Exercise 21-5 (Algo) Preparing flexible budget performance report LO P1Nina Company prepared the following fixed budget for July using 7,760 units for budgeted sales. Actual sales were 7,460 units andactual costs are shown below.For Month Ended July 31SalesVariable costsDirect materialsDirect laborIndirect materialsSales commissionsTotal variable costsContribution marginFixed costs.Depreciation-MachinerySupervisor salaryInsuranceDepreciation Office equipmentAdministrative salaries iTotal fixed costsIncomeFixed BudgetVariableAmountper Unit$ 100355551541165$ 35Total FixedCost$ 70,67041,93010,3907,66033,900$164,550Fixed Budget(7,760 units)$ 776,000271,600116,40031,04085,360504,400$ 271,60070,67041,93010,3907,66033,900164,550$ 107,050Actual Results(7,460 units)$ 762,610276,160113,50029,24081,130500,030$ 262,58070,67043,16010,3907,66030,840162,720$ 99,860Prepare a flexible budget performance report for July at activity level of 7,460 units. Show variances between budgeted and actualamounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Prepare a flexible budget performance report for July at activity level of 7,460 units. Show variances between budgeted and actualamounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)For Month Ended July 31SalesVariable costsDirect materialsDirect laborIndirect materialsSales commissionsTotal Variable CostsContribution marginFixed costsDepreciation MachinerySupervisory salaryInsuranceDepreciation Office equipmentAdministrative salariesTotal Fixed CostsIncomeNINA COMPANYFlexible Budget Performance ReportFlexibleBudget(7,460 units)0ActualResults.(7,460 units)00VariancesFavorable/Unfavorable

The flexible budget is prepared for actual level of production using the standard rates. The…

Exercise 21-5 (Algo) Preparing flexible budget performal Nina Company prepared the following fixed budget for July using 7,760 units for budgeted sales. Actual sales were 7,460 units actual costs are shown below. For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total variable costs Contribution margin Fixed costs Depreciation-Machinery Supervisor salary Insurance Depreciation Office equipment Administrative salaries Total fixed costs Fixed Budget Variable Amount per Unit $ 100 35 15 4 11 65 $ 35 Total Fixed Cost $ 70,670 41,930 10,390 7,660 33,900 $164,550 Fixed Budget (7,760 units) $ 776,000 271,600 116,400 31,040 85,360 504,400 $ 271,600 70,670 41,930 10,390 7,660 33,900 164,550 Actual Results (7,460 units) $ 762,610 276,160 113,500 29,240 81,130 500,030 $ 262,580 70,670 43,160 10,390 7,660 30,840 162.720

Exercise 21-5 (Algo) Preparing flexible budget performal Nina Company prepared the following fixed budget for July using 7,760 units for budgeted sales. Actual sales were 7,460 units actual costs are shown below. For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total variable costs Contribution margin Fixed costs Depreciation-Machinery Supervisor salary Insurance Depreciation Office equipment Administrative salaries Total fixed costs Fixed Budget Variable Amount per Unit $ 100 35 15 4 11 65 $ 35 Total Fixed Cost $ 70,670 41,930 10,390 7,660 33,900 $164,550 Fixed Budget (7,760 units) $ 776,000 271,600 116,400 31,040 85,360 504,400 $ 271,600 70,670 41,930 10,390 7,660 33,900 164,550 Actual Results (7,460 units) $ 762,610 276,160 113,500 29,240 81,130 500,030 $ 262,580 70,670 43,160 10,390 7,660 30,840 162.720

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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Print Item Static Budget versus Flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Hagerstown CompanyMachining DepartmentMonthly Production Budget Wages $2,250,000 Utilities 72,000 Depreciation 36,000 Total $2,358,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced May $1,600,000 40,000 June 1,950,000 48,000 July 2,200,000 52,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for May–July have been significantly less than the monthly static budget of $2,358,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget…
Check my w QS 21-1 (Algo) Flexible budget performance report LO P1 Beech Company produced and sold 112,000 units in May. For the level of production in May, budgeted amounts were sales, $1,260,000; variable costs, $846,000; and fixed costs, $260,000. The following actual results are available for May. Actual Results Sales (112,000 units) Variable costs Fixed costs $ 1,237,000 814,500 260,000 Prepare a flexible budget performance report for May. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) BEECH COMPANY Flexible Budget Performance Report For Month Ended May 31 Flexible Budget Actual Results Favorable/ Unfavorable $ 1,260,000 Sales Variable costs 846,000 Contribution margin 414,000 0 Fixed costs 260,000 260,000 Income 154,000 $ (260,000) Prev ere to search s $ Variances 1 of 10 ⠀⠀⠀ Unfavorable Favorable Favorable No variance Favorable Next >
Graded HW i Fixed Budget For Year Ended December 31 $ Sales 3,171,000 Costs Direct materials 996,600 Direct labor 226,500 Sales staff commissions 60,400 Depreciation-Machinery 295,000 Supervisory salaries 203,000 Shipping 226,500 Sales staff salaries (fixed annual 250,000 amount) Administrative salaries 556,450 Depreciation-Office equipment 198,000 Income $ 158,550 Saved Required: 1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple budgeted income statement if 18,100 units are sold. Complete this question by entering your answers in the tabs below. Req 1 Req 3 and 2 Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. Sales Variable costs Direct materials Direct labor Sales staff commissions Shipping Total variable costs Contribution margin Fixed costs PHOENIX COMPANY Flexible Budgets For Year Ended December 31 Flexible…
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Static Budget versus Flexible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: Niland CompanyMachining DepartmentMonthly Production Budget Wages $663,000 Utilities 38,000 Depreciation 64,000 Total $765,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced January $721,000 128,000 February 691,000 117,000 March 657,000 105,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been significantly less than the monthly static budget of 765,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the…
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Direct manufacturing labour budget Manufacturing overhead budget Ending inventories budget (direct materials and finished goods) Cost of goods sold budget For each budget, prepare by product (Premium and De Luxe) and in total.
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