Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and managementneeds to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales.Flexible Budget100,00080,00090,000Sales$3,570,000 $Cost of Goods SoldDirect Material$900,000 $$Direct Labor1,100,000Variable Manufacturing Overhead240,000Fixed Manufacturing Overhead70,000Cost of Goods Sold$2,310,000 $$4Gross Profit$1,260,000$4Variable Sales and Administrative Expenses100,000Fixed Sales and Administrative Expenses940,000Income Before Taxes$220,000Taxes66,000Net Income/Lss$154,000 $

sales per unit = sales / number of units sold = $3570000 / 100000 = $37.5 Flexible budget at 80000…

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 100,000 80,000 90,000 Sales $3,570,000 $ $4 Cost of Goods Sold Direct Material $900,000 $4 Direct Labor 1,100,000 Variable Manufacturing Overhead 240,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,310,000 $4 Gross Profit $1,260,000 $ Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 940,000 Income Before Taxes $220,000 $4 Taxes 66,000 Net Income/LoSs $154,000 $

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 100,000 80,000 90,000 Sales $3,570,000 $ $4 Cost of Goods Sold Direct Material $900,000 $4 Direct Labor 1,100,000 Variable Manufacturing Overhead 240,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,310,000 $4 Gross Profit $1,260,000 $ Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 940,000 Income Before Taxes $220,000 $4 Taxes 66,000 Net Income/LoSs $154,000 $

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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Abu Dhabi Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing labor per case are $40, $8, and $12 respectively. The Managing Director of the The company is quite satisfied with the following performance report: out of Actual Cost Static Budget Variance question Direct materials $364,000 400,000 36,000 F Direct manufacturing labor 78,000 80,000 2.000 F Direct marketing labor 110,000 120,000 10,000 F Required: Based on the flexible budget analysis, provide justification on the Managing Director satisfaction on performance Give documented analysis
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The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000. Required: Prepare a flexible budget for Western.
Jay
Current Attempt in Progress Monty Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.50 Indirect materials 1.10 Utilities 0.80 Budgeted fixed overhead costs per month are Supervision $3,920, Depreciation $1,176, and Property Taxes $784. The company believes it will normally operate in a range of 6,860-9,800 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 980 direct labor hours. (List variable costs before fixed costs.) MONTY COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2022
Your managerial accountant provided you with information comparing the actual results to the budgeted amounts for the period: Static Flexible Actual Quantity 3,200 DL hours 2,900 hours 2,900 hours Price $15 per hour $15 per hour $18 per hour Total Costs $48,000 $43,500 $52,200 Based on the information provided, select all of the true statements from the following options: Your managerial accountant provided you with information comparing the actual results to the budgeted amounts for the period: Static Flexible Actual Quantity 3,200 DL hours 2,900 hours 2,900 hours Price $15 per hour $15 per hour $18 per hour Total Costs $48,000 $43,500 $52,200 Based on the information provided, select all of the true statements from the following options: The price variance is $8,700, favorable The price variance is $8,700, unfavorable The total budget variance is $42,000, favorable The price variance is $3.00, favorable The…
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The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which is given below. Flexible Sales Actual Budget Results Variance Flexible Volume Static Budget 12,900 Variance Budget 11,800 Units 12,900 1,100 F Sales Revenue $62,710 27,580 $2,894 U $65,604 27,593 $5,594 F 2,353 U $60,010 Variable Costs 13 U 25,240 Contribution Margin S2,881 U $35,130 34,240 $38,011 34,090 $3,241 F $34,770 34,090 Fixed Costs 150 U Operating Income/(Loss) $890 $3,031 U $3,921 $3,241 F $680 Which of the following would be a correct factor to explain the sales volume variance for sales revenue? O A. increase in variable cost per unit B. increase in sales volume OC. increase in sales price per unit O D. increase in fixed costs
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