Unified Products Inc Required:
A

question 95

Essay

Unified Products Inc.makes and sells a unique product.At the beginning of the current year,the company had anticipated selling 10 000 of these units;however,11 000 units were actually produced and sold.Below is the company's static budget as well as actual results for the year:
$\begin{array}{c}\begin{array}{lll}\\\\\text {Sales revenue}\\\text {Variable costs:}\\\text {Direct materials}\\\text {Direct labour}\\\text {Overhead}\\\text {Contribution margin}\\\text {Fixed costs}\\\text {Net income}\end{array}\begin{array}{lll}\text {(static budget) }&\text {(actual results)}\\\underline{\text { at 10000 units}}& \underline{\text {at 11000 units}}\\\$ 800000 & \$ 902000 \\\\90000 & 103400 \\100000 & 121000 \\50000 & 60500 \\\hline 560000 & 617100 \\200000 & 210000 \\\hline \$ 360000 & \$ 407100\end{array}\end{array}$

Required:
A. Prepare a flexible budget for the year.
B. Calculate the flexible budget variance for the year. Indicate whether it is favourable or unfavourable.
C. Calculate the sales price variance for the year. Indicate whether it is favourable or unfavourable

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Definitions:

Hidden Area

Information about oneself that is not known to oneself but is known to others, often revealed through feedback.

Contact Hypothesis

A theory that proposes that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Frequency of Contact

The rate at which individuals or groups communicate within an organizational setting, impacting relationship strength and information flow.