Q19 Winston Company had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $ 266,000 $ 450,000 $ 716,000 Variable Costs 192,000 225,000 417,000 Contribution Margin $ 74,000 $ 225,000 $ 299,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 24,000 $ 117,000 $ 141,000 Selling Price per unit $ 100 $ 50 On September 1, the following actual operating results for August were reported: Product X Product Y Total Sales $ 280,000 $ 470,000 $ 750,000 Variable Costs 154,000 188,000 342,000 Contribution Margin $ 126,000 $ 282,000 $ 408,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 76,000 $ 174,000 $ 250,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The firm's market size variance for the period is: (Round your intermediate calculations to 2 decimal places. Round your percentages to 4 decimal places. Example: Round .14447 to .1445 or 14.45%.) Multiple Choice $12,030 favorable. $19,550 favorable. $68,997 unfavorable. $46,010 favorable. $23,010 unfavorable.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Q19
Winston Company had two products code named X and Y. The firm had the following budget for August:
| Product X | Product Y | Total | |
|---|---|---|---|
| Sales | $ 266,000 | $ 450,000 | $ 716,000 |
| Variable Costs | 192,000 | 225,000 | 417,000 |
| Contribution Margin | $ 74,000 | $ 225,000 | $ 299,000 |
| Fixed costs | 50,000 | 108,000 | 158,000 |
| Operating Income | $ 24,000 | $ 117,000 | $ 141,000 |
| Selling Price per unit | $ 100 | $ 50 |
On September 1, the following actual operating results for August were reported:
| Product X | Product Y | Total | |
|---|---|---|---|
| Sales | $ 280,000 | $ 470,000 | $ 750,000 |
| Variable Costs | 154,000 | 188,000 | 342,000 |
| Contribution Margin | $ 126,000 | $ 282,000 | $ 408,000 |
| Fixed costs | 50,000 | 108,000 | 158,000 |
| Operating Income | $ 76,000 | $ 174,000 | $ 250,000 |
| Units Sold | 3,000 | 9,000 |
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The firm's market size variance for the period is: (Round your intermediate calculations to 2 decimal places. Round your percentages to 4 decimal places. Example: Round .14447 to .1445 or 14.45%.)
-
$12,030 favorable.
-
$19,550 favorable.
-
$68,997 unfavorable.
-
$46,010 favorable.
-
$23,010 unfavorable.
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