The Vermont Company Has Requested a Performance Report That Reports

question 6

Essay

The Vermont Company has requested a performance report that reports both sales activity variances and flexible budget variances.The following table of information is provided: $\begin{array}{c}\begin{array}{|l|}\hline \text { Column (1)} \\ \hline \\\hline \\\hline \text {Number of units}\\\hline \\\hline \text {Sales}\\\hline \text {Less variable costs:}\\\hline \text {Materials}\\\hline \text {Labor}\\\hline \text {Overhead}\\\hline \text {Selling and admin.}\\\hline \text {Contrileution margin}\\\hline \text {Less fixed costs:}\\\hline \text {Mannactuing}\\\hline \text {Selling and admin.}\\\hline \text {Net income}\\\hline \end{array}\begin{array}{c|}\hline \text {(2)}\\\hline \text { Static } \\ \hline \text { Budget } \\ \hline 16,200 \\\hline \\\hline \$ 430,000\\\hline \\\hline 102,200 \\ \hline 86,000 \\ \hline 51,600 \\ \hline 34,400 \\ \hline \$ \quad 155,800 \\ \hline\\\hline 36,000 \\\hline 74,000 \\\hline\$ \quad 45,800 \\\hline\end{array}\begin{array}{c|}\hline \text {(3)}\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{c|}\hline \text {(4)}\\\hline \text { F/U}\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{c|}\hline \text {(5)}\\\hline \text { Flexible } \\ \hline \text { Budget } \\ \hline 18,000 \\\hline \\\hline \$ 450,000\\\hline \\\hline 108,000 \\ \hline90,000 \\ \hline 54,000 \\ \hline 36,000 \\ \hline \$ \quad 162,000 \\ \hline\\\hline 36,000 \\\hline 74,000 \\\hline\$ \quad 52,000 \\\hline \end{array}\begin{array}{c|}\hline \text {(6)}\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline \end{array}\begin{array}{c|}\hline \text {(7)}\\\hline \text { F/U}\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{c|}\hline \text {(8)}\\\hline \text { Actual } \\ \hline \text { Budget } \\ \hline 18,000 \\\hline \\\hline \$ 460,000\\\hline \\\hline 110,000 \\ \hline92,000 \\ \hline 50,000 \\ \hline 34,000 \\ \hline \$ \quad 174,000 \\ \hline\\\hline 34,000 \\\hline 76,000 \\\hline\$ \quad 64,000 \\\hline \end{array}\end{array}$
Required:
1)Compute and enter variances in columns 3 and 6.In column 3,enter the variance (difference)between column 2 and column 5;in column 4,label the variance as favorable (F)or unfavorable (U).In column 6,enter the variance between columns 5 and 8,and in column 7 indicate whether this variance is favorable or unfavorable.
2)Which column contains sales volume variances and which column contains flexible budget variances?
3)Comment on this company's performance.

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Definitions:

Benner's Practice Model

A framework developed by Patricia Benner that outlines the stages of clinical competence in nursing, emphasizing the importance of experience and intuition in clinical practice.

Clinical Competence

The blend of skills, knowledge, and behavior that enables a healthcare provider to deliver effective patient care.

Technical Skills

Specific abilities and knowledge used to perform practical tasks in various fields such as IT, engineering, or science.

Managed Care

A healthcare delivery system aimed at managing the quality and cost of medical services through contracted arrangements with providers.