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# 4 questions (1) A full revenue variance analysis, which would include the following: a. All revenue variances using gross revenues b. All applicable variances for variable selling costs c. All...

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4 questions
(1) A full revenue variance analysis, which would include the following:
a. All revenue variances using gross revenues
b. All applicable variances for variable selling costs
c. All applicable variances for fixed selling costs
(2) A full cost variance analysis, which would include, where applicable, the spending, efficiency, and activity variances for each cost category, including:
a. Materials
b. Labor
(3) A calculation of the bonuses for each of the three managers based on the variances calculated and incentive plan details provided earlier.
(4) A XXXXXXXXXXword statement regarding your opinion of the incentive plan, the outcomes, and potential improvements . . . basically, advice that you might provide Toni regarding the situation, based on your analysis.
Answered Same Day Jun 30, 2021

## Solution

Sweety answered on Jul 02 2021
1. Revenue Variance Analysis
1 (a). REVENUE VARIANCE ANALYSIS
Particulars    ACTUAL            BUDGETED            Sales Variance    Sale Price / spending
Variance    Sale Volume /efficiency
Variance
Unit Sold    Price per Unit    Total(in \$)    Unit Sold    Price per Unit    Total(in \$)
Retail    188,898.00    55.00    10,389,390.00    215,000    56.00    12,040,000.00    (1,650,610.00)    (188,898.00)    (1,461,712.00)
Wholesale    49,710.00    38.00    1,888,980.00    80,000    37.00    2,960,000.00    (1,071,020.00)    49,710.00    (1,120,730.00)
Amazon    92,792.00    49.00    4,546,808.00    0    0    0    4,546,808.00    4,546,808.00    - 0
TOTAL    331,400.00    142.00    16,825,178.00    295,000.00    93.00    15,000,000.00    1,825,178.00    4,407,620.00    (2,582,442.00)
1 (b) & 1(c). APPLICABLE VARIANCE OF VARIABLE SELLING EXPENSE & FIXED SELLING EXPENSE.
Particulars    F.Y. 1999        F.Y. 2000        F.Y. 2000        Total
Variance
Actual        Actual        Flexible Budget
Rate p.u.    Total    Rate p.u.    Total    Rate p.u.    Total
Unit Sold        271,971        331,400        295,000
Amount (in \$)        Amount (in \$)        Amount (in \$)
Variable Selling Expenses (\$)
Packing and shipping    4.33    1,176,929.00    4.80    1,589,900.00    4.33    1,277,350.00    (312,550.00)
Commissions    0.92    249,330.00    0.38    125,789.00    0.92    271,400.00    145,611.00
Marketing materials    0.28    75,956.00    0.50    164,090.00    0.28    82,600.00    (81,490.00)
Total variable selling exp    5.52    1,502,215.00    5.67    1,879,779.00    5.53    1,631,350.00    (248,429.00)
Fixed Selling Expenses (\$)
Salaries        2,726,091.00        3,274,871.00        2,726,091.00    (548,780.00)
Advertising and promotion        2,440,501.00        2,590,944.00        2,440,501.00    (150,443.00)
Total fixed selling exp        5,166,592.00        5,865,815.00        5,166,592.00    (699,223.00)
2.FULL COST VARIANCE
2. FULL COST VARIANCE ANALYSIS
The table below represnet Variance analysis of material cost , labor cost & variable overhead .
Particulars     Input
Unit    Standard input used per unit sold
standard price(dollar) per Input used
standard price(dollar) per unit produced
Master Budget        Actual                 Standard cost                    Total cost Variance
Spending
Price
variance    Efficiency
yield
Variance
Budgeted unit
sold    Budgeted cost
(in \$)    Actual unit
sold    Actual Input
used    Price pe
input used    Actual Cost
(in \$)    Actual unit sold    Standard input used per unit sold
Total Input used based on standard input used per unit sold & actual unit sold    Standard
price
per input    Total standard cost (in \$)
Unit Sold of Bear    - 0    - 0    - 0        295,000.00    - 0    331,400.00        - 0    - 0    331,400.00    - 0        - 0    - 0    - 0    - 0    - 0
Direct materials
Actrylic pile fa
ic    bolts    0.03    36.00    0.96        283,872.60        8,345.00    34.56    288,403.20        0.03    8,858.32    36.00    318,899.59    30,496.39    12,016.80    18,479.59
Acrylic eyes    eyes    2.00    0.21    0.42        123,900.00        661,248.00    0.21    138,862.08        2.00    662,800.00    0.21    139,188.00    325.92    - 0    325.92
Plastic joints    joints    5.00    0.15    0.75        221,250.00        1,937,023.00    0.15    288,035.32        5.00    1,657,000.00    0.15    248,550.00    (39,485.32)    2,518.13    (42,003.45)
Polyester fiber filling    pounds    0.90    1.61    1.45        427,455.00        354,164.00    1.51    534,787.64        0.90    298,260.00    1.61    480,198.60    (54,589.04)    35,416.40    (90,005.44)
Label    label    1.00    0.06    0.06        17,700.00        328,447.00    0.06    19,706.82        1.00    331,400.00    0.06    19,884.00    177.18    - 0    177.18
Designer...
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