XYZ Company’s budgeted and actual results for last year are as follows:
Master Budget Actual Results
Price $450 $600
Sales Volume (units) 6,000 4,000
Unit VC $150 $150
Fixed Costs $250,000 $250,000
Required:
(a) Compute budgeted and actual revenue, costs and profits:
Master Budget Actual
Sales Volume (units) _____________ ____________
Revenue $____________ $___________
Variable costs $____________ $___________
Contribution margin $_____________ $___________
Fixed costs $_____________ $____________
Profit $_____________ $____________
In (b)-(d) below, enter favorable and unfavorable variances as positive and negative numbers, without F or U.
(b) How much is the total profit variance?
(enter negative numbers with a minus, i.e. enter negative $100 as -100 not ($100) ) $
(c) How much is the sales volume variance?
(enter negative numbers with a minus) $
(d) How much is the sales price variance?
(enter negative numbers with a minus) $