Munoz Company has provided the following Year 2 data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other Fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Required $ 513,000 204,000 47,000 3,100 16,600 24,200 1,300 680 7,800 Unfavorable 4,800 Favorable 1,700 Unfavorable 1,500 Unfavorable 230 Favorable 390 Favorable 140 Unfavorable 110 Favorable Prepare a budgeted and actual Income statement for Internal use. MUNOZ COMPANY Internal Income Statement for Year 2 Sales Variable expenses: Product costs Selling expenses Other expenses Contribution margin Fixed expenses: Product costs Selling expenses Other expenses Operating income (loss) Interest expense Budget Actual 13

Munoz Company has provided the following Year 2 data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other Fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Required $ 513,000 204,000 47,000 3,100 16,600 24,200 1,300 680 7,800 Unfavorable 4,800 Favorable 1,700 Unfavorable 1,500 Unfavorable 230 Favorable 390 Favorable 140 Unfavorable 110 Favorable Prepare a budgeted and actual Income statement for Internal use. MUNOZ COMPANY Internal Income Statement for Year 2 Sales Variable expenses: Product costs Selling expenses Other expenses Contribution margin Fixed expenses: Product costs Selling expenses Other expenses Operating income (loss) Interest expense Budget Actual 13

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 breakeven point is: Multiple Choice The sales volume at which the total contribution margin exceeds total variable costs. The sales volume at which revenues equal total cost plus an operating profit of zero. The sales volume at which revenues equal fixed cost and profit is zero. The sales volume at which revenues equal variable cost and profit is zero. The point at which revenues meet the budget target.
Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 33,900 hats, of which 32,200 vwere sold. Operating data for the month are summarized as follows: Sales $296,240 Manufacturing costs: Direct materials $176,280 Direct labor 47,460 Variable manufacturing cost 20,340 Fixed manufacturing cost 20,340 264/420 Selling and administrative expenses: Variable $16,100 Fixed 11,750 27,850 During August Head Gear Inc, manufectured 30,500 hats and sold 32,200 hats. Operating data for August are summarized as folovsi Sales $296,240 Manufacturing costs: Direct materials $158,600 Direct labor 42.700 Variable manufacturing cost 18,300 20,340 239,940 Fixed manufacturing cost Selling and administrative expenses: $16.100 Variable 11.750 27 850 Fixed Required:
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Based on the attached image, what is the company's sales-volume variance?
1. What is the cost price variance? 2. What is the sales volume variance? 3. What is the sales mix variance?
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Highlight T Strikethrough Calculator A company sells two products and has calculated the following information relating to sales variances: Sales mix variance = $1,000 Sales price variance = $200F Sales volume variance = $1,400A There is no indication as to whether the sales mix variance is adverse or favourable but it was caused by a lower proportion of the more profitable item being sold. What is the sales quantity variance? $200 Adverse $400 Adverse $2,400 Adverse $400 Favourable
Variable Costing Income Statement The following data were adapted from a recent income statement of The Bluth Company: Sales Operating costs: Cost of products sold Marketing, administrative, and other expenses Total operating costs Operating income Cost of products sold Marketing, administrative, and other expenses The Bluth Company Variable Costing Income Assume that the variable amount of each category of operating costs is as follows: Statement (assumed) (in millions) (in millions) $162,030 Fixed costs: $(77,770) (51,850) a. Based on the data given, prepare a variable costing income statement for Bluth, assuming that the company maintained constant inventory levels during the period. $(129,620) $32,410 would be (in millions) $43,750 21,060 b. If the Bluth company reduced its inventories during the period, what impact would that have on the operating income determined under absorption costing? If the Bluth company reduced its inventories during the period, then the cost of products…
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Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,300 units and sold 2,800 units. The following income statement was prepared, based on the variable costing concept: Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, March 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Variable costing Absorption costing $508,200 (77,000) $231,000 72,800 $896,000 (431,200) $464,800 (106,400) $358,400 (303,800) $54,600 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
The following data are for Elm Leaf Apparel: East Sales volume (units): Product XX Product YY Sales price: Product XX Product YY Variable cost per unit: Product XX Product YY 6,300 3,300 $12 $15 $7 $9 West 5,300 7,100 $13 $14 $7 $9 a. Determine the contribution margin for Product YY. $fill in the blank 1 b. Determine the contribution margin for the West Region. $fill in the blank 2
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