The Accountant for Dalton Company Prepared the Following Performance Report

question 115

Essay

The accountant for Dalton Company prepared the following performance report: $\begin{array}{l}\begin{array}{|l|}\hline \\\hline \text { Number of units }\\\hline\\\hline \text { Sales } \\\hline \text { Less vanable costs: } \\\hline \text { Materials } \\\hline \text { Labor } \\\hline \text { Overhead } \\\hline \text { Selling and adnin. } \\\hline \text { Contribution margin } \\\hline \text { Less fixed costs: } \\\hline \text { Manufacturing } \\\hline \text { Selling and adnin. } \\\hline \text { Net income }\\\hline\end{array}\begin{array}{l|}\hline \text {Static Budget}\\\hline 4.000 \\\hline\\\hline \$ 200,000\\\hline\\\hline 72,000 \\ \hline 50,000 \\ \hline 16,000 \\ \hline \underline { 39,000} \\ \hline \$ 23,000 \\ \hline \\\hline 15,000 \\ \hline \underline { 6,500 }\\ \hline \$ 1,500 \\ \hline\end{array}\begin{array}{l|}\hline \text {Flexible Budget}\\\hline 4,500 \\\hline\\\hline \$ 225,00\\\hline\\\hline 81,000 \\\hline 56,250 \\\hline 18,000 \\\hline \underline {43,875 } \\\hline \$ 25,875 \\\hline\\\hline 15,000 \\\hline \underline {6,500 }\\\hline \$ 4,375 \\\hline\end{array}\begin{array}{l|}\hline \text {Actual Results}\\\hline 4,500\\\hline\\\hline 223,000\\\hline\\\hline 81,600 \\\hline 54,000 \\\hline 17,800 \\\hline 47,700 \\\hline 21,900 \\\hline\\\hline 13,350 \\\hline 6,600 \\\hline 1,950 \\\hline \end{array}\end{array}$ Required:
1)Compute the sales volume variance in units.
2)Compute the percentage increase in revenue generated by the increase in activity.
3)Compute the percentage increase in budgeted profitability that resulted from the increase in revenue.Explain this result.
4)How would differences between planned and actual volume impact companies that use a cost-plus pricing strategy?

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Definitions:

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Digital version of a patient’s medical history, maintained by the provider over time, that includes all the key administrative clinical data relevant to that person's care under a particular provider.

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A meeting conducted over the telephone or through video conferencing technology that allows participants in different locations to communicate in real-time.

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Computer programs designed to detect and identify problems within software or hardware systems, often used in troubleshooting and repairs.

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Digital systems that healthcare professionals use to store, manage, and access patients' health records.