Exam 7: Flexible Budgets, Direct-Cost Variances, and Management Control

Answer the following questions using the information below: Manash Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data: -What is the total sales-volume variance (E)?

Zinat Table Company manufactures tables for schools. The 2015 operating budget is based on sales of 40,000 units at $50 per table. Operating income is anticipated to be $120,000. Budgeted variable costs are $32 per unit, while fixed costs total $600,000. Actual income for 2015 was a surprising $354,000 on actual sales of 42,000 units at $52 each. Actual variable costs were $30 per unit and fixed costs totaled $570,000. Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances.