(SOLVED) Cottesloe Boogie manufactures boogie boards The company s performance report for


Question Description:

$20

Cottesloe Boogie manufactures boogie boards. The company’s performance report for November is as follows:
____________________________ Actual ______________________ Budget
Boogie boards sold ……………… 6 000 ………………………………. 8 000
Variable costs ………………….. 145 000 ……………………………. $300 00
Contribution margin ……………. 95 000 …………………………….. 180 000
Fixed costs ……………………… 84 000 ………………………………. 80 000
Operating profit ……………… $ 11 000 ……………………………. $ 40 000
The company uses a flexible budget to analyse its performance and to measure the effect on operating profit of the various factors affecting the difference between budgeted and actual operating profit.
Required:
Calculate the sales price and sales volume variance for November, and indicate whether each is fovourable or unfavourable?

Answer

$20