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Author Question: Kevin Jarvis is the controller of Bitterroot Industries. Kevin prepared the following budgeted ... (Read 64 times)

jacob816

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on: Feb 5, 2023
Kevin Jarvis is the controller of Bitterroot Industries. Kevin prepared the following budgeted income statement at various levels of sales. After careful review of the budgeted income statements, and after discussions with the sales and production managers, the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units.

Budgeted Income Statements
Units20,00030,00040,000
Sales$1,240,000$1,860,000$2,480,000
Variable costs​​​
  Direct material340,000510,000680,000
  Direct labor300,000450,000600,000
  Overhead   360,000   540,000   720,000
Total variable costs1,000,0001,500,0002,000,000
Contribution margin240,000360,000480,000
Fixed costs​​​
  Overhead62,00062,00062,000
  Rent46,00046,00046,000
  Insurance28,00028,00028,000
  Advertising    15,000     15,000     15,000
Total fixed costs  151,000   151,000   151,000
Operating income$     89,000$   209,000$   329,000

Actual results for the year were 28,000 units, reflected in the following income statement:

Sales$1,764,000
Variable costs​
  Direct material504,000
  Direct labor434,000
  Overhead   509,600
Total variable costs1,447,600
Contribution margin316,400
Fixed costs​
  Overhead64,200
  Rent45,800
  Insurance29,100
  Advertising    14,000
Total fixed costs   153,100
Operating income$   163,300
What is the flexible budget variance for direct labor?
◦ $16,000 favorable
◦ $14,000 favorable
◦ $30,000 unfavorable
◦ $14,000 unfavorable
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by jacob816 on Feb 5, 2023

dude123

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jacob816

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Reply 2 on: Feb 5, 2023
Gracias!

pratush dev

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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