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tatiyna
3 years ago
15

Devin Company has the following data for their budget and actual performance. Actual Master budget Master Budget Variance Sales

150,298 155,842 ? Variable Costs 65,548 63,937 ? Fixed Costs 12,007 12,475 ? What is the operating income master budget variance? If it is an unfavorable variance use a negative sign immediately before your answer. Hint: Remember you'll need to calculate budgeted and actual operating income before you can determine the operating income master budget variance.
Business
1 answer:
snow_tiger [21]3 years ago
6 0

Answer:

The operating income master budget variance 6687      Unfav

Explanation:

Devin Company

Actual Vs. Budget Performance Report

For the year

                              Actual          Master       Master Budget  

                          Performance   budget         Variance

Sales                   150,298         155,842            5544    Unfavorable

Variable Costs     65,548          63,937             1611      Unfav

Fixed Costs         12,007           12,475              468       Fav

Operating Income 72743          79430             6687      Unfav

 

The operating income master budget variance is unfavorable because actual operating income is less than the budget operating income .

When the actual sales revenue is less than the budgeted revenues the variance is unfavorable.

When the actual costs are more than the budgeted costs the variance is unfavorable, and favorable when the actual costs are less than the budgeted costs.

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8 0
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A local ice-cream parlor has 100 customers in the "rush" hour between 5PM and 6PM (assume that the customers arrive according to
WITCHER [35]

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