EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $510 budgeted price and S230 budgeted variable cost. Each billable hour of staff time has a budgeted price of S140 and a budgeted variable cost of S70. For the most recent year, the partnership budget called for 8,900 billable partner-hours and 33,750 staff-hours. Actual results were as follows. Partner revenue S 4,174,000 8,400 hours Staff revenue S 4,650,000 33,000 hours Required: a. Compute the sales price variance. b. Compute the total sales activity variance. c. Compute the total sales mix variance. d. Compute the total sales quantity variance. (For all requirements, do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar)

EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $510 budgeted price and S230 budgeted variable cost. Each billable hour of staff time has a budgeted price of S140 and a budgeted variable cost of S70. For the most recent year, the partnership budget called for 8,900 billable partner-hours and 33,750 staff-hours. Actual results were as follows. Partner revenue S 4,174,000 8,400 hours Staff revenue S 4,650,000 33,000 hours Required: a. Compute the sales price variance. b. Compute the total sales activity variance. c. Compute the total sales mix variance. d. Compute the total sales quantity variance. (For all requirements, do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar)

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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Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,000 client-visits, but its actual level of activity was 3,990 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November. Data used in budgeting: Revenue Personnel expenses Medical supplies occupancy expenses Administrative expenses Total expenses Actual results for November: Revenue Personnel expenses Medical supplies occupancy expenses Administrative expenses Multiple Choice $832 F $832 U $760 U Fixed element Variable element per per month client-visit $36.80 The spending varlance for medical supplies in November would be closest to: $760 F $30,900 1,900 9,000 7,300 $49,100 $147,032 $ 77,944 $ 31,460 $ 21,673 $ 7,859 $11.80 7.20 3.30 0.20 $22.50
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: $73,440 101,520 Ben Testerman The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $41,040 cash for a 19% interest. Dennis Overton 2. Net income of $280,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $60,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell. 3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank. Angel Investor Associates Statement of Partnership Equity For the Year Ended December 31, 20Y5 Ben Testerman, Capital Balances,…
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The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: Dennis Overton $180,000 Ben Testerman 120,000 The following additional partner transactions took place during the year: In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest. Net income of $150,000 was earned in 2015. In addition, Dennis Overton received a salary allowance of $40,000 for the year The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5.
Provided that you have received start-up funding of $250 000.00 for any business of your choice, prepare a forecast where costs associated with required business resources are outline and create a budget for the first two months of the business. Calculate the break-even point.
What is the equation budget for each of the following 1- The first transaction means that Safia (the owner) entered a capital of $ 10,000 in cash to start the business. An asset (cash) column is created to record this transaction. The effect of the deal is that the assets and equity will increase by $ 10,000 2- The second transaction states that the goods were purchased on credit from Anees (creditor / supplier). The effect will increase the business assets (stocks) as well as liabilities (creditor) by $ 300 because the company owes the money to Anis. 3- Salaries are work expenses. When the cash repayment is made, the asset (cash) will be reduced and the equity (equity) also becomes lower by $ 3000 due to this cash advance. 4- Borrowing is like a bank loan, as the business needs money in its operations. The effects of this transaction are that the assets (cash) and liabilities column (bank loan) are also increased by $ 2000. 5- The cash column will include when the company purchases $…
Render Co. CPA Is preparing activity-based budgets for 2019. The partners expect the firm to generate billable hours for the year as follows: