Newspaper Delivery Co. delivers newspapers. In 2015, the company budgeted for 1,000 deliveries, but its actual level of activity was 1,200 deliveries. The company has provided the following data concerning its budget and actual results for 2015. Assume that the wages of a neighbor boy are a variable cost and bike rental is a fixed cost. Static Budget Actual Results Revenue $3,000 $3,500 Costs: Wages of a neighbor boy $1,000 $1,300 Bike rental $200 $175 Total costs $1,200 $1,475 Net income $1,800 $2,025 The activity variance for 'wages of a neighbor boy' would be: A. $300 U B. $200 F C. $200 U D. $0

Newspaper Delivery Co. delivers newspapers. In 2015, the company budgeted for 1,000 deliveries, but its actual level of activity was 1,200 deliveries. The company has provided the following data concerning its budget and actual results for 2015. Assume that the wages of a neighbor boy are a variable cost and bike rental is a fixed cost. Static Budget Actual Results Revenue $3,000 $3,500 Costs: Wages of a neighbor boy $1,000 $1,300 Bike rental $200 $175 Total costs $1,200 $1,475 Net income $1,800 $2,025 The activity variance for 'wages of a neighbor boy' would be: A. $300 U B. $200 F C. $200 U D. $0

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

See similar textbooks

Similar questions

please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Budgeted monthly production is 2,500 units. The production volume variance is written off to the cost of goods sold account. Other information for the month includes: Variable manufacturing costs $20.00 per unit Variable marketing costs $ 3.00 per unit Fixed manufacturing costs per month $ 17,500 Administrative expenses, all fixed $15.00 per unit 1. What is cost of goods sold using absorption costing?
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per Month Course per Student Instructor wages $ 2,910 Classroom supplies $ 280 $ Utilities $ 85 1,230 $ Campus rent 5,100 $ Insurance 2,100 $ $ 43 $ 5 3,700 Administrative expenses For example, administrative expenses should be $3,700 per month plus $43 per course plus $5 per student. The company's sales should average $900 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September were as follows: Actual Revenue $ 53,800 Instructor wages $ 10,920…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Cost per Instructor wages Classroom supplies Month Course $ 2,930 Student $ 270 $ 75 Utilities $ 1,220 Campus rent $ 4,900 Insurance $ 2,400 Administrative expenses $ 3,600 $ 44 $5 For example, administrative expenses should be $3,600 per month plus $44 per course plus $5 per student. The company's sales should average $870 per student. The company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies…
Answer with detailed explanation please,
please answer do not image.
I am unsure if this is correct. Thanks!
iny Tots Daycare Centre provides daycare for children Mondays through Fridays. Thebusiness had $140,000 of net income in 2015, when 50 students were enrolled and data forvariable costs per child and total fixed costs were as follows:Cost Schedule:Variable Costs: Lunch & snacks $1,000Education Supplies 750Other supplies (toiletries etc.) 250$2,000Fixed Costs: Rent $20,000Utilities 3,000Insurance 3,000Salaries 30,000Miscellaneous 4,000$60,000Required:a) Compute the charge per child, using the equation method.b) What is the contribution per child? What is the contribution margin ratio?c) Calculate Tiny Tot’s break-even point in number of children and in sales dollars.
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports–the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages ... $2930 Classroom supplies ... $290 Utilities ... $1210 $85 Campus rent ... $4,900 Insurance ... $2400 Administrative expenses... $3,600 $45 $7 For example, administrative expenses should be $3,600 per month plus $45 per course plus $7 per student. The company’s sales should average $870 per student. The actual operating results for September appear below: The company planned to run four courses with a total of 60 students ; however , it actually ran four…
am. 211.
Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Planning Budget Flexible Actual Results Budget Courses Students 42 Revenue 32,400 Expenses: Instructor wages 9,080 Classroom supplies 8,540 Utilities 1,530 Campus rent 4,200 Insurance 1,890 Administrative expenses 3,790 Total expense 29,030 Net operating income 3,370 3. %24 %24
Joseph is working on the budget for his summer window-washing business, trying to figure out what his total costs are going to be for the season. He has monthly data from last summer, so he decided to start with that. Using the observations below, use the high-low method to estimate a total monthly cost function for Joseph's business. Month 1 2 3 Number of Labor Hours Spent Y = $ 60 105 85 (Round answers to 2 decimal places, e.g. 15.25.) X + $ Total Cost $196 $322 $250
Ever Clean Company provides gutter cleaning services to residential clients. Overhead is allocated based on direct labor-hours (DLH). The owner, Joanne Clark, estimates that her gutter cleaners will work a total of 1,000 jobs during the year. Each job averages 600 feet of gutter surface and requires 12 direct labor-hours. Clark pays her gutter cleaners $15 per hour. The following table presents the budgeted overhead costs for 2018: Variable costs Supplies ($6.50 per DLH) Fixed costs (to support capacity of 12,000 DLH) Indirect labor Depreciation Other Total budgeted costs The budgeted overhead rate (USD/DLH) is closest to O A. 5.50 O B. 12.00 O C. 6.50 $ 78,000 25,000 17,000 24,000 $144,000