244,970 4,350,000*5%*$5.4 0 $1,174,500 4,400,000*5%*$5.40 $1,188,000 $70,470 F $13,500 F $56,970 F (Sales-volume Variance) Budgeted Market Share= Budgeted units/ Market size= 220,000/4,400,000= 5% Actual Market Share= Actual Units/ Market size= 230,550/4,350,000= 5.3%
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/12/2011 for the course ACCT 131 taught by Professor N/a during the Spring '11 term at Butler Community College.

Page1 / 3

chap.7. Cost - Reshika Ghale 7-29 1 Actual budget Flexible...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online