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Variances

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Please consider the following data for the Monarch Escrow Company:?

Master Budget Data:
Sales, 2,500 clients at $35 each.
Variable Costs, $25 per client.
Total Fixed Costs - $15,000.

Actual Results at Actual Prices:
Sales, 3,000 clients at $36 per clients.
Total Variable Costs - $80,000.
Total Fixed Costs - $15,750.

Calculate:
a) The Actual (Net) Income
b) The Flexible Budget Income for the Actual Sales Activity
c) The Total Master Budget Variances
d) The Total Flexible Budget Variances
e) The Total Sales Activity Variances.

Please make sure to identify the variances as Favorable or Unfavorable.

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Solution Summary

Calculates net income, flexible budget income for the actual sales activity, total master budget variances, total flexible budget variances, total sales activity variances.

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