The Groton Company produces engine parts for car manufacturers. A new accountant intern at Groton...
70.2K
Verified Solution
Link Copied!
Question
Accounting
The Groton Company produces engine parts for car manufacturers. A new accountant intern at Groton has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December31,2017. The following table is what remains of the data.
Performance Report
Year Ended December 31, 2017
Actual
Flexible-Budget
Flexible
Sales-Volume
Static
Results
Variances
Budget
Variances
Budget
Units sold
106,000
97,000
Revenues (sales)
$683,700
$315,250
Variable costs
430,000
145,500
Contribution margin
253,700
169,750
Fixed costs
178,950
95,000
Operating income
$74,750
$74,750
PrintDone
1.
Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.)
2.
What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?
3.
Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
