Student Name:
Class:
Master
Budget
Actual Marketing and Flexible Budget Sales Master Budget
(120,000 Manufacturing Administrative Sales Price (120,000 Activity (108,000
units) Variances Variances Variance units) Variance units)
Part b. Round all computations to the nearest dollar.
Favorable variances are positive; unfavorable variances are negative
GIBSON CORPORATION
Instructor
McGraw-Hill/Irwin
Problem 16-46
Part a.
Sales revenue
Variable costs
Manufacturing
Marketing and administrative
GIBSON CORPORATION
Given Data P16-46:
Actual results for period:
Sales volume
Contribution margin at planned production
Percent of sales volume budgeted for
variable marketing and administrative costs
Estimated manufacturing fixed costs per unit
Budgeted operating profit per unit
Selling price per unit
Contribution margin
Fixed costs
Manufacturing
Marketing and administrative
Planned production in units
Student Name:
Class:
Reported
Income Marketing and Flexible Sales
Master Budget
Statement
Manufacturing
Administrative
Sales Price
Budget (units)
Activity (2,400
(2,250 units) Variance Variance Variance 2,250 Variance units)
117,000$ (4,500)$ 121,500$ (8,100)$ 129,600$
30,600 3,600$ 34,200 2,280 36,480
Variable manufacturing costs
Sales revenue
Favorable variances are positive; unfavorable variances are negative
Problem 16-47
McGraw-Hill/Irwin
Instructor
Continue on to the next logical calculation.
Begin your computation chain with Flexible Budget (units)
The next computation is for Sales Price Variance, which is computed by subtracting Flexible Budget Sales revenue (a given)
from Reported Income Statement Sales revenue (another given).
Variable marketing and administrative
Contribution margin
All computations should be made in the yellow answer cells.
Reported
Income
Marketing and
Sales Flexible Sales Master
Statement
Manufacturing
Administrative
Price Budget Activity Budget
(2,250 units) Variance Variance Variance (a units) Variance (2,400 units)
PROFIT VARIANCE ANALYSIS
Given Data P16-47:
Student Name:
Class:
Master Flexible
Budget Budget
600 units 180 units
96,000$ 86,400$
Manufacturing costs
Sales Revenue
ODESSA, INC.
Problem 16-50
McGraw-Hill/Irwin
Variable costs:
Instructor
Administrative
Total fixed costs
Operating profits
Administrative
Total variable costs
Contribution margin
Less fixed costs:
Manufacturing
Marketing
Direct labor
Variable overhead
Marketing
Actual
Master Budget
(based on (based on
actual of budgeted
540 units) 600 units)
88,320$ 96,000$
13,632 14,400
11,520 13,440
Direct labor
Materials
Sales revenue
Less
Manufacturing costs
ODESSA, INC.
Given Data P16-50:
Administrative
Total fixed costs
Total variable costs
Contribution margin
Fixed costs
Manufacturing
Marketing
Variable overhead
Marketing
Administrative
Student Name:
Class:
2 gallons 6 per gallon 12$ per unit
Actual Inputs
Actual Price @ Standard Efficiency Flexible
Cost Variance Price Variance Budget
27,216 «- Correct! 3,024 «- Correct! 30,240 «- Correct! (2,880) «- Correct! 27,360 «- Correct!
60,750 «- Correct! (3,150) «- Correct! 57,600 «- Correct! 3,960 «- Correct! 61,560 «- Correct!
Direct materials
Standard costs:
Direct materials
Favorable variances are positive; Unfavorable variances are negative.
Standard
per unit
Standard Cost
per unit
Standard Cost
Instructor
McGraw-Hill/Irwin
Problem 16-59
DELTA PRODUCTS
Quantity
of input
of output
3 hours 36 per hour 108 per unit
Materials used
Actual results:
Actual cost per gallon
Labor hours worked
Actual rate per hour
Total standard cost per unit
Actual labor costs
Hours
Cost per hour
Actual variable overhead
Price per gallon
Output in units
15,120
Materials used:
Gallons
DELTA PRODUCTS
Given Data P16-59:
Actual costs and activities for the month:
Standard costs (per unit of output)
Current period information:
Direct materials, 6 gallons @ $2.00 per gallon
Direct labor, 3 hours @ $36 per hour
Factory overhead