Cost and Variance Analysis for Desklib

Answer A:
Particulars
Volume Budget
Profit Flexible Budget Volum
e
Actual
Results
Volume Rate Amount
Sales Revenue 1680 $604,800.00 2106 $360.0
0 $758,160.00 2106 $789,750.00
Direct costs
-Certificates 1680 $
33,600.00 2106 $
20.00
$
42,120.00 2106 $
60,232.00
-Training Booklets 1680 $
20,160.00 2106 $
12.00
$
25,272.00 2106 $
25,009.00
-Evaluation
Materials 1680 $
13,440.00 2106 $
8.00
$
16,848.00 2106 $
21,313.00
-T shirt 1680 $
25,200.00 2106 $
15.00
$
31,590.00 2106 $
49,280.00
-Instructor labor 7560 $
211,680.00 9477 $
28.00
$
265,356.00 9828 $
294,840.00
Variable
Overhead
-Petrol 9800 $
8,820.00 12285 $
0.90
$
11,056.50
$
14,040.00
-Advertising 280 $
16,800.00 351 $
60.00
$
21,060.00
$
16,848.00
-Indirect Materials 92400 $
18,480.00 115830 $
0.20
$
23,166.00
$
38,958.00
-Administration
cost 9800 $
38,556.00 12285 $
3.93
$
48,332.70
$
33,415.00
Total variable
costs $386,736.00 $484,801.20 $553,935.00
Total contribution
margin $218,064.00 ? ? $273,358.80 $235,815.00
Fixed Overhead
-Advertising $
12,000.00
$
12,000.00
$
10,000.00
-Rent $
9,000.00
$
9,000.00
$
18,000.00
-Insurance $
11,000.00
$
11,000.00
$
13,000.00
-Depreciation $
20,000.00
$
20,000.00
$
15,000.00
-Other $
10,000.00
$
10,000.00
$
9,000.00
Total fixed costs $ 62,000.00 $ 62,000.00 $ 65,000.00
Net Profit $211,358.80 $170,815.00