Please show your work. I need all parts of the question answered. Thank you! Mas
ID: 2374186 • Letter: P
Question
Please show your work. I need all parts of the question answered. Thank you!
Master budget date: Sales of 18,000 pairs at $ 60 a pair; variable cost
of $ 46 a pair: total fixed costs of $ 36,000.
Actual results : Sales of 19,200 pairs at $ 58 a pair; variable cost
of $ 48 a pair; total fixed costs of $ 36,400.
Required:
What were the total sales-activity and flexible-budget variances for the month of April? ( Use the 5 column budget variance analysis format )
Explanation / Answer
budgeted cost actual vost variance
1 sales 18000 pair 19200 pair 1200 pair
2 sale price Rs 60 Rs 58 - Rs 2
3 variable cost Rs 46 Rs 48 Rs 2
4 Fixed cost Rs 36000/18000=2 Rs 36400/19200=1.90 - Rs0.10