Performance Report, January (000s) Actual 875 583 292 75 217 55 30 132 Budget 600 370 230 75 155 50 25 80

Sales VC of sales Contribution Fixed Overhead Gross Profit Selling expense Administration expense Profit Before Tax Budget For January
A unit 100 total

B unit

100 total

Sales Standard VC Material Labor Overhead Total VC Contribution Fixed Cost Fixed Overhead Sellling exp Admin exp Total FC Profit Before Tax

1 0.5 0.1 0.2 0.8 0.2

100 50 10 20 80 20 25 17 8 50 -30

2 0.7 0.15 0.25 1.1 0.9

200 70 15 25 110 90 25 17 8 50 40

Selling Price Variance A Actual Volume Actual Price per unit Budget Price per unit Actual-Budget per unit 100 0.9 1 -0.1

(actual price Standard pric

B 200 2.05 2 0.05

Favorable/unfavorable Price Variance -Mix and Volume Variance =

Product Actual Volume Budgeted Volume

-10

10

(Actual Volume-Budgeted Volume)

Difference Contribution

A B C Total

100 200 150 450

100 100 100 300

0 100 50

0.2 0.9 1.2

Sales Volume Variance =

Budgeted Mix at Actual Volume Budgeted Volume

[(total actual volume of sale * Budgeted prop

Product

Difference

Contribution

A B C Total Mix Variance =

150 150 150 450

100 100 100 300

50 50 50 150

0.2 0.9 1.2

[(total actual volume of sales - (Actual volum

Budgeted Mix at Actual Volume

Product

Budgeted Proportion

Actual Sales

Difference

A B C Total

1/3 1/3 1/3

150 150 150 450

100 200 150 450

-50 50 0 0

Fixed Cost Variance Fixed Overhead Selling expense Administration expense Total Actual 75 55 30 160 Budget 75 50 25 150

Variable Manufacturing Cost Variance A

per unit cost actual Volume 0.5 0.1 0.2 150 150 150 per unit cost

Material Labor Overhead (Variable) Total

75 15 30 120

0.7 0.15 0.25

Industry Volume and Market Share Variance, A. Budgeted Sales Volume A Estimated Industry Volume(units) Budgeted Market Share Budgeted Vomume(units) B. Actual Market Share A Actual Industry Volume Actual Sales Actual Market Share C. Variance Due to Market Share A 1 2 3=(1-2) 4 5=3*4 Actual Sales Budgeted Share at actual Volume Difference Budgeted Unit Contribution Variance Due to Market Share 100 120 -20 0.2 -4 B 200 200 0 0.9 0 1000 100 10% B 1000 200 20% 833 12% 100 B 500 20% 100

D. Variance Due to Industry Volume A B

1 2 3=(1-2) 4 5=3*4 6 7

Actual Industry Volume Estimated Industry Volume(units) Difference Budgeted Market Share Budgeted Unit Contribution Total

1000 833 167 12% 20 0.2 4

1000 500 500 20% 100 0.9 90

Variance Analysis
difference 275 213 62 0 62 5 5 52

C unit

100 total

Total Budget

3 1.5 0.1 0.2 1.8 1.2

300 150 10 20 180 120 25 17 8 50 70

600 270 35 65 370 230 75 51 24 150 80

price Standard price) * actual volume

C 150 2.5 3 -0.5 Total

-75

-75

olume-Budgeted Volume) * Budgeted Unit Contribution

Variance

ontribution

0 90 60 150

me of sale * Budgeted proportion) - (Budgeted sales volume)] * Budgeted unit contribution

Volume Variance

ontribution

10 45 60 115

me of sales - (Actual volume of sales* Budgeted proportion)] * Budgeted unit contribution

Contribution

Volume Variance

0.2 0.9 1.2

-10 45 0 35

if the Business unit sales "richer " mix the actua

variances 0 5 5 10

B
actual Volume 120 120 120 per unit cost

C
actual Volume 200 200 200

Total 300 20 40 360 459 53 100 612

Actual 470 65 90 625

84 18 30 132

1.5 0.1 0.2

C 1667 6% 100

Total 3000 10% 300

C 1000 150 15%

Total 3000 450 15%

C 150 60 90 1.2 108

Total 450 380 70 104

Total

1000 1667 -667 6% -40 1.2 -48

3000 3000 0 10%

46

icher " mix the actual profit will be higher than budgeted

Variance -11 -12 10 -13