This topic contains a solution. Click here to go to the answer

Author Question: Kevin Jarvis is the controller of Bitterroot Industries. Kevin prepared the following budgeted ... (Read 182 times)

meganh99

  • Full Member
  • ***
  • Posts: 143
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 sales volume variance for direct material?
◦ $34,000 favorable
◦ $6,000 unfavorable
◦ $28,000 unfavorable
◦ $28,000 favorable


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by meganh99 on Feb 5, 2023

fdsajkl

  • Full Member
  • ***
  • Posts: 160
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.
Answer Preview
Only 26% of students answer this correctly




meganh99

  • Member
  • Posts: 143
Reply 2 on: Feb 5, 2023
:D TYSM


deja

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

For a complete list of videos, visit our video library