The following data are for the month of December for the Aggressive Company, a maker of boots:
Master budget data: Sales of 9,000 pairs at $90 per pair; variable costs of
$69 per pair; total fixed costs of $108,000.
Actual results: Sales of 9,600 pairs at $87 per pair; variable costs of
$72 per pair; total fixed costs of $109,200.
Required:
a. What was the December master budget operating income?
b. What were the total sales- activity and flexible- budget variances for the month of December?

Question

Quizplus · Accepted Answer

The Answer of The following data are for the month of December for the Aggressive Company, a maker of boots:
Master budget data: Sales of 9,000 pairs at $90 per pair; variable costs of
$69 per pair; total fixed costs of $108,000.
Actual results: Sales of 9,600 pairs at $87 per pair; variable costs of
$72 per pair; total fixed costs of $109,200.
Required:
a. What was the December master budget operating income?
b. What were the total sales- activity and flexible- budget variances for the month of December?

The Following Data Are for the Month of December for the Aggressive