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6 October, 12:56

Devin Company has the following data for their budget and actual performance. Actual Master budget Master Budget Variance Sales 150,298 155,842? Variable Costs 65,548 63,937? Fixed Costs 12,007 12,475? What is the operating income master budget variance? If it is an unfavorable variance use a negative sign immediately before your answer. Hint: Remember you'll need to calculate budgeted and actual operating income before you can determine the operating income master budget variance.

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  1. 6 October, 13:57
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    The operating income master budget variance 6687 Unfav

    Explanation:

    Devin Company

    Actual Vs. Budget Performance Report

    For the year

    Actual Master Master Budget

    Performance budget Variance

    Sales 150,298 155,842 5544 Unfavorable

    Variable Costs 65,548 63,937 1611 Unfav

    Fixed Costs 12,007 12,475 468 Fav

    Operating Income 72743 79430 6687 Unfav

    The operating income master budget variance is unfavorable because actual operating income is less than the budget operating income.

    When the actual sales revenue is less than the budgeted revenues the variance is unfavorable.

    When the actual costs are more than the budgeted costs the variance is unfavorable, and favorable when the actual costs are less than the budgeted costs.
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