Assume Princeton Computer Company has created a standard cost card for the PCC model tablet computer, with overhead allocated based on direct labor hours: View the standard costs. During the month of September, Princeton Computer Company incurred the following costs while manufacturing 900 PCC model tablets: View the actual costs. Read the requirements. Requirement 1. Prepare a flexible budget for September for 700, 800, and 900 PCC model tablets. The tablet has a standard sales price of $720. List variable costs separately. Princeton Computer Company Units Sales Revenue Variable Costs: Direct Materials Direct Labor Variable Overhead Total Variable Costs Contribution Margin Fixed Costs Operating Income Flexible Budget For the Month Ended September 30 Budget Amounts per Unit 700 800 900 Standard Costs Direct materials Direct labor Variable overhead Fixed overhead Actual Costs $270 per tablet 3 hours per tablet at $29 per hour 3 hours per tablet at $12 per hour $52,000 per month Print Print Direct materials Direct labor Variable overhead Fixed overhead Done $ 250,200 80.460 33,480 53,890 Done - X X Requirements 1. Prepare a flexible budget for September for 700, 800, and 900 PCC model tablets. The tablet has a standard sales price of $720. List variable costs separately. 2. Using 800 PCC model tablets for the static budget, prepare a flexible budget performance report for September. Total sales revenue for the month was $666,000. The company sold 900 tablets. 3. What insights can the management of Princeton Computer Company draw from the performance report? [0 Print Done X
Assume Princeton Computer Company has created a standard cost card for the PCC model tablet computer, with overhead allocated based on direct labor hours: View the standard costs. During the month of September, Princeton Computer Company incurred the following costs while manufacturing 900 PCC model tablets: View the actual costs. Read the requirements. Requirement 1. Prepare a flexible budget for September for 700, 800, and 900 PCC model tablets. The tablet has a standard sales price of $720. List variable costs separately. Princeton Computer Company Units Sales Revenue Variable Costs: Direct Materials Direct Labor Variable Overhead Total Variable Costs Contribution Margin Fixed Costs Operating Income Flexible Budget For the Month Ended September 30 Budget Amounts per Unit 700 800 900 Standard Costs Direct materials Direct labor Variable overhead Fixed overhead Actual Costs $270 per tablet 3 hours per tablet at $29 per hour 3 hours per tablet at $12 per hour $52,000 per month Print Print Direct materials Direct labor Variable overhead Fixed overhead Done $ 250,200 80.460 33,480 53,890 Done - X X Requirements 1. Prepare a flexible budget for September for 700, 800, and 900 PCC model tablets. The tablet has a standard sales price of $720. List variable costs separately. 2. Using 800 PCC model tablets for the static budget, prepare a flexible budget performance report for September. Total sales revenue for the month was $666,000. The company sold 900 tablets. 3. What insights can the management of Princeton Computer Company draw from the performance report? [0 Print Done X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
H3.
Transcribed Image Text:Assume Princeton Computer Company has created a standard cost card for the PCC model tablet computer, with overhead allocated based on direct labor hours:
View the standard costs.
During the month of September, Princeton Computer Company incurred the following costs while manufacturing 900 PCC model tablets:
View the actual costs.
Read the requirements.
Requirement 1. Prepare a flexible budget for September for 700, 800, and 900 PCC model tablets. The tablet has a standard sales price of $720. List variable costs separately.
Princeton Computer Company
Units
Sales Revenue
Variable Costs:
Direct Materials
Direct Labor
Variable Overhead
Total Variable Costs
Contribution Margin
Fixed Costs
Operating Income
Flexible Budget
For the Month Ended September 30
Budget
Amounts
per Unit
700
800
900
Standard Costs
Direct materials
Direct labor
Variable overhead
Fixed overhead
Actual Costs
$270 per tablet
3 hours per tablet at $29 per hour
3 hours per tablet at $12 per hour
$52,000 per month
Print
Print
Direct materials
Direct labor
Variable overhead
Fixed overhead
Done
$ 250,200
80,460
33,480
53,890
Done
X
X
Requirements
1. Prepare a flexible budget for September for 700, 800, and 900 PCC model
tablets. The tablet has a standard sales price of $720. List variable costs
separately.
2. Using 800 PCC model tablets for the static budget, prepare a flexible budget
performance report for September. Total sales revenue for the month was
$666,000. The company sold 900 tablets.
3. What insights can the management of Princeton Computer Company draw
from the performance report?
Print
Done
Clear all
I
X
Check answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
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,
Accounting
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