abor per attaché case are$40, $8, and $13, respectively. The president is pleased with the following performance report:Actual output was 9,200 attaché cases. Assume all threedirect-cost items above are variable costs. Requirement Is the presiden

abor per attaché case are$40, $8, and $13, respectively. The president is pleased with the following performance report:Actual output was 9,200 attaché cases. Assume all threedirect-cost items above are variable costs. Requirement Is the presiden

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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Bramble Company uses budgets in controlling costs. The August 2020 budget report for the company’s Assembling Department is as follows. BRAMBLE COMPANYBudget ReportAssembling DepartmentFor the Month Ended August 31, 2020 Difference Manufacturing Costs Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Variable costs Direct materials $51,240 $50,240 $1,000 Favorable Direct labor 59,780 56,680 3,100 Favorable Indirect materials 25,620 25,920 300 Unfavorable Indirect labor 19,520 19,090 430 Favorable Utilities 15,250 15,080 170 Favorable Maintenance 12,200 12,400 200 Unfavorable Total variable 183,610 179,410 4,200 Favorable Fixed costs Rent 11,800 11,800 –0– Neither Favorable nor Unfavorable Supervision 19,000 19,000 –0– Neither Favorable nor Unfavorable Depreciation 7,500 7,500 –0– Neither Favorable nor Unfavorable…
sharad
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 Sales Cost of Goods Sold Direct Material Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Cost of Goods Sold Gross Profit Variable Sales and Administrative Expenses Fixed Sales and Administrative Expenses Income Before Taxes Taxes Net Income/Loss 100,000 80,000 90,000 $3,370,000 $ $900,000 $ 900,000 230,000 70,000 $2,100,000 $ $1,270,000 100,000 960,000 $210,000 $ 63,000 $147,000 $ $ $
Summer Company's static budget is based on a planned activity level of 25,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 20,000 units and one based on 30,000. The company actually produced and sold 29,000 units. In evaluating its performance, management should compare the company's actual revenues and costs to which of the following budgets? A) A budget based on 29,000 unitsB) A budget based on 25,000 unitsC) A budget based on 30,000 unitsD) A budget based on 20,000 units
A flexible budget graph for the Assembly Department shows the following: 1. At zero direct labor hours, the total budgeted cost line intersects the vertical axis at $128,000. 2. At normal capacity of 50,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $376,000. Develop the budgeted cost calculation for the Assembly Department and identify the fixed and variable costs.
Bowflex Corporation is organized as a decentralized company. The strength division is organized as a Cost Center and reports the following costs: Line Item Full Year Budget Full Year Actuals Production Line Wages $20,000 $30,000 Production Line Salaries 40,000 55,000 Property Depreciation 25,000 20,000 Overhead Costs 15,000 12,000 Prepare a brief Cost Center Budget Performance Report AND include what the first action you would take as a financial controller would be.
dent is pleased with the following performance report: bor, and direct marketing (distribution) labor per attaché case are $43, $6, and $13, respectively. The presi- 7-22 Flexible budget. Bryant Company's budgeted prices for direct materials, direct manufacturing la- ASSIGNMENT M Flexible budget. Bryant Company's budgeted prices for direct materials, direct manufacturing la- Actual Costs Static Budget Variance Direct materials $438,000 $473,000 $35,000 F Direct manufacturing labor Direct marketing (distribution) labor 63,600 66,000 2,400 F 133,500 143,000 9,500 F Actual output was 10,000 attaché cases. Assume all three direct-cost items shown are variable costs. Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. ook
! Required information [The following information applies to the questions displayed below.] The fixed budget for 21,300 units of production shows sales of $617,700; variable costs of $63,900; and fixed costs of $143,000. The company's actual sales were 26,800 units at $730,200. Actual variable costs were $113,400 and actual fixed costs were $133,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Contribution margin Flexible Budget Performance Report Flexible Budget Actual Results Variances Favorable/ Unfavorable
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.
You have asked your sales manager to explain why budgeted revenues for your division are below expectations. The budget indicated $1,039,500 of revenues based on a sales volume of 1,485,000 units. Sales records indicate that 1,500,400 product units were actually sold, but revenues were only $1,020,272. Calculate the sales price variance, the sale volume variance, and the total revenue variance. Sales price variance $ Unfavorable Sales volume variance $ Favorable Total revenue variance $ Unfavorable
Rakesh
Required Information [The following information applies to the questions displayed below.] The fixed budget for 21,300 units of production shows sales of $489,900; variable costs of $63,900; and fixed costs of $144,000. The company's actual sales were 27,300 units at $580,900. Actual variable costs were $113,400 and actual fixed costs were $138,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no variance.) Contribution margin Flexible Budget Performance Report Flexible Budget Actual Results Variances Favorable/ Unfavorable