compute variances for the following items and indicate the effect of each variance b 452497
Aug 29, 2021 | Uncategorized
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Compute variances for the following items and indicate the effect of each variance by selecting “Favorable” or “Unfavorable”. (Input all amounts as positive values. Omit the “$” sign in your response.)
|
| Item |
Budget |
Actual |
Variance |
Effect |
| Sales price |
$ |
650 |
|
$ |
525 |
|
$ |
|
(Click to select) Unfavorable Favorable |
| Sales revenue |
$ |
580,000 |
|
$ |
600,000 |
|
$ |
|
(Click to select) Unfavorable Favorable |
| Cost of goods sold |
$ |
385,000 |
|
$ |
360,000 |
|
$ |
|
(Click to select) Unfavorable Favorable |
| Material purchases at 5,000 pounds |
$ |
275,000 |
|
$ |
280,000 |
|
$ |
|
(Click to select) Favorable Unfavorable |
| Materials usage |
$ |
180,000 |
|
$ |
178,000 |
|
$ |
|
(Click to select) Favorable Unfavorable |
| Production volume |
|
950 |
units |
|
900 |
units |
|
units |
(Click to select) Favorable Unfavorable |
| Wages at 4,000 hours |
$ |
60,000 |
|
$ |
58,700 |
|
$ |
|
(Click to select) Favorable Unfavorable |
| Labor usage at $16 per hour |
$ |
96,000 |
|
$ |
97,000 |
|
$ |
|
(Click to select) Unfavorable Favorable |
| Research and development expense |
$ |
22,000 |
|
$ |
25,000 |
|
$ |
|
(Click to select) Unfavorable Favorable |
| Selling and administrative expenses |
$ |
49,000 |
|
$ |
40,000 |
|
$ |
|
(Click to select) Unfavorable Favorable |
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