The Managerial Accountant Prepared the Following Level-1 Analysis for the Halcyon

question 59

Multiple Choice

The managerial accountant prepared the following Level-1 analysis for The Halcyon Carpet renewal system company:

Required
Compute the static-budget variances of (a) units sold; (b) revenues; (c) direct materials; (d) direct manufacturing labor; (e) variable manufacturing overhead; (f) total variable costs; (g) contribution margin; (h) fixed costs; (i) operating income.

• A)(a)15,000, (b)$75,000,U, (c)$85,600, (d)$8,000,U, (e)$17,500, (f)$95,100,F, (g)$89,000, (h)$13,000,U, (i)$102,000,U.
• B)(a)17,000, (b)$80,000,F, (c)$92,300, (d)$6,000,U, (e)$12,600, (f)$98,100,U, (g)$93,000, (h)$15,000,F, (i)$112,000,F.
• C)(a)13,000, (b)$85,000,F, (c)$95,000, (d)$4,000,F, (e)$14,300, (f)$103,000,F, (g)$95,000, (h)$108,000,U, (i)$135,000,U
• D)(a)16,000 (b)$85,000,F, (c)$64,200, (d)$18,000,U, (e)$7,000, (f)$113,000,F, (g)$75,000, (h)$78,000,U, (i)$103,000,F.
• E)(a)9,000, (b)$54,000,F, (c)$68,000, (d)$12,000,U, (e)$23,000, (f)$110,500,U, (g)$63,000, (h)$92,000,F, (i)$100,000,U.

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Definitions:

Sales Call

A direct interaction, either in person or over the phone, between a salesperson and a potential customer aimed at promoting and selling a product or service.

Selling Process

A series of steps taken by a salesperson to lead a potential customer towards purchasing a product or service.

Value Analysis

A methodical approach to assessing a product or service to reduce costs without impairing quality or performance, aiming to improve value for the manufacturer and customer.

Customer Benefit Plan

A strategy designed by businesses to outline and communicate the advantages or value a customer will receive from their product or service.