In September, Larson Inc. sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 were fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $79,000U; and, sales volume variance, in terms of contribution margin, $23,000U. The total sales revenue in the master budget for September, to the nearest dollar, was:

In September, Larson Inc. sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 were fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $79,000U; and, sales volume variance, in terms of contribution margin, $23,000U. The total sales revenue in the master budget for September, to the nearest dollar, was:

Name: In September, Larson Inc. sold 50,000 unitsof its only product for $3
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: In September, Larson Inc. sold 50,000 unitsof its only product for $328,000, andincurred a total cost of $305,000, of which$33,000 were fixed costs. The flexiblebudget for September showed total sales of$380,000. Among variances of the periodwere: t

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 33P

See similar textbooks

Similar questions

Rosenberry Company computed the following revenue variances for January: Revenue price variance (350,000) Favorable Revenue volume variance50,000 Unfavorable Assuming that the planned selling price per unit was 10 and that actual sales were 175,000 units, determine the following: a. Actual selling price of January. b. Planned number of units that were to be sold in January.
Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
Budgeted unit sales for the entire countertop oven industry were 2,500,000 (of all model types), and actual unit sales for the industry were 2,550,000. Recall from Cornerstone Exercise 18.6 that Iliff, Inc., provided the following information: Required: 1. Calculate the market share variance (take percentages out to four significant digits). 2. Calculate the market size variance. 3. What if Iliff actually sold a total of 41,000 units (in total of the two models)? How would that affect the market share variance? The market size variance?
A manufacturer planned to use $78 of variable overhead per unit produced, but in the most recent period, it actually used $76 of variable overhead per unit produced. During this same period, the company planned to produce 500 units but actually produced 540 units. What is the variable overhead spending variance?
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per month. How much is the favorable or unfavorable variance if 14,000 units were produced for a total of $97,000?
In September, Larson Inc. sold 50,000 units of its only product for $317,000, and incurred a total cost of $295,000, of which $32,000 was fixed costs. The flexible budget for September showed total sales of $370,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $77,000U; and, sales volume variance, in terms of contribution margin, $34,000U. The amount of operating income in the flexible budget (FB) for September, to the nearest dollar, was: Multiple Choice $66,000. $58,000. $99,000. $50,000. $91,000.
In September, Larson Inc. sold 45,000 units of its only product for $438,000, and incurred a total cost of $375,000, of which $43,000 were fixed costs. The flexible budget for September showed total sales of $450,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $75,000U; and, sales volume variance, in terms of contribution margin, $56,000U. The total sales revenue in the master budget for September, to the nearest dollar, was: SHOW ALL WORK
Munoz Educational Services had budgeted its training service charge at $69 per hour. The company planned to provide 31,000 hours of training services during the year. By lowering the service charge to $63 per hour, the company was able to increase the actual number of hours to 32,800. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) c. Did lowering the price of training services increase revenue? Variance a. Volume variance b. Flexible budget variance c. Was the decision profitable? MacBook Air
In September, Numbers Incorporated sold 40,000 units of its only product for $262,000 and incurred a total cost of $245,000, of which $27,000 was fixed costs. The flexible budget for September showed total sales of $320,000. Among variances of the period were: total variable cost flexible-budget variance, $6,000U; total flexible-budget variance, $67,000U; and, sales volume variance, in terms of contribution margin, $29,000U. The actual amount of operating income earned in September was: Multiple Choice $17,000. $40,000. $67,000. $84,000. $113,000.
In September, Numbers Incorporated sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 was fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $79,000U; and, sales volume variance, in terms of contribution margin, $35,000U. The sales volume variance, in terms of operating income, for September was:
In September, Numbers Incorporated sold 40,000 units of its only product for $361,000, and incurred a total cost of $335,000, of which $36,000 was fixed costs. The flexible budget for September showed total sales of $410,000. Among variances of the period were: total variable cost flexible-budget variance, $9,000U; total flexible-budget variance, $70,000U; and, sales volume variance, in terms of contribution margin, $38,000U. The sales volume variance, in terms of operating income, for September was: Multiple Choice О $122,000 unfavorable. $87,000 unfavorable. O $21,000 unfavorable. $32,000 unfavorable.