Bay City Company's fixed budget performance report for July follows. The $367,000 budgeted total expenses include $280,000 variable expenses and $87,000 fixed expenses. Actual expenses include $77,000 fixed expenses. Actual Fixed Budget Variances Results Sales (in units) 5,000 3,900 Sales (in dollars) Total expenses $400,000 367,000 $ 33,000 $ 343, 200 333,000 $ 10, 200 $ 56,800 U 34,000 F $ 22,800 U Income from operations Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible budget Actual results Variances Fav./Unf. Sales 343,200 Favorable Variable expenses Unfavorable Contribution margin Favorable Fixed expenses 87,000 77,000 Favorable Income from operations Favorable

Bay City Company's fixed budget performance report for July follows. The $367,000 budgeted total expenses include $280,000 variable expenses and $87,000 fixed expenses. Actual expenses include $77,000 fixed expenses. Actual Fixed Budget Variances Results Sales (in units) 5,000 3,900 Sales (in dollars) Total expenses $400,000 367,000 $ 33,000 $ 343, 200 333,000 $ 10, 200 $ 56,800 U 34,000 F $ 22,800 U Income from operations Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible budget Actual results Variances Fav./Unf. Sales 343,200 Favorable Variable expenses Unfavorable Contribution margin Favorable Fixed expenses 87,000 77,000 Favorable Income from operations Favorable

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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Roger Company’ sells one product, and has provided the following variable and fixed estimates for budgetingpurposes.Variable element per unit Fixed element per monthRevenue $25Operating costs $4.75 $3,150For the month of August, it planned on selling 200 units, but actual units sold were 180 units. Actual revenuefor the month was $4,410 and actual operating costs were $3,865. c. Find the activity variance for revenue and operating costs for August. What would these variancesindicate? d. Find the revenue and spending variance for revenue and operating costs for August. What would thesevariances indicate?
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,200 units. Check m PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery $ 3,192,000 988,000 212,800 60,800 305,000 Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries 203,000 243,200 246,000 575,600 Depreciation-Office equipment 198,000 Income $ 159,600 Required: 1&2. Prepare flexible budgets at sales volumes of 14,200 and 16,200 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,200 units. Prepare a simple budgeted income statement if 18,200 units are sold.
Using Flexible Budgets The following summary data are from a performance report for Hyland Company for May, during which 9,600 units were produced. The budget reflects the company's normal capacity of 10,000 units. Actual Cost Budget 9,600 10,000 units units Type $102,600 $105,000 $(2,400) Favorable 207,900 210,000 (2,100) Favorable 73,800 72,000 1,800 Unfavorable 54,300 54,000 300 Unfavorable $438,600 $441,000 $(2,400) Favorable Direct material Direct labor Variable overhead Fixed overhead Total a. Prepare a new performance report using flexible budgeting. Round all amounts to the nearest dollar. Variance Direct material $ Direct labor Variable overhead Fixed overhead Totals $ Actual Costs Variances 0 $ 0 0 0 0 $ Flexible Budget 0 $ 0 0 0 0 $ 0 0 0 0 0 Type b. Which of the two performance reports should Hyland Company management use to measure the company's operating efficiency in May? 4 ◄►
Hemphill Corporation uses customers served as its measure of activity. During June, the company budgeted for 20,000 customers, but actually served 19,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:Data used in budgeting: Fixed amount per month Variable amount per customer Revenue - $4.50 Wages and salaries $23,900 $1.40 Supplies $0 $0.80 Insurance $5,700 $0.00 Miscellaneous $5,000 $0.40 Actual results for June: Revenue $85,400 Wages and Salaries $52,700 Supplies $17,500 Insurance $5,500 Miscellaneous $12,200 Calculate revenue variance, spending variance for wages and salaries, and spending variance for insurance. Label them as favorable or unfavorable. Please show your workings
Flounder Company budgeted selling expenses of $27,000 in January, $31,500 in February, and $36,000 in March. Actual selling expenses were $28,060 in January, $31,070 in February, and $41,400 in March. The company considers any difference that is less than 5% of the budgeted amount to be immaterial. Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date. NDER COMPANY g Expense Report iarter Ending March 31 SA $ Budget +A $ Year-to-Date Actual Difference $ +A $ $ $ $ tA $ +A $
The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $ 12,000 $ 16,000 $ 17,500 Cost of Goods Sold (6,400 ) (8,000 ) (7,100 ) Gross Margin 5,600 8,000 10,400 Variable Cost (2,400 ) (3,000 ) (3,600 ) Fixed Cost (1,400 ) (1,400 ) (1,700 ) Net Income $ 1,800 $ 3,600 $ 5,100 Based on this information the Multiple Choice sales price flexible budget variance is a $5,500 unfavorable variance. sales price flexible budget variance is a $1,500 favorable variance. sales price flexible budget variance is a $5,500 favorable variance. sales price flexible budget variance is a $4,000 favorable variance.
Budgeted sales for the month at 4,600 units. Budgeted variable selling and admin expense is $7.30 per unit. Budgeted fixed selling and admin expense is $51,980 of which $6,440 is depreciation. What is the budgeted cash disbursement amount for selling and administrative expense for the month? Multiple Choice $85,560 $45,540 $79,120 $33,580
The following budgeted production and sales information is for Flushing Company for the month of December: Product XXX Product ZZZ Estimated beginning inventory 28,200 units 19,800 units Desired ending inventory 35,000 units 15,300 units Region I, anticipated sales 302,000 units 253,000 units Region II, anticipated sales 196,000 units 141,000 units The unit selling price for product XXX is $7 and for product ZZZ is $15. Budgeted production for product XXX during the month is a. 504,800 units b. 498,000 units c. 533,000 units Od. 491,200 units
am. 75.
Required information [The following information applies to the questions displayed below.] A company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for April as shown below: Fixed Actual Variable Element per Total for April $ 216,500 Element per Month Customer Served Revenue 5,900 Employee salaries and 24 $ $ 116,200 $ 19,700 $ 42,500 66,000 1,300 wages Travel expenses 580 Other expenses 45,000 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during April the company actually served 40 customers. Required: 1. Calculate the amount of revenue the company will include in the April flexible budget. Amount of revenue included in the flexible budget
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,500 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales $ 3,255,000 Costs Direct materials 1,007,500 Direct labor 232,500 Sales staff commissions 77,500 Depreciation—Machinery 300,000 Supervisory salaries 199,000 Shipping 217,000 Sales staff salaries (fixed annual amount) 251,000 Administrative salaries 611,750 Depreciation—Office equipment 196,000 Income $ 162,750 Required:1&2. Prepare flexible budgets at sales volumes of 14,500 and 16,500 units.3. The company’s business conditions are improving. One possible result is a sales volume of 18,500 units. Prepare a simple budgeted income statement if 18,500 units are sold.
Ruozzo Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July. Variable Element per Fixed Element Customer Actual Total per Month Served for July Revenue $ 4,500 $ 900 $ 500 $ 100,000 $ 63,300 $ 11,500 $ 37,900 Employee salaries and wages Travel expenses $ 43,100 Other expenses $ 36,900 When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually N served during July. The activity variance for net operating income for July would have been closest to: