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.

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.