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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Connor Company's budgeted costs for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per computer case are $40, $8 and $12 respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct Materials $364,000 $400,000 $36,000 F Direct Manufacturing Labor 78,000 80,000 2,000 F Direct Marketing (distribution) Labor 110,000 120,000 10,000 F Actual output was 8,800 cases. Assume all three cost items are variable. Is the president's pleasure justified? Prepare a revised flexible budget for 8,000, 8,800 and 10,000 cases using the framework posted on Canvas. Fixed Costs are budgeted to be $100,000 and actual Fixed Costs are $103,000. Resource Per Unit costs 8,000 8,800 10,000 Actual Costs
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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 $3,580,000 $fill in the blank 1 $fill in the blank 2 Cost of Goods Sold Direct Material $900,000 $fill in the blank 3 $fill in the blank 4 Direct Labor 1,100,000 fill in the blank 5 fill in the blank 6 Variable Manufacturing Overhead 240,000 fill in the blank 7 fill in the blank 8 Fixed Manufacturing Overhead 70,000 fill in the blank 9 fill in the blank 10 Cost of Goods Sold $2,310,000 $fill in the blank 11 $fill in the blank 12 Gross Profit $1,270,000 $fill in the blank 13 $fill in the blank 14 Variable Sales and Administrative Expenses 100,000 fill in the blank 15 fill in the blank 16 Fixed Sales and Administrative Expenses 940,000 fill in the blank…
Please do not give solution in image format thanku
The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results. Actual Results Flexible Budget Static Budget Sales volume (in units) 19,000 18,000 Sales revenues $240,000 $ $233,000 Variable costs 141,000 183,000 Contribution margin 99,000 50,000 Fixed costs 41,000 34,000 Operating profit $58,000 $ $16,000 The flexible budget will report ________ for the fixed costs. Do not give answer in image formate
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3. 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. Sales $3,500,000 Cost of goods sold Direct material 900,000 Direct labor 1,000,000 Variable manufacturing overhead Fixed manufacturing overhead Cost of goods sold Gross profit Variable sales and administration expenses Fixed sales and administration expenses 250,000 80,000 2,230,000 1,270,000 100,000 950,000 Income before taxes 220,000 Таxes 66,000 Net income $ 154,000
View Policies Current Attempt in Progress Avalon, Inc's static budget shows $40,500 budgeted for direct materials, $54,000 budgeted for direct labor, and $13,500 budgeted for overhead. Avalon's actual direct materials were $42,000, actual direct labor was $51,000, and actual overhead was $13,800. What is the total difference between the static budget and actual, and is the difference favorable or unfavorable? O $4,800, unfavorable O $1,200, favorable O $1,200, unfavorable O $4,800, favorable Save for Later Attempts: 0 of 1 used Submit Answer
Cullumber's, Inc. has provided you with the following financial information: Budgeted Actual Sales Quantity 8,500 8,700 Sales price per unit $6.00 $5.75 Variable product cost per unit 2.00 2.25 Selling expense (fixed) 5,500 8,500 Administrative expense (fixed) 17,500 16,500 Income tax expense 4,300 4,500 Prepare a flexible budget. CULLUMBER'S, INC. Flexible Budget $ $
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