Dudes Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook...
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Accounting
Dudes Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget and actual results for September 2014 included these data:
The executive vice president of the company observed that the operating income for September was much lower than anticipated, despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to provide explanations for the disappointing September results. Dudes Printers develops its flexible budget on the basis of budgetedper-output-unit revenue and per-output-unit variable costs without detailed analysis of budgeted inputs.
Requirements:
The budgeted amounts for September 2014 were: 18,000 23 6 Fixed costs for the month $ 135,000 The actual results for September 2014 were as follows: Number of checkbooks Selling price per book Variable cost per book Number of checkbooks produced and sold Average selling price per book Variable cost per book Fixed costs for the month 14,500 24 4 140,000 $
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