68 A hairstyling salon constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June. The owner expects 1,000 customers but hopes for 1,100 customers. Average sale per customer is $40. Costs include rent of $5,000; payments to hairstylists of $20 per customer; and overhead of $10 per customer. In June, the salon had 1,050 customers, and the net income was $8,000. What will the owner find concerning the net income variance while reviewing the bottom line of the flexible budget and the actual monthly results? O This net income shows a favorable $2,500 variance. This net income shows an unfavorable $2,500 variance. O This net income shows a favorable $2,000 variance. O This net income shows an unfavorable $2,000 variance.

68 A hairstyling salon constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June. The owner expects 1,000 customers but hopes for 1,100 customers. Average sale per customer is $40. Costs include rent of $5,000; payments to hairstylists of $20 per customer; and overhead of $10 per customer. In June, the salon had 1,050 customers, and the net income was $8,000. What will the owner find concerning the net income variance while reviewing the bottom line of the flexible budget and the actual monthly results? O This net income shows a favorable $2,500 variance. This net income shows an unfavorable $2,500 variance. O This net income shows a favorable $2,000 variance. O This net income shows an unfavorable $2,000 variance.

Name: 68A hairstyling salon constructed a flexible budget projecting 1,000
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: 68A hairstyling salon constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June.The owner expects 1,000 customers but hopes for 1,100 customers. Average sale per customer is $40.Costs include rent of $5,000; payments t

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

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes. Factory administration The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.20g $4,200+ $1.50g $5,700+ $0.60g $1,500+ $0.10g $18,300+ $2.60g $8,600 $2,500 $13,300+ $0.90g Actual Cost Incurred in March $ 66,360 $ 9,680 $ 8,610 $ 2,130 $ 28,700 $ 9,000 $ 2,500 $ 16,310 Required: 1. Prepare the Production…
Samuel Corporation's budgeted production is 64,000 units per month. Each unit requires 2 hours of direct labor to complete. The direct labor cost is $48 per hour. Calculate the budgeted cost of direct labor for the month. A. 3,072,000 B. 3,071,904 C. 6,144,000 D. 6,400,000
Courington Detailing's cost formula for its materials and supplies is $1,890 per month plus $8 per vehicle. For the month of August, the company planned for activity of 84 vehicles, but the actual level of activity was 49 vehicles. The actual materials and supplies for the month was $2,450. The materials and supplies in the flexible budget for August would be closest to: Multiple Choice $2,450 $1,417 $2,562 $2,282
The Charmatz Corporation has a central copying facility. Its offices can supply up to 800,000 copies per year. The copying facility has only two users, Department A and Department B. The following data apply to the coming budget year: Budgeted costs of Copy Support Department are: Fixed costs per year $70,000 per year Variable costs $0.02 per copy The operating departments have estimated their usage as follows: Department A 120,000 copies Department B 480,000 copies Actual usage for the year was: Department A 150,000 copies Department B 450,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage is used to allocate costs under the single-rate method. Actual usage is used to allocate variable costs and budgeted usage is used to allocate fixed costs under the dual-rate method. How will…
Batson Company produces Trivets. Based on its master budget, the company should produce 2.000 Trivets each month. working 3.900 direct labor-hours. During May, only 1,900 Trivets were produced. The company worked 3.800 direct labor-hours. The standard hours allowed for May production would be Multiple Choice 3,705 hours. 5,610 hours. 3,800 hours. 3.900 hours.
Give answer within an hour I will give you up vote ....its very urgent
Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small businesses. The following data are available for last year's services: • WTS recorded 120,600 tech calls last year. It had budgeted 126,200 calls, averaging 90 minutes each. • Standard variable labor and support costs per tech call were as follows: . Direct IT specialist services: 90 minutes at $54 per hour Variable support staff, supplies, and overhead: 30 minutes at $24 per hour Fixed overhead costs: Annual budget $4,141,200 Fixed overhead is applied at the rate of $36.00 per call. Actual tech service call costs: Direct IT specialist services: 120,600 calls averaging 84 minutes at $56.00 per hour Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour x 120,600 calls Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance analysis. Complete this question by…
3
Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small businesses. The following data are available for last year's services: • WTS recorded 121,100 tech calls last year. It had budgeted 127,200 calls, averaging 90 minutes each. • Standard variable labor and support costs per tech call were as follows: Direct IT specialist services: 90 minutes at $54 per hour Variable support staff, supplies, and overhead: 30 minutes at $24 per hour • Fixed overhead costs: Annual budget $4,142,200 Fixed overhead is applied at the rate of $36.00 per call. • Actual tech service call costs: Direct IT specialist services: 121,100 calls averaging 84 minutes at $56.00 per hour Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour x 121,100 calls Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance analysis. Complete this question by…
6. Dauber Inc. budgeted production of 33,000 personal journals in 20Y6. Each journal requires assembly. Assume that four minutes are required to assemble each journal. If assembly labor costs $16.25 per hour, determine the direct labor cost budget for 20Y6. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. $______
Current Attempt in Progress Each production worker can produce 6 wooden chairs per hour. During the month of June, Vaughn, Inc. has forecasted sales of 109000 chairs. The beginning inventory was 980 chairs, and desired ending inventory is 2590 chairs. How many hours of direct labour must be budgeted to meet production needs? O 17898 O 18167 O 17572 O 18435
5. A business has the following budgeted financial data for next year: January February Production units 8,000 9,000 Direct labor hours per unit 0.5 0.5 Straight time man hours 4,800 4,100 Straight time wage rate per hour $16 $16 Overtime wage rate (time and a half) $24 $24 Assume the business plans to pay all straight time man hours budgeted regardless of demand. A. Determine the total labor cost for January based on the data above. B. Determine the total labor cost for February based on the data above.