As the new accountant for Cohen & Company, you have been asked to provide a succinct analysis of financial performance for the
year just ended. You obtain the following information that pertains to the company's sole product:
Required:
What was the actual operating income for the period?
What was the company's master budget operating income for the period?
a What was the total master budget variance, in terms of operating income, for the period? b Is this variance favorable or
unfavorable? If a variance has no amount, select "None" in the corresponding dropdown cell.
The total master budget variance for a period can be decomposed into a total flexible budget variance and a sales volume variarice.
a What was the total flexiblebudget variance for the period? b Was this variance favorable or unfavorable? c What was the sales
volume variance for the period? d Was this variance favorable or unfavorable? If a variance has no amount, select "None" in the
corresponding dropdown cell.
