bradly compa 596438
The Bradley Company has just completed its first year of operations. A condensed income statement follows, showing actual and standard amounts and the variances:
The president of Bradley Company has asked you as controller for the following data:
- a. How much of the variance in income was due to the fact that we sold less than expected of Product B and more of Product A?
- b. What would have happened to income if we had produced the number of units expected?
- c. What would have happened to the total gross margin variance if we had sold the number of units of both A and B that we expected to sell, but at the actual selling prices per unit?
- d. What is the variance due to the fact that actual selling prices were less than expected? (Product A sold for $5.50 per unit.)