Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the coming year contained the following items sales revenue, $383,500, variable costs, $253,500, fixed costs, $100,700. Actual results for the year were as follows: sales revenue, $363,500; variable costs, $225,700; foxed costs, $96,400 The flexible-budget operating income for the year was $35,700 a. What is the total master (static) budget variance in operating profit for the period? b What portion of the total master (static) budget variance is attributable to actual sales volume being different from planned sales volume? What portion of the total variance is due to a combination of selling price and costs (variable cost per unit and total fixed costs) being different from budgeted amounts? a Total master (static) budget variance b Sales volume variance c Flexible budget variance
Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the coming year contained the following items sales revenue, $383,500, variable costs, $253,500, fixed costs, $100,700. Actual results for the year were as follows: sales revenue, $363,500; variable costs, $225,700; foxed costs, $96,400 The flexible-budget operating income for the year was $35,700 a. What is the total master (static) budget variance in operating profit for the period? b What portion of the total master (static) budget variance is attributable to actual sales volume being different from planned sales volume? What portion of the total variance is due to a combination of selling price and costs (variable cost per unit and total fixed costs) being different from budgeted amounts? a Total master (static) budget variance b Sales volume variance c Flexible budget variance
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...
Related questions
Question
![Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the coming year contained the
following items sales revenue, $383,500, variable costs, $253,500; fixed costs, $100,700. Actual results for the year were as follows:
sales revenue, $363,500, variable costs, $225,700, fixed costs, $96,400 The flexible-budget operating income for the year was
$35,700
a. What is the total master (static) budget variance in operating profit for the period?
b What portion of the total master (static) budget variance is attributable to actual sales volume being different from planned sales
volume?
What portion of the total variance is due to a combination of selling price and costs (variable cost per unit and total fixed costs) being
different from budgeted amounts?
a Total master
b. Sales volume variance
e Flexible-budget variance
(static) budget variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24c443f1-a411-4e92-ac1b-eb66f41abd4c%2Fe654bc4f-8ea0-42f0-a8af-7b9f7627c156%2Fqotpjkp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the coming year contained the
following items sales revenue, $383,500, variable costs, $253,500; fixed costs, $100,700. Actual results for the year were as follows:
sales revenue, $363,500, variable costs, $225,700, fixed costs, $96,400 The flexible-budget operating income for the year was
$35,700
a. What is the total master (static) budget variance in operating profit for the period?
b What portion of the total master (static) budget variance is attributable to actual sales volume being different from planned sales
volume?
What portion of the total variance is due to a combination of selling price and costs (variable cost per unit and total fixed costs) being
different from budgeted amounts?
a Total master
b. Sales volume variance
e Flexible-budget variance
(static) budget variance
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning