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pduvin pduvin
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6 years ago
Caan Corporation used the following data to evaluate their current operating system. The company sells items for $20 each and used a budgeted selling price of $20 per unit.

   Actual   Budgeted
   Units sold   200,000 units   203,000 units
   Variable costs   $1,250,000   $1,500,000
   Fixed costs   $ 925,000   $ 900,000

Required:
Prepare a Level 1 static-budget variance analysis using a income statement in contribution margin format. Use the following three column headings: Actual Results, Static Budget, Static-budget Variance.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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#1
6 years ago
Actual      Static     Static-budget
            Results      Budget       Variance
   Units sold   200,000   203,000

   Revenues   $4,000,000   $4,060,000   $60,000   U
   Variable costs   1,250,000   1,500,000   250,000   F
   Contribution margin   $2,750,000   $2,560,000   190,000   F
   Fixed costs   925,000   900,000   25,000   U
   Operating income   $1,825,000   $1,660,000   $165,000   F
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