3)Corp is preparing the flexible budget. The following information pertains to the month of September. Static Budget 15,000 Sales volume (in units) Sales revenues Variable costs Contribution margin Actual Results 12,000 $600,000 307,200 $ 292,800 $ $ $ Flexible Budget Fixed costs 274,800 Operating profit $ 18,000 $ The flexible-budget variance for variable costs is how much $750,000 360,000 390,000 270,000 $ 120,000

3)Corp is preparing the flexible budget. The following information pertains to the month of September. Static Budget 15,000 Sales volume (in units) Sales revenues Variable costs Contribution margin Actual Results 12,000 $600,000 307,200 $ 292,800 $ $ $ Flexible Budget Fixed costs 274,800 Operating profit $ 18,000 $ The flexible-budget variance for variable costs is how much $750,000 360,000 390,000 270,000 $ 120,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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8.
James Manufacturing had the following information available for July: Actual Results 13,600 ? Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin What was James's master budget sales revenue? Multiple Choice $162,100 $187,000 $163,200 $ 93,750 ? $ 53,200 Flexible Budget Variance $ 13,600 F $ 3,550 U ? Flexible Budget ? ? $ 97,000 ? ? Sales Activity Variance 4,700 U ? $ 4,300 F $ 6,300 U Master Budget ? ? $ 142,800 $ 30,600 ?
Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,570,000 $ Cost of Goods Sold Direct Material $900,000 $ $ Direct Labor 1,100,000 Variable Manufacturing Overhead 240,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,310,000 $ $4 Gross Profit $1,260,000 $4 Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 940,000 Income Before Taxes $220,000 Taxes 66,000 Net Income/Lss $154,000 $
Robinson Company has two products, A and B. Robinson's budget for August follows: Master Budget Sales Variable cost Contribution margin Fixed cost Operating income Selling price Sales Variable cost Contribution margin Fixed cost On September 1, these operating results for August were reported: Operating Results Operating income Units sold Product A $ 330,000 180,000 $ 150,000 120,000 $ 30,000 $ 110 a. Flexible-budget variance b. Sales volume variance c. Sales quantity variance d. Sales mix variance Product B $ 450,000 270,000 $ 180,000 90,000 $ 90,000 $ 50 Product A $ 112,500 68,750 $ 43,750 120,000 $ (76,250) 1,250 Required: 1. For each product, determine the following variances measured in dollars of contribution margin: Product B $ 585,000 393,750 $ 191,250 90,000 $ 101,250 11,250 Product A Product B
The following information is given for one of a company's variable expenses: • The activity variance is $850 favorable. The actual amount of the expense is $8,300. The planned level of activity in the master budget is 1,000 hours. The actual level of activity is 900 hours. The budget rate per hour for this expense must be: Multiple Choice $7.80 per hour. $9.50 per hour. $8.50 per hour. $8.80 per hour.
Subject: accounting
) Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales 18% of sales $6,000 per month plus 12% of sales $30,000 per month $12,000 per month plus 20% of sales $31,000 per month Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.) Cloud Productivity Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending March 31 $400000 Total sales Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost Fixed cost: Miscellaneous administrative expense 56,000 Total fixed cost $500000 $600000 70,000 $ Fixed cost: Miscellaneous…
Problem 2 Meals Company is a startup company producing and delivering boxed meals to tailgate parties. The company operates four months, September through December, during a fiscal year. Assume there are zero costs during the ensuing eight months. The company owner has forecasted the following sales and financial data for the upcoming fiscal year: Meal boxes sold 20,000 total boxes; the sales forecast for the meals sold by month follows: Forecast 5,000 5,000 8,000 2,000 September October November Meal box sales price Food cost Wages December $5.00 $2.00 per box Food preparer Owner $10 per hour; 0.05 hours per box $20,000 salary $1,000 + $0.10 per box $3.50 per gallon 20 miles per gallon 400 total miles driven delivering meals $4,000 $6,000 Utilities Fuel Facilities Miscellaneous Required (a) Prepare an annual budget for the fiscal year Annual Budget $ Revenue Expenses Total Expenses NOI 7
The following static budget is provided: Per unit $70 Total $1,050,000 Sales Less variable costs: Manufacturing costs 30 450,000 Selling and administrative 20 300,000 costs $20 $300,000 Contribution margin Less fixed costs: 76,000 Manufacturing costs Selling and administrative 136,000 costs Total fixed costs 212,000 $ 88,000 Net income What will be the overall volume variance if 18,000 units are produced and sold? Multiple Choice $148,000 F $0 F $360,000 U $60,000 F
Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 48% $364,800 109,440 $ 255,360 100% 30% 70% Fragrant 20% $ 152,000 121,600 $ 30,400 Product 100% 80% 20% Loonzain 32% $ 243,200 133,760 $ 109,440 100% 55% 45% Total Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. 100% $ 760,000 364,800 395,200 224,640 $ 170,560 Dollar sales to break-even = Fixed expenses - CM ratio = $224,640 ÷ 0.52 = $432,000 As shown by these data, net operating income is budgeted at $170,560 for the month and the estimated break-even sales is $432,000. Assume that actual sales for the month total $760,000 as planned; however, actual sales by product are: White, $243,200; Fragrant, $304,000; and Loonzain,…
Matthew works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $97 and $192 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 760 pairs of clogs and 240 pairs of boots. The variable cost per pair was $52 for clogs and $78 for boots. At the end of the year, Matthew evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. . . . (a) Actual sales volume: clogs, 869; boots, 231. Actual selling price: clogs, $108 per pair; boots, $181 per pair. Actual per-unit variable costs for each product were the same as budgeted. Your answer is correct.
The following is monthly budgeted cost and activity information for two activities in the purchasing department of X Company: Activity Variable Costs Fixed Costs Cost Driver Supplier relations $9,500 $16,900 380 suppliers Invoicing $11,700 $26,300 780 invoices In November, actual costs and activity were as follows: Activity Total Costs Driver Amount Supplier relations $28,555 430 suppliers Invoicing $38,115 806 invoices What was the flexible budget variance for the invoicing activity for November (assume that favorable variances are positive numbers and unfavorable variances are negative numbers)? A: $-26,415 B: $-26,025 C: $-11,815 D: $-115 E: $0 OF: $275