Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. Thefollowing information is provided for the month of March:ActualBudgetСapty4,100 lbs.$2.90CalamineCalamineСapty3,300 lbs.$3.00rk3,870 lbs.$3.00Sales in poundsPrice per poundVariable cost per poundContribution margin4,400 lbs.$2.00Test1.22.31.001.50$1.80$0.60$1.00$1.50Budgeted and actual fixed corporate - sustaining costs are $1,850 and $2,300, respectively. What is the contribution margin for the flexible budget?brrect: 0O A. $10,020B. $9,426O C. $11,276O D. $9,266

Calamine contribution margin for the flexible budget = Actual sales in pounds x Budgeted…

Answered: Capity Tea Products has an exclusive…

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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Rooney Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Amount Number Unit Amount Number Amount @ $ 700 @ 380 $ 319,200 (168,000) 151,200 $ 487,200 (259,200) 228,000 (114,000) $ 114,000 Sales 240 $168,000 560 @ $ 570 800 Variable cost (91,200) 76,800 |(19,000) $ 57,800 240 560 @ 300 = 800 %3D Contribution margin 240 320 560 @ 270 800 Fixed cost (95,000) Net income $ 56,200 Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. c. Calculate the break-even point in total number of units. d. Determine the number of units of each product e. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. f. Determine the margin of safety based on the combined sales…
Saved en hrc produces lesther handbags The production budget for the next four months is July 5,200 units, August 7,600, September 7,500, October 31 8300 Each handbag requires 19 hous of unskilled labor (paid $15 per hour) and 3.2 hours of skilled labor (pald $23 per hour), What will be the total abor cost for the morth of August? Matple Croce ST75.950 $E59 360 $125 350 $TAB00
Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March: Actual Budget Calamine Сapty Calamine Capity Sales in pounds Price per pound Variable cost per pound 3,850 lbs. $2.80 3,960 lbs. $2.80 4,400 lbs. $2.00 3,800 lbs. $3.00 1.00 2.00 1.00 1.50 Contribution margin $1.80 $0.80 $1.00 $1.50 Budgeted and actual fixed corporate - sustaining costs are $1,850 and $2,300, respectively. For the contribution margin, what is the total flexible - budget variance? orrect A. $2 unfavorable B. $2 favorable O C. $310 favorable O D. $308 favorable
Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 4,000 5,600 10,000 9,300 Sales $ $ 28,000 $ 15,120 $ 20,000 $ 19,530 Variable costs 3,200 5,600 10,000 9,770 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 5,000 $ 7,500 $ 12,400 $ 12,170 Operating income $ 23,000 $ 7,620 $ 7,600 $ 7,360 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $4,960 favorable. $5,660 favorable. $7,330 favorable. $8,030 favorable. $9,920 favorable. THE ANSWER IS NOT 8030 and I am not sure why
Meman
None
Direct Materials Purchases Budget Soda Company is the largest bottler in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The Soda Company, dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage into cans or plastic two-liter bottles. Assume that the estimated production for Brand 1 and Brand 2 two-liter bottles at the Wakefield, UK, bottling plant are as follows for the month of May: Brand 1 67,000 two-liter bottles Brand 2 51,000 two-liter bottles In addition, assume that the concentrate costs $70 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.1 pound per 100 liters of carbonated water in blending Brand 1 and 0.15 pound per 100 liters of carbonated water in blending Brand 2. Assume that two liters of carbonated water are used for each two-liter bottle of finished product. Assume further that two-liter bottles cost $0.075 per bottle and carbonated water costs $0.055 per liter. Prepare a direct…
Alpesh
Vishal
Sheridan Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,200 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales Cost of goods sold (all variable) Gross margin Operating expenses Operating income Unit Sales Sales revenue $ 220,000 Cost of goods sold $ 140,800 Assume that Sheridan Sports actually sold 1,900 volleyball kits during the year at a price of $102 per kit. Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Flexible Budget 79,200 70,000 9,200 LA Sales Volume Variance LA Static Budget

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