Answer:
Total Variance 70,600 fav.
Explanation:
Xion Co.
Budget Analysis
<u>Acutal Budgeted Variances</u>
No of Units 11900 11900
Sales Price Per unit $ 83.61 $ 81
Sales Price $ 995,000 963,900 31,100 fav
Variable Cost Per unit 30.42 $ 35
<u>Variable Costs $ 362,000 416500 54,500 fav</u>
<u>Contribution Margin $ 633,000 547,400 85,600 fav</u>
<u>Fixed Costs 296,000 $281,000 15,000 unfav</u>
<u>Gross Profit 337,000 266400 70,600 fav</u>
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We multiply the individual budgeted costs to the number of units to find the total budgeted costs. When the actual Revenues are greater than the budgeted revenues they are favorable. Similarly when the budgeted costs are greater than the actual costs they are also favorable.