(a) Prepare Bramble's flexible budget and actual income statement for the year. Sales volume Per unit Actual 51,700 Flexible Budget 51,700 Per unit Sales Variable costs: $14.50 $ LA $13.90 Direct materials 3.40 3.30 Direct labor 1.70 1.75 Variable-MOH 1.60 1.60 Variable SG&A 0.40 0.40 Contribution margin $7.40 $6.85 Fixed costs: Fixed-MOH Fixed SG&A Operating income $ Managers at Bramble, Inc. were cautiously optimistic about receiving their bonuses at year-end. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 9% meant bonuses for everyone. The production crew had been managing costs well but wasn't sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Actual Master Budget Sales volume (units) 51,700 44,000 Selling price $14.50 $13.90 DM cost/unit $3.40 $3.30 DL cost/unit $1.70 $1.75 Variable-MOH cost/unit $1.60 $1.60 Variable SG&A cost/unit $0.40 $0.40 Fixed-MOH cost $204,000 $194,100 Fixed SG&A cost $116,000 $111,600

(a) Prepare Bramble's flexible budget and actual income statement for the year. Sales volume Per unit Actual 51,700 Flexible Budget 51,700 Per unit Sales Variable costs: $14.50 $ LA $13.90 Direct materials 3.40 3.30 Direct labor 1.70 1.75 Variable-MOH 1.60 1.60 Variable SG&A 0.40 0.40 Contribution margin $7.40 $6.85 Fixed costs: Fixed-MOH Fixed SG&A Operating income $ Managers at Bramble, Inc. were cautiously optimistic about receiving their bonuses at year-end. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 9% meant bonuses for everyone. The production crew had been managing costs well but wasn't sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Actual Master Budget Sales volume (units) 51,700 44,000 Selling price $14.50 $13.90 DM cost/unit $3.40 $3.30 DL cost/unit $1.70 $1.75 Variable-MOH cost/unit $1.60 $1.60 Variable SG&A cost/unit $0.40 $0.40 Fixed-MOH cost $204,000 $194,100 Fixed SG&A cost $116,000 $111,600

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter14: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 3BE: Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the...

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Managers at Marigold, Inc. were cautiously optimistic about receiving their bonuses at year-end. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 13% meant bonuses for everyone. The production crew had been managing costs well but wasn’t sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Actual Master Budget Sales volume (units) 51,800 44,400 Selling price $14.30 $13.90 DM cost/unit $2.80 $2.70 DL cost/unit $1.75 $1.80 Variable-MOH cost/unit $1.40 $1.40 Variable SG&A cost/unit $0.60 $0.60 Fixed-MOH cost $186,000 $176,100 Fixed SG&A cost $123,000 $118,100 (a) Prepare Marigold’s flexible budget and actual income…
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