From the following data relating to products A and B calculate the sales variances based on profit. Products Quantity in units Selling price per unit Cost price per unit $. $. Budgeted sales A B A B 10,000 15,000 25,000 9,000 16,000 25,000 20 10 Actual sales 19 11 17 6 17 6 Profit per unt $, 3 2 5

From the following data relating to products A and B calculate the sales variances based on profit. Products Quantity in units Selling price per unit Cost price per unit $. $. Budgeted sales A B A B 10,000 15,000 25,000 9,000 16,000 25,000 20 10 Actual sales 19 11 17 6 17 6 Profit per unt $, 3 2 5

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3EB: A product has a sales price of $175 and a per-unit contribution margin of $75. What is the...

See similar textbooks

Related questions

Q: The following information applies to the questions displayed below] Shadee Corporation expects to…

A: Budgeting is very useful method of estimating revenue and expense for an organization. It is…

Q: What is the purpose of adjusting entries in accounting, and what types of adjustments are commonly…

A: To ensure that the financial statements correctly reflect a company's financial status and…

Q: Transactions 1) Provided services on account for $120,000, terms net 30; 2) Payments totalling…

A: Accounting Equation -Accounting Equation is calculated using the followings equation -Assets =…

Q: Explain accrual basis accounting, and when to recognize revenues and expenses and how it differs…

A: Accounting is a way of keeping track of financial transactions in which earnings and costs are…

Q: Nov. 28 Dec. 31 Dec. 31 3 Il wanted to recognize the efforts of a key employee and offered him the…

A: Shareholder Equity -Equity held by shareholders refers to the sum that a company's founders have…

Q: Tec Inc. produces and sells computers, providing customers with a one-year warranty on all its…

A: Hi studentSince there are multiple questions, we will answer only first question.Warranty is a form…

Q: Skysong Factory provides a 2-year warranty with one of its products which was first sold in 2025.…

A: The business entities enter the commercial transactions into the journal to keep track of them. To…

Q: Which of the following is excluded when projecting future cash flows for the purpose of determining…

A: As per International Accounting Standard 36 Impairment of assets When projecting future cash flows…

Q: Beck Construction Company began work on a new building project on January 1, 2023. The project is to…

A: The principle of conservatism guides the recognition of revenue in accounting. Anticipated gains are…

Q: Exercise 10-5 (Algo) Return on Investment (ROI) [LO10-1) Provide the missing data in the following…

A: Margin - Margin is the net operating margin earned by the organization it is calculated by Net…

Q: An auditor looks at purchase orders to ensure the appropriate client personnel have approved the…

A: According to the question given, we need to select the correct option from the options given.Test of…

Q: Levine Inc., which produces a single product, has prepared the following standard cost sheet for one…

A: The difference between the amount of materials actually utilized and the amount projected to be used…

Q: Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for…

A: Investment in Associates and Joint venture and SubsidiaryEquity Accounting method - This method is…

Q: Carolyn has an AGI of $38,000 (all from earned income) and two qualifying children and is filing as…

A: The Earned Income Credit (EIC) is a tax credit available to eligible individuals and families with…

Q: In recent years, why has labor become such a small part of product costs and how can its use in…

A: Overhead allocation is the process of distributing indirect costs or overhead expenses to specific…

Q: What is the objective of all Financial Statements

A: All type of companies makes financial statements.There are three main financial statements that a…

Q: The following transactions were selected from among those completed by December: November 20…

A: Net sales, also known as net revenue or net sales revenue, refers to the total amount of sales…

Q: What are the different approaches to income measurement in accounting theory, and what are the…

A: Income measurement in accounting theory refers to the process of determining and quantifying the…

Q: Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000…

A: Flexible Budget -A flexible Budget is a Budget where both fixed and variable costs take place.…

Q: Lyndale, Inc.'s sales are $365,000 and $280,000 during the current and prior years, respectively.…

A: To Increase or decrease in sale as a percent between the two period.

Q: Can you provide steps in completing a check register for accounting?

A: Check register refers to the checkbook register which usually records the financial transaction done…

Q: When the income effect of a LIFO liquidation is material, the SEC requires that the 10-K report…

A: LIFO (Last-In, First-Out) liquidation refers to a situation in which a company using the LIFO…

Q: Concord Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of…

A: Depreciation Expense :— It is the allocation of depreciable cost over the useful life of asset.…

Q: french fragrances budgeted for 12000 bottles of perfume belle during May. The unit cost of Belle was…

A: The unit cost is calculated as total costs divided by the number of units produced. The total costs…

Q: Use the following information for the Exercises below. (Algo) [The following information applies to…

A: The depreciation expense is charged on the fixed assets as reduction in the value of fixed assets…

Q: 1. Prepare the following four journal entries: (a) to record actual variable overhead costs, (b) to…

A: Journal entry is an art of recording, classifying and summarizing the business transactions into…

Q: Greg Smith is a self-employed psychologist. He meets wi house has a square footage of 2,400 square…

A: We must identify the costs that are directly connected to the business usage of the home office in…

Q: 22/06/2023 Q1. ABC Company is a manufacturing company that produces product (X) and sell it for…

A: Variable Costing -In this costing method, variable costs are considered while preparing the cost of…

Q: An anticipated purchase of equipment for $490,000 with a useful life of 8 years and no residual…

A: Payback period :— It is the time period in years which is required to recover all the cash outflows…

Q: Comparative data on three companies operating in the same industry follow. The minimum required ROI…

A: Using the Formulas:Profit Margin Net Operating Income /Sales Asset Turnover Sales /AOAROINet…

Q: X purchased a machinery on 1st January 2017 fort. 4,80,000 and spent t 20,000 on its installation.…

A: Under this method, depreciation expense is calculated as a fixed percentage of the asset's net book…

Q: Northern Washington Lumber Company grows, harvests, and processes timber for use as building lumber.…

A: Beginning work in process are the units that are brought forward to the current period from the…

Q: Springer Company produces and sells home-ground wheat flour. The flour mill division sells to the…

A: Transfer pricing concept is use to decide selling price to each other department. Where one…

Q: Required: 1. For the months of February and March, what are the budgeted cash payments for purchases…

A: Cash Budget helps in estimating the cash requirement in the future period(s).It helps in managing…

Q: Cash Flow from Operating Activities Prior Year Activity for Seville Corporation: Accounts payable…

A: Cash Flow Statement -The Cash Flow Statement includes the inflow and outflow of cash during the…

Q: Early in January 2022, Tyler Incorporated acquired a new machine and incurred $8,000 of interest,…

A: As you have asked multiple sub-parts we can solve only first three for you please repost others part…

Q: Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning…

A: Answer:- 1. The cost of goods sold = Net sales - Gross profit

Q: Required information [The following information applies to the questions displayed below.] The…

A: Equity, Assets and Liabilities are three important elements of accounting equation in business.…

Q: [The following information applies to the questions displayed below.] Chuck Wagon Grills,…

A: Variable Costing -Under the variable costing method, all the variable costs are considered while…

Q: Reconciliations to yield government-wide financial statements (deferred revenues and compensated…

A: Deferred revenue generally defined as the payments received from customers for the goods or services…

Q: Financial Statements Prepare the Financial Statements for the fiscal year ended December 31, 2021…

A: HORIZONTAL ANALYSISHorizontal Analysis is one of the Important analysis techniques of financial…

Q: Goodwin Bike’s began operations in April 2022 and had the following transactions. Owner…

A: Accounting equation is one of the fundamental concept being used in business. This says that total…

Q: ! Required information [The following information applies to the questions displayed below.] Melissa…

A: Business expenses are costs incurred in the ordinary course of business. They can apply to small…

Q: Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow…

A: Cash flows statement is part of financial statements which presents flow of cash in three…

Q: In 2019, José purchased a house for $189,900. He used the house as his personal residence. In…

A: Depreciation is a method of accounting in which book value of an assets is reduced due to its…

Q: Assume a company is preparing a budget for its first two months of operations. During the first and…

A: The cash budget is prepared to record the cash transactions and estimate the cash balance at the end…

Q: Describe the process of preparing an income statement and a balance sheet, including the specific…

A: A financial statement called an income statement, also known as a profit and loss statement or a…

Q: The Central Valley Company is a manufacturing firm that produces and sells a single product. The…

A: Cost of goods sold (COGS) refers to the direct costs incurred in producing or acquiring the goods or…

Q: Area Equivalent Units of Production Data for the two departments of Kimble & Pierce Company for June…

A: FIFO METHOD :— Under this method, equivalent units is calculated by adding equivalent units in…

Q: Required: 1. Calculate (or determine) the following budgeted overhead costs for the year: (a) the…

A: Variable cost refers to those expenses that change with the change in the output of products…

Question

Please do not give solution in image format thanku

From the following data relating to products A and B calculate
the sales variances based on profit.
Products Quantity in units Selling price per unit
$.
A
B
A
B
10,000
15,000
25,000
9,000
16,000
25,000
Budgeted sales
20
10
Actual sales
19
11
Cost price per unit
$.
17
6
17
6
Profit per unt
$,
3
4
2
5

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Basics

VIEW

Step 2: Calculations

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The sales price for a product provides a gross profit of 14% of sales price. What is the gross profit as a percentage of cost? 14%. 16.28%. 12.28%. Not enough information is provided to determine.
The income data of SB Kopi for the years 200B and 200A are as follows: 200B 200A Variance Sales 276,000.00 204,000.00 72,000.00 F Cost of Sales 151,800.00 122,400.00 29,400.00 U Gross Profit 124,200.00 81,600.00 42,600.00 Question: the 200B cost price is higher (lower) than the 200A cost price by: (12.745%) (10%) 10% 12.745%
The Marginal Revenue function for a company's product is:MR = 240000 - 22xwhere x equals the number of units sold. If total revenue equals 0 when 0 units are sold, determine the total revenue.
The income data of SB Kopi for the years 200B and 200A are as follows: 200B 200A Variance Sales 276,000.00 204,000.00 72,000.00 F Cost of Sales 151,800.00 122,400.00 29,400.00 U Gross Profit 124,200.00 81,600.00 42,600.00 Question: If the sales price in 200B is approximately 20% higher that the sales price in 200A, the P72,000 increase in sales may be analyzed into: Sales Price Variance Sales Volume Variance a 46,000 favorable 26,000 unfavorable b 46,000 unfavorable 26,000 favorable c 26,000 favorable 46,000 favorable d 46,000 favorable 26,000 favorable Group of answer choices B A C D Question: The 29,400 increase in cost of sales may be analyzed into: Cost Volume Variance Cost Price Variance a 15,000 favorable…
An analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs. A B 1. 2 Profit per Unit 8 3 Quantity |10,100 4 Gross Profit 5 6 Total Costs 6,100 7 8 Net Profit With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells? Cell Value Gross Profit Net Profit
Using the data below compute of the following: Contribution margin per unit in 3. 2018, 4. 2019 5. 2020 BEP in sales units in 6. 2018 7. 2019 8. 2020 BEP in peso sales in 9. 2018 10. 2019 11. 2020 What is the required sales in unit for the desired Net profit 12. 2018 13. 2019 14. 2020 2018 2019 2020 Sales per unit Desired profit Fixed costs. P7.50 P9.00 P10.00 P15,000 P28,000 P30,000 360,000 375,000 420,000 Variable cost Cost per unit: Variable cost 2.50 4.00 4.00
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price…
If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Soloct
Distinguish between gross profit as a percentage of costand gross profit as a percentage of sales price. Convertthe following gross profit percentages based on cost togross profit percentages based on sales price: 25% and331/3%. Convert the following gross profit percentagesbased on sales price to gross profit percentages based oncost: 331/3% and 60%
Calculate total revenue and fill in the table below. Price Quantity Total Revenue S50 60 $40 06 $35 110 S30 140 $25 190
The total revenue function for a product is given by R=805 x dollars, and the total cost function for this same product is given by c=24500+70x+x square, where C is measured in dollars. For both functions, the input x is the number of units produced and sold. a. Form the profit function for this product from the two given functions. b. What is the profit when 26 units are produced and sold? c. What is the profit when 40 units are produced and sold? d. How many units must be sold to break even on this product?
Calculating Gross Profit Percentage Given Percentage of Cost The following are calculations of gross profit as a percentage of cost: 25%, 30%, and 35% Compute gross profit as a percentage of sales for each of the three percentage of cost figures. Note: Round to the nearest whole percentage (for example, enter 20 for 20.44%)