Pokeman Bunch Inc., manufactures PokeMonster figures and has the following data

Question

Pokeman Bunch Inc., manufactures PokeMonster figures and has the following data from its operation o he year just completed. Flexible Budoet B Laster åctual å Units Sales (dollars) 1400 $87,600 $16,700 Favorable $57,000 ariable cost Contribution margin Fixed cost Operating income $1.380 U $4,700 $7,090 The total operating-income variance i $3,061 favorable $4,869 favorable $5,119 favorable $1,808 favorable $5,869 favorable Pokeman Bunch Inc., manufactures PokeMonster figures and has the following data from its operation o the year just completed. Flexible Budoet B Laster Budget éctual å Units Sales (dollars) 1400 $87,600 $16,700 Favorable $57,000 ariable cost Contribution margin Fiked cost Operating income $1.380 U $4,700 $7,090 The flewible budget variance in terms of operating income is $5,119 favorable $5,869 favorable $1,808 favorable $4,869 favorable $3,061 favorable

Explanation / Answer

Sales volume variance SP*(Actual units-standard units)=-16700 16700/(1400-1110) 57.59 Master budget Sales=1110*57.59 63920.69 Less: variable cost 57000 Less: Fixed cost 4700 Net operating income 2221 Total operating Income variance Actual operating income-Budget operating income 7090-2221 4869 F Ans option B $4869 favorable ans 2 Budgeted Variable cost per unit 57000/1110 51.351 Flexible Budget Sales 1400*57.59 80620.69 Less: variable cost (1400*51.35) 71891.89 Less: Fixed cost 4700 Net operating income 4029 Flexivle budget operating income variance Actual operating income-Flexible Budget operating income 7090-4029 3061 F option 5 $3061 favorable

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