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The master budget at Western Company last period called forsales of 225,100 units at...

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Accounting

The master budget at Western Company last period called forsales of 225,100 units at $9.10 each. The costs were estimated tobe $3.76 variable per unit and $225,100 fixed. During the period,actual production and actual sales were 230,100 units. The sellingprice was $9.20 per unit. Variable costs were $4.60 per unit.Actual fixed costs were $225,100.

Required:

Prepare a profit variance analysis. (Indicate the effectof each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select eitheroption.)

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Western Company
Profit variance Analysis
Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget
Selling units (q)              2,30,100       2,30,100             2,25,100
Selling price per unit (i) $ 9.20 $ 9.10 $ 9.10
Variable cost per unit (ii) $ 4.60 $ 3.76 $ 3.76
Sales Revenue (q x (i)) $       21,16,920 $          23,010 F $20,93,910 $        45,500 F $      20,48,410
Less Variable Expenses (q X (ii)) $       10,58,460 $   1,93,284 U $   8,65,176 $        18,800 U $         8,46,376
Contribution margin $       10,58,460 $   1,93,284 U $          23,010 F $12,28,734 $        26,700 F $      12,02,034
Less Fixed Expenses: $          2,25,100 $                -   None $   2,25,100 $                 -   None $         2,25,100
Operating Profits $          8,33,360 $   1,93,284 U $          23,010 F $10,03,634 $        26,700 F $         9,76,934

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In: AccountingThe master budget at Western Company last period called forsales of 225,100 units at $9.10...The master budget at Western Company last period called forsales of 225,100 units at $9.10 each. The costs were estimated tobe $3.76 variable per unit and $225,100 fixed. During the period,actual production and actual sales were 230,100 units. The sellingprice was $9.20 per unit. Variable costs were $4.60 per unit.Actual fixed costs were $225,100.Required:Prepare a profit variance analysis. (Indicate the effectof each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select eitheroption.)

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