All Kiwi Ltd (a New Zealand-based company) has a wholly-owned subsidiary in Malaysia whose manager is being evaluated on the basis of the variance between actual profit and budgeted profit in New Zealand dollars(NZD). Relevant information in Malaysian ringgit (MYR) for the current year is as follows:BudgetRevenues MYR 12,000,000 MYR 11,000,000Expenses9,000,0009,000,000Current year actual and projected exchange rates between the New Zealand dollar (NZD) and the Malaysian ringgit (MYR) are as follows:Actual at time of budget preparationProjected ending at time of budget preparationActual at end of budget periodMultiple ChoiceRequired:Calculate the total budget variance for the current year using the exchange rate that exists at the end of the budget period.OOVariance (unfavorable) ($320,000).ActualVariance (favorable) $320,000.Variance (unfavorable) ($357,000).Variance (unfavorable) ($340,000).NZD 0.312 per MYR 1NZD 0.340 per MYR 1NZD 0.357 per MYR 1

Budget variance analysis is the practice of comparing actual results to the budget values for the…

Answered: All Kiwi Ltd (a New Zealand-based…

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

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.
Review Annual Profit Rate Given the following information compute the annual profit rate: Investment Duration (months) Balance Account 1000 250000 150000 12 24 6 Profit Distributable 30 23500 1500 Application Mudaraba The Unre tricted Investment Accounts (UIA) of an Islamic Bank are based on a Mudaraba agreements with a profit-sharing ratio of 40% (Mudarib) and 60% (Capital Provider). The Islamic bank invested the UIA balance of QR 2.500.000 million in an oil company for one year with the agreement to share the profit with the oil company using the following ratio 55% (Mudarib) and 45% (Capital Provider). At the end of the year the oil company earned QR 125.000 as profit. Find the income distributable to the UIA holders. Find the UIA holders annual profit rate. Suppose the market annual profit rate for the same type of Unrestricted Investment Accounts is 1.75 %. What would be the new profit-sharing ratio between the Islamic Bank and the Unrestricted Investment Accounts holders.
6. Bloomsbury plc sells one product for which data for a budgeted period are given below: Selling price per unit Variable cost per unit Fixed cost per unit 80 48 16 Fixed costs are based on a budgeted level of activity of 5,000 units. Calculate the total costs of production of 5,000 units: A. £80,000 B. £240,000 C. £320,000 D. £400,000.
Benson Company has provided the following Year 2 data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense BENSON COMPANY Internal Income Statement for Year 2 Budget Required Prepare a budgeted and actual Income statement for Internal use. Sales Variable expenses: Product costs $504,000 186,000 46,000 3,300 16,500 23,400 1,900 700 Selling expenses Other expenses Contribution margin Fixed expenses: Product costs Selling expenses Other expenses Operating income (loss) Interest expense Net income (loss) 8,600 Unfavorable 4,200 Favorable 2,300 Unfavorable 1,700 Unfavorable 310 Favorable 490 Favorable 190 Unfavorable 90 Favorable Actual
Canucks plc has prepared the following flexible budget for the coming year. The Budgeted level of activity is 7,500 units. SalesDirect material Direct labour Variable overheads Fixed overheads Profit £ 250,000 75,000 60,000 30,000 45,000 22,500 If the budget is flexed to a level of activity of 10,000 units, what would the total budgeted cost be? a) £265,000 b) £280,000 c) £123,750 d) £168,750
E9-3A Budget Preparation Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $30? b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 7,000 units, how many units should be produced? c. What dollar amount of materials should be purchased at $2 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively? d. How much direct labor cost should be incurred if each unit produced requires 0.5 hours at an…
II. HB Corporation in Delaware, U.S., makes and sells a single product. The company operates a standard costing system and a just-in-time purchasing and production system. No inventory of raw materials or finished goods is held. Details of the budget and actual data for the previous period are given below: Budget data Standard production costs per unit (currency in U.S. dollar, $): 8kg at the rate of $10.80 per kg 1.25 hours at the rate of $18.00 per hour Variable overheads1.25 hours at the rate of $6.00 per direct labor hour Direct material 86.40 Direct labor 22.50 7.50 Standard selling price: $180 per unit Budgeted fixed production overheads: $170 000 Budgeted production and sales: 10 000 units Actual data Direct material: 74 000kg at the rate of11.20 per kg Direct labor: 10,800 hours at the rate of$19.00 per hour Variable overheads: $70,000 Actual selling price: $184 per unit Actual fixed production overheads: $168 000 Actual production and sales: 9000 units Requirements 3.…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS