7-24. FLEXIBLE BUDGET, WORKING BACKWARD. The Edinburgh
Company produces engine parts for car manufacturers. A new
accountant intern at Edinburgh has accidentally deleted the company's
variance analysis calculations for the year ended December 31, 2020. The
following table is what remains of the data.
Performance Report, Year Ended December 31, 2020
Flexible-
Actual
Budget
Flexible
Sales-Volume
Results
Variances Budget
Variances
Static Budget
Units sold
101,000
93,000
Revenues
$681,750
$334,800
Variable costs
404,000
167,400
Contribution margin
277,750
167,400
Fixed costs
220,350
110,000
Operating income
$ 57,400
$ 57,400
Required
1. Calculate all the variances in the preceding table. (If your work is
accurate, you will find that the total static-budget variance is $0.)
2. What are the actual and budgeted selling prices? What are the
actual and budgeted variable costs per unit?