Kimberly Corporation started the year expecting to produce and sell 142,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that-155,000 units. Needless to say, owners Eli and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Sales Variable costs: DM DL Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Actual Income $2,635,000 465,233 611,940 288,765 116,250 1,152,812 577,530 428,000 $147,282 Flexible Budget Master Budget $2,449,500 426,000 553,800 227,200 106,500 1,136,000 568,000 403,000 $165,000 In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts.
Kimberly Corporation started the year expecting to produce and sell 142,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that-155,000 units. Needless to say, owners Eli and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Sales Variable costs: DM DL Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Actual Income $2,635,000 465,233 611,940 288,765 116,250 1,152,812 577,530 428,000 $147,282 Flexible Budget Master Budget $2,449,500 426,000 553,800 227,200 106,500 1,136,000 568,000 403,000 $165,000 In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kimberly Corporation started the year expecting to produce and sell 142,000 units of its super-insulating coffee mugs, but it ended
the year having produced and sold even more than that-155,000 units. Needless to say, owners Eli and his sister Anna were thrilled to
have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see
the final year-end financial statements and share the great news with their crew. The actual results, along with the original master
budget for the year, are as follows.
Sales
Variable costs:
DM
DL
Variable-MOH
Variable SG&A
Contribution margin
Fixed costs:
Fixed-MOH
Fixed SG&A
Operating income
Actual Income
$2,635,000
465,233
611,940
288,765
116,250
1,152,812
577,530
428,000
$147,282
Flexible Budget
Master Budget
$2,449,500
426,000
553,800
227,200
106,500
1,136,000
568,000
403,000
$165,000
In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts.
Transcribed Image Text:Recreate Kimberly's standard cost card for DM, DL, variable-MOH, and fixed-MOH. Specify quantity and price standards, along
with a total standard cost per unit for each. Additional information pertaining to each resource follows.
●
●
(Round answers to 2 decimal places, e.g. 15.25.)
Each mug was expected to use 2 pounds of DM.
Each mug was expected to use 0.30 hours of DL.
Variable- and fixed-MOH costs are applied based on pounds of DM.
Standards
DM
DL
Variable-
MOH
Fixed-
MOH
Tout
Quantity
dia
Measurement
LA
x Price
Measurement
LA
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