the Richfield company produces engine parts for a car manufa

T-Mobile 10:49 PM ? mathx1.com ?+ ] Course Home O Do Homework-cristina salazar ACCT 3324-90L Summer 2018 UTRGV cristina salazar&I; 6/25/18 10.49 PM Homework: Chapter 7 Homework Score: 0 of 1 pt 1 of 5 (0 HW Score: 09.00e 5 pts E7-24 (similar to) Question Heip A new accountand intern at Richfield has accidentally deieted the calculations on the EEB (Ciok the lcon to view the data ) Requirement 1. Calculate althe required variances. (if your work is accurate, you willfind that the tola statio-budget variance is so.) Begin with the flexible budget columns, then the sales volume variance each variance as favorable (F) or unfavoratio (U)·(For vanances win sto the approprate fed, \"the vanance Flexible-Budget balance, make sure to enter \"0 is zero, do not select a label. Round your answers t the nearest whole dollar) Actual Results Flexible 106,000 Units sold evenues (sales riable costs Data Table tribution ma d costs Performance Report ing incom Year Ended December 31, 2017 Actual Flexible-Budget Flexible Sales Volume Static Results Variances 98.000 106,000 Units sold S 352.800 Revenues (sales)683,700 450,000 233,700 206.500 27.200 215,600 Variable costs 137.200 110,000 Fixed costs Operating income $ 27 200 Print Done

Solution

Solution 1:

Richfield Company
Performance Report - For year ended December 31, 2017
Particulars	Actual results	Flexible Budget Variance	Flexible Budget	Sales Volume Variance	Static Budget
Units Sold	106000			106000			98000
Revenues (Sales)	$683,700.00	$302,100.00	F	$381,600.00	$28,800.00	F	$352,800.00
Variable cost	$450,000.00	$216,800.00	U	$233,200.00	$17,600.00	U	$215,600.00
Contribution margin	$233,700.00	$85,300.00	F	$148,400.00	$11,200.00	F	$137,200.00
Fixed costs	$206,500.00	-$96,500.00	U	$110,000.00	$0.00	None	$110,000.00
Operating Income	$27,200.00	$11,200.00	U	$38,400.00	$11,200.00	F	$27,200.00