Crandell Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year.
Prepare a segment margin performance report for the pharmaceutical segment. Calculate a variance and a variance percentage for each line in the report. Round to the nearest hundredth for the variance percentages
| Sales | $1,436,400 |
| Variable Cost of Goods Sold | $192,600 |
| Variable Operating Expenses | $121,500 |
| Direct Fixed Manufacturing Overhead | $117,700 |
| Direct Fixed Operating Expenses | $16,160 |
| Common Fixed Expenses | $17,170 |
the budgeted figures
| Budgeted sales in units | 9000 |
| Budgeted average selling price per unit | $140 |
| Variable Cost of Goods Sold per unit | $20 |
| Variable Operating Expenses per unit | $15 |
| Direct Fixed Manufacturing Overhead (in total) | $107,000 |
| Direct Fixed Operating Expenses (in total)3 | $16,000 |
| Common Fixed Expenses Allocated to the Pharmaceutical Segment. . . . | $17,000 |
Darshita Changed status to publish August 30, 2020
| Performance Report | |||||||||||||
| Crandell – Pharmaceutical Segment | |||||||||||||
| For Fiscal Year Ending December 31 | |||||||||||||
| Actual | Bugeted | Variance | Variance % | ||||||||||
| Sales | $1,436,400 | $1,260,000 | $176,400 | F | 14 | % | |||||||
| Less Variable Expenses: | |||||||||||||
| Variable Cost of Goods Sold | 192,600 | 180,000 | 12,600 | U | 7 | % | |||||||
| Variable Operating Expenses | 121,500 | 135,000 | 13,500 | F | 10 | % | |||||||
| Contribution Margin | 1,122,300 | 945,000 | 177,300 | F | 18.76 | % | |||||||
| Less Direct Fixed Expenses: | |||||||||||||
| Fixed Manufacturing Overhead | 117,700 | 107,000 | 10,700 | U | 10 | % | |||||||
| Fixed Operating Expenses | 16,160 | 16,000 | 160 | U | 1 | % | |||||||
| Segment Margin | 988,440 | 822,000 | 166,440 | F | 20.25 | % | |||||||
| Less Common Fixed Expenses | ||||||
| allocated to the profit center: | 17,170 | 17,000 | 170 | U | 1 | % |
| Operating Income | $971,270 | $805,000 | $166,270 | F | 20.65 | % |
Darshita Changed status to publish August 30, 2020
