Ryota Products has an industrial mower division that operates as a profit center.Below is a partially completed responsibility report for the first quarter. \[\begin{array}{l}
\text { Responsibility Report }\
\begin{array} { | c | c | c | c | c | c | c | }
\hline & \text { Actual } & \begin{array} { c }
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array} { c }
\text { Flexible } \
\text { Budget } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c }
\text { Percentage } \
\text { Variance }
\end{array} & \text { U/F } \
\hline \begin{array} { c }
\text { Sales } \
\text { Revenue }
\end{array} & \$ 688,000 & \$ 703,000 & & & & \
\hline \begin{array} { c }
\text { Variable } \
\text { Expenses }
\end{array} & \underline { 309,000 } & \underline { 320,000 } & & & & \
\hline \begin{array} { c }
\text { Contribution } \
\text { Margin }
\end{array} & 379,000 & 383,000 & & & & \
\hline \begin{array} { c }
\text { Traceable } \
\text { Fixed }
\end{array} & & & & & & \
\text { Expenses } & \underline { 371,000 } & \underline { 368,000 } & & & & \
\hline \begin{array} { c }
\text { Division } \
\text { Margin }
\end{array} & \underline { \$ 8000 } & \underline { \$ 15,000 } & & & & \
\hline
\end{array}
\end{array}\]
Compute the percentage variance for the flexible budget variance for traceable fixed expenses.(Round your answer to two decimal places.)
A)0.82% F
B)0.82% U
C)1.04% U
D)1.04% F

Question

Ryota Products has an industrial mower division that operates as a profit center.Below is a partially completed responsibility report for the first quarter. \[\begin{array}{l}
\text { Responsibility Report }\
\begin{array} { | c | c | c | c | c | c | c | } 
\hline & \text { Actual } & \begin{array} { c } 
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array} { c } 
\text { Flexible } \
\text { Budget } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c } 
\text { Percentage } \
\text { Variance }
\end{array} & \text { U/F } \
\hline \begin{array} { c } 
\text { Sales } \
\text { Revenue }
\end{array} & \$ 688,000 & \$ 703,000 & & & & \
\hline \begin{array} { c } 
\text { Variable } \
\text { Expenses }
\end{array} & \underline { 309,000 } & \underline { 320,000 } & & & & \
\hline \begin{array} { c } 
\text { Contribution } \
\text { Margin }
\end{array} & 379,000 & 383,000 & & & & \
\hline \begin{array} { c } 
\text { Traceable } \
\text { Fixed }
\end{array} & & & & & & \
\text { Expenses } & \underline { 371,000 } & \underline { 368,000 } & & & & \
\hline \begin{array} { c } 
\text { Division } \
\text { Margin }
\end{array} & \underline { \$ 8000 } & \underline { \$ 15,000 } & & & & \
\hline
\end{array}
\end{array}\]
Compute the percentage variance for the flexible budget variance for traceable fixed expenses.(Round your answer to two decimal places.)
A)0.82% F
B)0.82% U
C)1.04% U
D)1.04% F

Quizplus · Accepted Answer

To calculate the flexible budget variance for traceable fixed expenses, we need to subtract the actual traceable fixed expenses from the flexible budget traceable fixed expenses. This gives us a variance of $361,000. To calculate the percentage variance, we divide the variance by the flexible budget traceable fixed expenses and multiply by 100. This gives us (361,000 / 44,202,000) * 100 = 0.82% U. Therefore, the answer is B) 0.82% U.

Ryota Products Has an Industrial Mower Division That Operates as a Profit