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

See similar textbooks

Similar questions

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
Consider the following information from the sales budget (Sales in units) Mar Jan 8,500 Feb 8,000 Nov Dec 16,000 Oct 6,000 18,000 5,000 Sales Additional information: Sales price: $8.00; Credit sales = 80.0% of total sales Ending inventory requirements: Production budget 40.0%; Purchases budget %3D %3D 10.0% Material required for each product 6.0 kilograms of recycled aluminum; the price per kilogram of recycled aluminum = $0.80 !! %3! Compute the cost of material purchased in November. $74,496 $80,544 $82,560 $85,440
Maulana Sdn Bhd (MSB) manufactures and sells two types of products: Pastry roller and Pastry puff Each unit of product consumes two types of materials, butter and cheese. MSB is preparing its annual budget for the year ending December 31, 2018. The Assistant Accountant provides the following data: Pastry roller Pastry puff 55,000 Sales unit 65,000 Unit selling price RM30 RM20 MSB decided that the beginning and ending inventory for the year 2018 are as follow: Product Beginning inventory(units) Ending inventory(units) Pastry roller Pastry puff +The following materials are needed for the production of pastry roller and pastry puff: 8,000 9,000 5,000 4,000 Pastry roller Beginning inventory (kg) inventory (kg) | 272,000 Materials: Pastry puff Ending 10 kg 8 kg 290,000 Butter Cheese |4 kg 3 kg 60,000 | 41,000 Price per ka Materials: Butter RM2.00 Cheese RM8.00 Direct labour per unit and direct labour coBer unit is given below: Hours needed Rate hour per Pastry roller 2 hours Pastry puff 1.5…
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
Please do not give solution in image format thanku
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

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS