For June, Company "R" budgeted the following: total sales units: 5000 broken down as follows: C Product "A": 3000 unitssold; cm/unit of $10.20 Product "B" 2000 units sold; cm/unit of $8 For June, Company "R" achieved the following actualresults: total sales units: 4000 broken down as follows Product "A": 1000 units sold; cm/unit of $11 Product "B": 3000units sold: cm/unit of $7 Calculate the "sales quantity cm variance" for the month of June Question 54 options: $9860 F $9200 U $9860 U $9320 U Choose the correct option

Here we will explain the process step by step for calculating the sales quantity cm variance. 1.…

Answered: For June, Company "R" budgeted the…

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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The following sales were budgeted for the year: Product A Product B Product C Demand (units) 1,000 2,000 3,000 Selling price $15 $20 $30 Profit per unit $2 $5 $2 Actual sales for the year showed the following results: Product A Product B Product C Units sold 1,100 2,050 2,800 Sales value $17,050 $38,950 $86,800 Profit $3,080 $10,455 $6,160 What is the sales mix variance? $2,292 Adverse $1,845 Favorable $200 Favorable $50 Favorable
Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit) July August September October Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor vage rate. Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 40% in the month of the sale 60% in the following month $ 92 9,000 11,300 10,400 10,800 4 pounds $ 1.00 per pound 2.8 direct labor-hours $22.00 per direct labor- hour $ 1.50 per unit sold. $70,000 per month Raw materials purchases are paid 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs. The…
Kasson Company has budgeted units to be produced for the next five months as follows: budgeted units to be produced June 12,000 July 15,000 August 11,000 September 18,000 October 22,000 Kasson Company used the following information in creating its master budget for the year: 1. Ending direct materials inventory for each month should be equal to 140% of the next month's production needs. 2. Each unit produced requires 2.5 pounds of direct materials. 3. Direct materials are purchased for $2.30 per pound. Calculate the cost of direct materials budgeted to be purchased in June.
The following information pertains to the month of August. As part of the budgeting process, Shelley Company developed the following static budget for August. Shelley Company is in the process of preparing the flexible budget and understanding the results. Actual Flexible Static Results Budget Budget Sales volume (in units) 50,000 60,000 $1,000,000 $ Sales revenues Variable costs $1,200,000 900,000 780.000 2$ Contribution margin 220,000 300,000 158,000 $ 62,000 180.000 $ 120,000 Fixed costs Operating profit The flexible budget will report for fixed costs. O $900,000 O $600,000 O $180,000 O $150,000 O $160,000 %24
A company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Cost per Variable Cost per Month Unit Serviced Revenue $4,800 $1,100 $700 Wages expense $40,200 Materials expense Other expenses $29,600 When the company prepared its planning budget at the beginning of November, it assumed that 28 units would be serviced, however the actual number of units serviced in November was 26. Actual revenue during November was $131,500. The revenue activity variance is: O $6,700F. $9,600F. $9,600U. O $2,900U.
Morganton Company makes one product and provided the following information to help prepare its master budget: a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,800, 19,000, 21,000, and 22,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.40 per pound. e. Twenty five percent of raw materials purchases are paid for in the month of purchase and 75% in the following month. f. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is…
You are given the following budgeted and actual data for the Grey Company for each of the months January through June of the current year. In December of the prior year, sales were forecasted as follows: January, 100 units February, 95 units March, 102 units April, 107 units May, 114 units June, 122 units. In January of the current year, sales for the months February through June were reforecasted as follows: February, 90 units March, 102 units April, 102 units May, 104 units June, 117 units. In February of the current year, sales for the months March through June were reforecasted as follows: March, 97 units April, 102 units May, 99 units June, 117 units In March of the current year, sales for the months April through June were reforecasted as follows: April, 102 units May, 94 units June, 107 units In April of the current year, sales for the months May and June were reforecasted as follows: May, 84 units June, 102 units In May of the current year, sales for June were…
Compute the dollar amount of Direct Material "A" to be used in production during the year, given the following info: Budgeted Sales for the year = 640,000 units Estimated Beg. Inventory = 108,000 units Desired End. Inventory = 90,000 units The Quantities of Direct Materials expected to be used for each Unit of finished product are as follows: Material A = 0.5 lb. per unit @ $0.60 per lb. Material B 1.0 lb. per unit @ $1.70 per lb. Material C= 1.2 lb. per unit @ $1.00 per lb. O $186,600.00 $210,600.00 O$181,200.00 $240,000.00
ABC Company’s budgeted sales for June, July, and August are 12,800, 16,800, and 14,800 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,840 units. Required: Calculate the number of units to be produced in June and July.
am. 118.
During June, Tarras Corporation plans to serve 46,000 customers. The company uses the following revenueand cost formulas in its budgeting, where Q is the number of customers served. Revenue:$4.40Q Wages and salaries:$34,600 + $1.67Q Supplies:$0.87Q Insurance:$15,000 Miscellaneous expenses:$5,600 + $0.57Q Required:Prepare the company's planning budget for June. Show all your calculations and you may round youranswers to the nearest dollar.
Shaub Corporation made the following budget cost estimates for the upcoming month: Direct Labor = $10 per unit Direct Materials = $20 per unit Variable Manufacturing Overhead = $5 per unit Variable Selling and Administrative Costs = $12 per unit Fixed Manufacturing Overhead = $100,000 per month Fixed Selling and Administrative Costs = $250,000 1. The variable costs necessary to prepare a production budget total $ per unit. 2. The fixed costs necessary to prepare a production budget total $ per month.

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