Required:A. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?B. Calculate all the required variances and present the variance analysis report. Question:1The LM30 Company produces circuits for TV manufacturers. A new accountant intern atLM30 has accidentally deleted the company's variance analysis calculations for the yearended December 31, 2020. The following table is what remains of the data.Performance Report, Year Ended December 31, 2020FlexibleSalesBudget FlexibleActual Results Variance Budget VariancesVolumeStaticBudgetUnits Sold170,000150,000Revenues$1,080,000.00$900,000.00$745,000.00$335,000.00$600,000.00$300,000.00Variable CostsContribution marginFixed costs$140,000.00$120,000.00Operating income$195,000.00$180,000.00

SOLUTION: A. Budgeted sales price per unit = 900000/150000= $6 per unit Budgeted variable cost per…

Required: A. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? B. Calculate all the required variances and present the variance analysis report.

Required: A. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? B. Calculate all the required variances and present the variance analysis report.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Required:

A. What are the actual and budgeted selling prices? What are the actual and budgeted
variable costs per unit?
B. Calculate all the required variances and present the variance analysis report.

Question:1
The LM30 Company produces circuits for TV manufacturers. A new accountant intern at
LM30 has accidentally deleted the company's variance analysis calculations for the year
ended December 31, 2020. The following table is what remains of the data.
Performance Report, Year Ended December 31, 2020
Flexible
Sales
Budget Flexible
Actual Results Variance Budget Variances
Volume
Static
Budget
Units Sold
170,000
150,000
Revenues
$1,080,000.00
$900,000.00
$745,000.00
$335,000.00
$600,000.00
$300,000.00
Variable Costs
Contribution margin
Fixed costs
$140,000.00
$120,000.00
Operating income
$195,000.00
$180,000.00

Definition Definition Analysis of a difference between planned and actual behavior. After analyzing differences, companies find the reasons for variance so that the necessary steps should be taken to correct that variance.

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