Top managers of Juda Industries predicted 2025 sales of 14,500 units of its product at a unit price of $10.00. Actual sales for the year were 14,300 units at $13.00 each. Variable costs were budgeted at $3.20 per unit, and actual variable costs were $3.30 per unit. Actual fixed costsof $49,000 exceeded budgeted fixed costs by $2,000.Prepare Juda Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a 0 for any zero balances.Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input field blank.)Juda IndustriesFlexible Budget Performance ReportFor the Year Ended December 31, 2025UnitsSales RevenueVariable CostsContribution Margin12345(1) - (3)(3)-(5)BudgetAmountsFlexibleActualPer UnitResultsBudgetVarianceFlexibleBudgetSalesVolumeVarianceStaticBudget

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

Answered: lop managers of Juda Industries…

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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A 100-room hotel budgeted an occupancy of 75% and an average room rate of $100 per room for year 2020. Actual occupancy was 50% and average room rate was $90. Assume 365 days in a year. Find the variance in total room revenue, variance in rooms sold and variance in average room rate, and then use the variance analysis matrix to find the constituents in total rooms revenue variance by breaking it up into price variance and quantity variance.
Required Information [The following information applies to the questions displayed below.] The fixed budget for 21,300 units of production shows sales of $489,900; variable costs of $63,900; and fixed costs of $144,000. The company's actual sales were 27,300 units at $580,900. Actual variable costs were $113,400 and actual fixed costs were $138,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no variance.) Contribution margin Flexible Budget Performance Report Flexible Budget Actual Results Variances Favorable/ Unfavorable
Wildhorse Corporation budgeted $132,000 for its fixed-MOH cost going into the current year. Its actual fixed-MOH cost came in on budget, but it produced and sold 2,500 units instead of the budgeted 3,300. Wildhorse's actual variable manufacturing costs came in on budget at $51 per unit. What is Wildhorse's fixed-MOH volume variance for this year, recognizing that it uses standard costs within is absorption costing system? What is the company's initial COGS (before any variance is considered) and also its adjusted COGS after writing off that variance directly to COGS? Fixed-MOH volume variance $ Unadjusted COGS $ Adjusted COGS $ Unfavorable
The master budget at Western Company last period called for sales of 226,500 units at $10.50 each. The costs were estimated to be $3.90 variable per unit and $226,500 fixed. During the period, actual production and actual sales were 231,500 units. The selling price was $10.60 per unit. Variable costs were $6.00 per unit. Actual fixed costs were $226,500. Required: Prepare a profit variance analysis. (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.)
Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $12 each and used a budgeted selling price of $12 per unit. Actual Budgeted Units sold 42,000 units 36,000 units Variable costs $168,000 $151,000 $58,000 Fixed costs $45,000 What is the static-budget variance of revenues? O A. $72,000 unfavorable OB. $6,000 unfavorable O C. $72,000 favorable O D. $4,000 favorable O Time Re esc
Carson CPAS specializes in preparing 1040EZ returns for low-income clients. The firm charged $100 per return this year and budgeted $100 per return. Additional information for the firm includes: Actual Budgeted 800 750 $37,500 12,000 Returns processed Variable costs Fixed costs Prepare Carson's static budget and the static budget performance report. Note: Do not use negative signs with any of your answers. Note: Indicate whether the variance is favorable (F) or unfavorable (U) using the drop-down menu in the last column next to the variable amount. Budgeted returns Actual returns Returns processed variance Revenue Variable costs Fixed costs Net income $36,000 12,500 $ $ Actual Results 0 For U $ 0$ Budget Results $ 0$ Variances 0 0 0 0 For U ♦ + >
In analyzing company operations, the controller of the Carson Corporation found a $250,000 favorable flexible budget revenue variance. The variance was calculated by comparing the actual results with the flexible budget. This variance can be wholly explained by: (CMA adapted) Multiple Choice О the total flexible budget variance. О the total static budget variance. О changes in unit selling prices. changes in the number of units sold.
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Required information [The following information applies to the questions displayed below.] The fixed budget for 20,600 units of production shows sales of $597,400; variable costs of $61,800; and fixed costs of $143,000. The company's actual sales were 26,500 units at $720,500. Actual variable costs were $113,100 and actual fixed costs were $133,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Contribution margin Flexible Budget Performance Report Flexible Budget Actual Results Variances Favorable/ Unfavorable
Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $166,440 budgeted expenses include $113,960 in variable expenses for desks and $18,480 in variable expenses for chairs, as well as $34,000 fixed expenses. The actual expenses include $35,600 fixed expenses. List fixed and variable expenses separately. Fixed Budget Actual Results Variances Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses 148 154 56 64 $192,500 $6,020 F 5,040 F 9,220 U $186,480 28,560 166,440 33,600 175,660 Income from operations $ 48,600 $ 50,440 $1,840 F Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. X Answer is complete but not entirely correct. BUSINESS SOLUTIONS Flexible Budget Performance Report For Quarter Ended June 30 Flexible Actual Results Variance Fav./Unf. Budget Desk sales $ 186,480 $ 192,500 O $ 6,020 X Unfavorable O Chair sales…
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