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Chapter 7 Accounting Variance Analysis

This document analyzes revenue and cost variances for four products (E, F, G, H). It finds an unfavorable total net revenue variance of $336 due to unfavorable price, mix, and volume variances. Variable and fixed cost variances were also unfavorable, contributing to the overall unfavorable variance.

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Yna Mendez
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151 views4 pages

Chapter 7 Accounting Variance Analysis

This document analyzes revenue and cost variances for four products (E, F, G, H). It finds an unfavorable total net revenue variance of $336 due to unfavorable price, mix, and volume variances. Variable and fixed cost variances were also unfavorable, contributing to the overall unfavorable variance.

Uploaded by

Yna Mendez
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
  • Detailed Variance Calculations
  • Analysis of Variance

Analysis of Variance - Favorable/(Unfavorable) Revenue Variances: Price Mix Volume Net revenue variances Variable-cost variances Material Labor

Variable overhead Net variable-cost variances Fixed-cost variances Selling expense Administrative expense Net fixed-cost variances Variance Selling Price Variances E 1000 0.13 0.15 -0.02 -20

-90 -18 -118 -226 210 80 -210 80 40 -10 30 -336 Unfavorable Variance

Actual volume (units) Actual price per unit Budget price per unit Actual over/(under) budget per unit Favorable/(unfavorable) price variance Mix Variance Product E F G H Total Volume Variance Product E F G H Total

Product F G 1000 4000 0.22 0.22 0.2 0.25 0.02 -0.03 20 -120

Budgeted Proportion 0.1 0.2 0.3 0.4

Budgeted Mix at Actual Volume 900 1800 2700 3600 9000

Budgeted Mix at Actual Volume 900 1800 2700 3600 9000

Budgeted Volume 1000 2000 3000 4000 10000

Difference -100 -200 -300 -400 -1000

Variable Cost Variances Product E (1000) F (1000) G (4000) H (3000) 40 50 240 240 Total 570 Actual 360

Material

Labor Overhead (variable) Total Fixed-Cost Variances Selling expense Administrative expense Total

20 20 80

20 30 100

120 120 480

120 150 510

280 320 1170

200 530 1090

Actual 290 110 400

Budget Variances 250 40 120 -10 370 30

Unfavorable Variance

H 3000 0.31 0.3 0.01 30

Total

-90

Actual Sales 1000 1000 4000 3000 9000

Difference -100 800 -1300 600 0

Unit Contribution 0.07 0.1 0.13 0.13 0.43

Variance -7 80 -169 78 -18

Unit Contribution 0.07 0.1 0.13 0.13 0.43

Volume Variance -7 -20 -39 -52 -118

Variance 210

80 -210 80

Analysis of Variance - Favorable/(Unfavorable) -90 -18 -118 -226 210 80 -210 80 40 -10 30 -336 Unfavorable Variance Selling P
Labor 20 20 120 120 280 200 Overhead (variable) 20 30 120 150 320 530 Total 80 100 480 510 1170 1090 Fixed-Cost Variances Act
Unfavorable Variance H Total 3000 0.31 0.3 0.01 30 -90 Actual Sales Difference Unit Contribution Variance 1000 -100 0.07 -7 1
80 -210 80

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