Homework SourseEX 522 service company The actual and planned data for Under
EX 5-22 service company The actual and planned data for Underwater University for th Variable costing income statement and contribution margin analysis for a OBJ.5,6 e Fall term 2016 were as follows: Planned Enrollment Tuition per credit hour Credit hours Registration, records, and marketing cost per enrolled student Instructional costs per credit hour Depreciation on classrooms and equipment 4,125 $135 43,200 $275 $60 $825,600 $825,600 Actual 4,500 $120 60,450 $275 $64 egistration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. a. Prepare a variable cos ting income statement showing the contribution margin and income from operations for the Fall 2016 term. b. Prepare a contribution margin analysis report comparing planned with actual perfor- mance for the Fall 2016 term. 
Solution
Statement showing variable costing Particulars Actual Tution per credit hour 120.00 Credit hours 60,450.00 Revenue 7,254,000.00 Variable Costs: Reg, records and marketing cost 1,237,500.00 Instruction costs 3,868,800.00 Variable costs 5,106,300.00 Contribution 2,147,700.00 Fixed Costs: Depreciation 825,600.00 Fixed Costs 825,600.00 Income 1,322,100.00 Contribution Margin Analysis Particulars Actual Planned Difference Comments Tution per credit hour 120.00 135.00 (15.00) Unfavourable Credit hours 60,450.00 43,200.00 17,250.00 Favourable Revenue 7,254,000.00 5,832,000.00 1,422,000.00 Favourable Variable Costs: Reg, records and marketing cost 1,237,500.00 1,134,375.00 103,125.00 No Change as No of student have increased that’s why there is diff in total but per student is same Instruction costs 3,868,800.00 2,592,000.00 1,276,800.00 Unfavourable Variable costs 5,106,300.00 3,726,375.00 1,379,925.00 Contribution 2,147,700.00 2,105,625.00 42,075.00 Favourable