Assume that the amount of one of a company's variable expenses in its flexible budget is $40,000. The actual amount of the expense is $42,400 and the amount in the company's planning budget is $44,000. The spending variance for this expense is: Multiple Choice $4,800 U. $2,400 U. $2,400 F. $4,800 F.
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: The static budget variance of variable Cost = Actual variable Cost - Budgeted variable Cost
Q: Ray's cost accountant prepared the following static budget based on expected activity of 2,000 units…
A: Lets understand the basics.Costs are mainly divided into two types which are,(1) Variable cost (2)…
Q: Complete the flexible budget variance analysis by filling in the blanks in the partial flexible…
A: The flexible budget performance report is prepared to estimate the different variances for actual…
Q: Global Engineering's actual operating income for the current year is $57,000. The flexible budget…
A: Sales volume variance for operating income = Flexible Budget Operating Income for actual sales -…
Q: ncoln Corporation used the following data to evaluate their current operating system. The company…
A: Solution: Actual operating income = sales - variable cost - fixed costs = 47000*10 - 167000 - 45000…
Q: What was James’s flexible budget sales revenue for July?
A: Sales activity variance for Variable Marketing and administrative cost is $3500 F that means…
Q: Actual Results Static Budget Units 990 700 Sales Revenue $75,240 $37,800 Variable Costs 35,640…
A: Solution: static budget variance for operating income = Actual opetrating income - static budget…
Q: Total Fixed Costs at 120 hours =
A: Total fixed costs at 120 hours $600
Q: alculate the sales volume variance.
A: The difference that arises between the flexible budget and actual results is termed flexible budget…
Q: Assume that the amount of one of a company's fixed expenses in its flexible budget is $46,000. The…
A: Spending variances are based on the difference of Actual costs and Flexible budget costs. Fixed…
Q: Complete the flexible budget variance analysis by filling in the blanks in the partial flexible…
A: Flexible budget variance is the difference between actual results and a flexible budget. The…
Q: The fixed budget for 21,900 units of production shows sales of $481,800; variable costs of $65,700;…
A: Fixed budget: A fixed budget is designed to remain unchanged irrespective of the level of activity…
Q: Assume that a company provided the following cost formulas for three of its expenses (where q refers…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: [The following information applies to the questions displayed below] The fixed budget for 21,300…
A: The contribution margin is calculated as excess of sales revenue over total variable cost.
Q: A company’s flexible budget for 21,000 units of production showed sales, $96,600; variable costs,…
A: Fixed costs are the expenses that remain constant regardless of the level of production or sales.…
Q: The following static budget is provided: Per Unit Total Sales $ 70 $ 1,050,000 Less variable costs:…
A: Volume variance :— It is the difference between flexible budget and static budget. Flexible…
Q: Assume the following information for one of a company’s variable expenses: The amount of the…
A: OVERHEAD SPENDING VARIANCE Expenditure or Budget or Price Variance is is the Variance is due to…
Q: The following information is given for one of a company's variable expenses: The activity variance…
A: Solution: Difference in hours = Planned hours - Actual hours =1000 - 900 = 100 hours
Q: Bear Creek Golf Center reported actual operating income for the current year as $66,000. The…
A: A flexible budget is a that budget which includes all the flexibility and change in the output. In…
Q: ume the following information for one of a company’s variable expenses: The activity variance is…
A: Answer : Activity variance = (Planned level of activity - Actual level of activity) * Variable…
Q: expected if the company produces and sells 28,000 units is: Multiple Choice $ 6,800. $50,256.…
A: WORKING NOTES: Sale= ($46800/12000 units ) x 28000 units Variable cost=($12000/12000 units ) x 28000…
Q: ollowing information for one of a company’s variable expenses: The amount of the expense in the…
A: Expense refers to the total amount of costs involved in manufacturing a product in order to create…
Q: Required information Use the following information for the Quick Study below. (Algo) [The following…
A: The flexible budget is prepared to estimate the budgeted net income at the actual level of…
Q: Edwards Corporation used the following data to evaluate their current operating system. The company…
A: Description: Static budget variance of variable costs: Deduction of Budgeted Variable costs from…
Q: Assume that a company's budgeted revenue per unit is $50. The company's planned level of activiy was…
A: Main purpose of Standard costing is to compare your actual performance with these standards and…
Q: The fixed budget for 21,500 units of production shows sales of $473,000; variable costs of $64,500;…
A: The flexible budget is prepared to estimate the budgeted costs for the actual production level. The…
Q: Assume that the amount of one of a company’s variable expenses in its flexible budget is $40,000.…
A: Solution" Variable expense under flexible budget = $40,000 Actual amount of expense = $42,400…
Q: Required information IThe following information applies to the questions displayed below.] The fixed…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Sanford Company original assumptions for the planning budget were: Total sales = $160,000, sale…
A: Given: Budgeted Quantity (BQ)=$160000$20=8000 unitsBudgeted Price (BP)=$20Actual Quantity (AQ)=8200…
Q: Rolling Corporation has developed the following flexible budget formula for monthly overhead: For…
A: A flexible budget is one that adapts to a company's activity or volume levels. Unlike a static…
Q: fixed budget for 20,800 units of production shows sales of $582,400; variable costs of $62,400; and…
A: Lets understand the basics. Flexible budget is prepared by the management to know sales, variable…
Q: Assume that the amount of one of a company's variable expenses in its flexible budget is $40,000.…
A: The variance is the difference between the actual and standard cost data. The activity variance is…
Q: Using the following budgeted information for production of 9,000 and 16,000 units, prepare a…
A: Total expenses = Expense A + Expense B + Expense C
Q: Lincoln Corporation used the following data to evaluate their current operating systemThe company…
A: The static budget variance of variable cost = Actual variable cost - Budgeted variable cost
Q: operating costs wer
A: Given as, Revenue $25 Operating costs $4.75 $3,150
Q: Assume that a company provided the following cost formulas for three of its expenses (where q refers…
A: Flexible budget is prepared for the actual units where the budget is prepared considering the…
Q: Assume that a company has two cost drivers-number of courses and number of students. The planned…
A: ACTIVITY BASED COSTING Activity Based Costing is a powerful tool for measuring…
Q: The fixed budget for 20,400 units of production shows sales of $550,800; variable costs of $61,200;…
A: The flexible budget performance report is prepared to compare the actual and flexible production…
Q: Assume that a company provided the following excerpts of information from its flexible budget…
A: Organizations can evaluate how changes in activity levels affect costs and performance by using…
Q: Required information [The following information applies to the questions displayed below.] The fixed…
A: Lets understand the basics. Flexible budget is prepared by the management to know sales, variable…
Q: A company provided the following information from its flexible budget performance report: Actual…
A: Flexible budget = Fixed cost+( actual result units × variable…
Q: Required information Use the following information for the Quick Study below. (Algo) [The following…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: Required information Use the following information for the Quick Study below. (Algo) [The following…
A: The flexible budget performance report is prepared to compare the actual and flexible production…
Q: Assume that a company provided the following cost formulas for three of its expenses (where q refers…
A: The difference between planning and flexible budget is said to be revenue and spending variance.
Q: The following static budget is provided: Per unit $70 Total $1,050,000 Sales Less variable costs:…
A: Formula to determine overall volume variance.
Q: James Manufacturing has the following information available for July: Actual Results…
A: The flexibile budget performance report is prepared to compare the actual and flexible results.
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- 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.Marla Baldwin was a blt anxlous as she created the year-end performance reports. She remembered how management had hoped the economy would make a favorable turn, taking pressure off consumers so they'd feel more comfortable spending on the company's splurge Item-a luxurious hooded cotton robe. Alas, actual production and sales ended at 5,100 units, a whopping 1,000 units shy of the company's original budget. The following Information presents the company's actual Income statement and other key Information for Marla. Sales Varlable costs: DM Actual Income DL Varlable-MOH Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating Income Standards are as follows. Direct materials Direct labor Variable-MOH Fixed-MOH $800,700 Selling price Fixed SGSA expense 172,125 (for 11,475 yards purchased and used) 75,276 (for 3,672 hours used) 45,900 O Search 507,399 170,978 243,100 Standard Quantity per Unit 2.30 yards 0.70 DL hours $93.321 Additional master budget Information: 2.30 yards 2.30…Flexible Analysis Report Actual Flexible Sales-Volume Static Budget Results Budget Variances Budget Variance 18,500 A) B) C) 20,000 Units Sold D) $185,000 Fav E) F) G) Revenues H $92,500 Un I) $90,000 Fav J) Variable Costs K) $50,000 Fav L) M) $500,000 Fixed Costs N) O) P) Q) R) Operating Income A) B) C) D) E) F) G) H) I) J) K) L) M) N) O) P) Q) Q)
- Required information [The following information applies to the questions displayed below.] The fixed budget for 21,400 units of production shows sales of $470,800; variable costs of $64,200; and fixed costs of $141,000. If the company actually produces and sells 27,000 units, calculate the flexible budget income. ------Flexible Budget------ ------Flexible Budget at ------ Variable Amount Total Fixed 21,400 units 27,000 units per Unit Cost Contribution marginArberg Company’s controller prepared the following budgeted income statement for the coming year: Sales $417,000 Variable cost 287,730 Contribution margin $129,270 Fixed cost 75,950 Operating income $53,320 2. Suppose Arberg’s actual revenues are $29,900 more than budgeted. By how much will operating income increase?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
- Help Save & Exit AA company provided the following information from its flexible budget performance report: Actual Results 52 Flexible Budget Master Budget Trips (q) 2. Expenses: Maintenance expense ($4,000 + $88.00g) $8,440 $8,400 What is the spending variance for maintenance expense? Multiple Choice $136 F $136 U $176 U Nex 11 of 23 < PrevRequired Information [The following information applies to the questions displayed below.] The fixed budget for 21,500 units of production shows sales of $559,000; variable costs of $64,500; and fixed costs of $142,000. If the company actually produces and sells 26,500 units, calculate the flexible budget Income. Sales Variable costs Contribution margin Fixed costs Income ------Flexible Budget-..... Variable Amount Total Fixed per Unit Cost $ 689,000 689,000 ------Flexible Budget at 21,500 units $ $ 0 0 26,500 units $ $ 0 0Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 4.009 $150 + $0.75q The company's planned level of activity was 2,110 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget? Multiple Choice C $7,840 $8,140 $8,340 $ 3,000 $8,440
- A company’s static budget estimate of total shipping cost was $100,000 based on theassumption that 10,000 units would be produced and sold. The company estimatesthat 30% of this amount is variable and the remainder is fixed. What would be thetotal shipping cost if 12,000 units were produced and sold?a. $96,000b. $100,000c. $106,000d. $116,000Budgets Question 1. A manager had the following operating budget and achieved the actual results shown. Calculate the variance and variance percentage for each line item. Then answer the questions that follow. Sales Budget Actual Variance Food $500,000 $550,000 Beverage |50,000 165,000 $650,000 Total Sales Total Controllable Expense Total Fixed Expense 450,000 495,000 135,000 135,000 Profit (Loss) $65,000 What is your assessment of this operation's expense control performance during this budget period? 2. Why are managers who are skilled at controlling expenses in such high demand in the hospitality industry? W APRRequired information [The following information applies to the questions displayed below.] The fixed budget for 21,600 units of production shows sales of $583,200; variable costs of $64,800; and fixed costs of $143,000. The company's actual sales were 26,900 units at $679,300. Actual variable costs were $113,300 and actual fixed costs were $132,000. 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.) Sales Variable costs Contribution margin Fixed costs Income X Answer is complete but not entirely correct. Flexible Budget Performance Report Flexible Actual Budget Results $ $ 645,600 80,700 564,900 143,000 421,900 Variances $ 679,300 $ (33,700) 113,300 (32,600) 566,000 (63,500) 132,000 11,000 $ 434,000 $ (12,100) Favorable/ Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable