Magnet TechnologiesFlexible Budget Performance ReportMonth Ended July 31, 2019Flexible BudgetSales VolumeStatic (Master)Budget FormulaFav/UnfavFlexible BudgetVarianceFav/UnfavBudgetActual ResultsVarianceUnitsSales RevenueVariable ExpensesContribution Marginp Fixed Expenses1 Operating Income42536format style789 # 4. Magnet Technologies manufactures refrigerator magnets for companies as promotional items. The company's July 2019 Flexible Budget shows output levels of 3,000, 5,000 and 7,000 units.The static budget was based on 5,000 unitsBudget Formula5 Unitss Sales- Variable Expenses3 Contribution Margine Fixed ExpensesO Net Income3,000$120,000$57,0005,000$200,000$95,0007,000$40$19$280,000$133.000$147,000$32,000$115,000$63.000$105,000$32,000$32,000$31,000$73,00012 The company sold 7,000 units and it's actual results are as follows:1 Sales5 Variable ExpensesContribution Margin7 Fixed Expenses8 Net Income$297,000$151,000$146,000$34,000$112,000O Required:1 1. Prepare the Flexible Budget Performance Report2 2. What is the effect on net income on Magnet Technologies from selling more units that the Master Budget anticipated?3 3. Why are flexible budget reports useful to managers?

A report that is prepared to determine the actual revenues and costs for actual sales during the…

4. Magnet Technologies manufactures refrigerator magnets for companies as promotional items. The company's July 2019 Flexible Budget shows output levels of 3,000, 5,000 and 7,000 units The static budget was based on 5,000 units Budget Formula nits ales ariable Expenses contribution Margin ixed Expenses let Income 3,000 $120,000 5,000 $200,000 7,000 $280,000 $40 $19 $57.000 $95.000 $133,000 $63,000 $32,000 $31,000 $105.000 $147,000 $32,000 $115,000 $32,000 $73,000 The company sold 7,000 units and it's actual results are as follows: Sales ariable Expenses Contribution Margin Fixed Expenses $297,000 $151,000 $146,000 $34,000 let Income $112,000

4. Magnet Technologies manufactures refrigerator magnets for companies as promotional items. The company's July 2019 Flexible Budget shows output levels of 3,000, 5,000 and 7,000 units The static budget was based on 5,000 units Budget Formula nits ales ariable Expenses contribution Margin ixed Expenses let Income 3,000 $120,000 5,000 $200,000 7,000 $280,000 $40 $19 $57.000 $95.000 $133,000 $63,000 $32,000 $31,000 $105.000 $147,000 $32,000 $115,000 $32,000 $73,000 The company sold 7,000 units and it's actual results are as follows: Sales ariable Expenses Contribution Margin Fixed Expenses $297,000 $151,000 $146,000 $34,000 let Income $112,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

7-3A - Multi-product CVPAwesome Axes sells electric guitars. The company sells three models of guitar: Enthusiast, Jammer and Pro.Information relating to next year's budget for the three models follows: EnthusiastJammerProExpected sales (units)60035050Sales price$200$500$3,000Variable cost$120$200$800The company has annual fixed costs of $200,000 and a tax rate of 25%.Required:a.) Compute the company's expected profit (net income) for the upcoming fiscal period.b.) Compute the company's sales mix.c.) Assuming a consistent sales mix, how many units of each product type must the company sell to break even?d.) Assuming a consistent sales mix, if the company wishes to earn net income of $300,000, how many units of each product type must be sold?e.) Compute the margin of safety in both dollar and percentage terms.
Please proper explain and show all step Do not give solution in image format
Consider the following information from the sales budget (Sales in units) Mar Jan 8,500 Feb 8,000 Nov Dec 16,000 Oct 6,000 18,000 5,000 Sales Additional information: Sales price: $8.00; Credit sales = 80.0% of total sales Ending inventory requirements: Production budget 40.0%; Purchases budget %3D %3D 10.0% Material required for each product 6.0 kilograms of recycled aluminum; the price per kilogram of recycled aluminum = $0.80 !! %3! Compute the cost of material purchased in November. $74,496 $80,544 $82,560 $85,440
Please do not give solution in image format thanku
Please do not give solution in image format thanku
9. Sheridan company has the following budgeted costs for the next year:
e. Manufacturing Overhead Budget Sales Revenue The Eastern Technology Company manufactures Weather Radios for sale to retailers such as Wal-Mart, Target, etc. The 2016 quarterly unit sales estimates and projected sales prices per unit areas follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales units 9,200 9,300 9,500 9,400 Price per unit $90 $90 $90 $90 Also, note that that projected sales (and projected production) for Quarter 1 of 2017 is 10,000 units Product Cost Assumptions The company's product requires two raw materials, resistors and switches. Cost parameters are as follows: Number of Components/Unit Switches @ $4/switch 3 Resistors @ $8/switch 2 Number of minutes required to complete finished unit Direct labor minutes per unit Machine minutes per unit 30 12 Hour rates used Direct labor rate= $10/hour Manufacturing overhead rates (i.e., the PDOHRS to use to apply overhead) Labor-related= $25/hour Machine-related= $40/hour Eastern applies manufacturing overhead using two cost…
Meman
Accepting Business at a Special Price Forever Ready Company expects to operate at 90% of productive capacity during July. The total manufacturing costs for July for the production of 37,800 batteries are budgeted as follows: Direct materials $413,800 152,100 Direct labor Variable factory overhead 42,680 Fixed factory overhead 85,000 Total manufacturing costs $693,580 The company has an opportunity to submit a bid for 2,000 batteries to be delivered by July 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during July or increase the selling or administrative expenses. What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit
1. wHAT IS THE CASH PAYMENTS IN QUARTER 3 2. HOW MUCH IS THE TOTAL MANUFACTURING OVERHEAD BUDGET 2023?
Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 520 sun shades in May and 340 in June. Each shade sells for $149. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-7 (Algo) Preparing Direct Labor and Manufacturing Overhead Budgets [LO 8-3d] Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $14 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. 2. Prepare Shadee's manufacturing overhead budget for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Shadee's manufacturing overhead budget for May and June. May…
im.2