Top Half Produces and Sells Two Types of T-Shirts-Fancy and Plain.The

question 12

Essay

Top Half produces and sells two types of t-shirts-Fancy and Plain.The company provides the following data:
$$\begin{array} { l l l } & \text { Budget } & \text { Actual } \\\text { Unit sales price - Fancy } & \$ 24 & \$ 25 \\\text { Unit sales price - Plain } & \$ 18 & \$ 17 \\\text { Unit sales - Fancy } & 1,300 & 1,250 \\\text { Unit sales - Plain } & 9 0 0 &8 7 5 \end{array}$$ Compute the flexible budget variance for Fancy t-shirts for sales revenue.

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Definitions:

General Journal

A primary accounting record used to document all business transactions in chronological order.

Indirect Materials

Components used in the manufacturing process that are not directly traceable to a specific product, like lubricants for machines.

Molding Department

A specific division within a manufacturing facility where molding processes—shaping materials into products—are carried out.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold to consumers.