Prepare a flexible budget performance report that shows the company's revenue and spending varlances and activity varlances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.)
Q: How much is charged to Retained Earnings? a. 1,250,000
A: 1. Meaning of Bonus shares: Bonus shares means additional shares issued to existing shareholders wi...
Q: On January 1, 2019 Pink Corp. sold a machine for $7,400 to slink Corp., its wholly-owned subsidiary....
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets ...
Q: Exercise 7-11 (Algo) Unearned revenues—customer deposits LO 3 Skip to question [The following inf...
A: Journal Entry The basic process of accounting work is to journalize the required transaction into de...
Q: Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner,...
A: Solution Partnership is an arrangement between two or more people to oversee business operations and...
Q: Pueblo Company sells a product for $88. Variable cost is $32. Pueblo could accept a special order fo...
A: Solution:- Given, Pueblo company sells product for = $88 Variable cost = $32 Pueblo could accept a s...
Q: Bulldogs Inc., a corporation that can only legally issue ordinary shares with par value, recently co...
A: Par Value - Par Value in the accounting means stated value or face value. It is calculated by - = Le...
Q: How are conflicts between the shareholders and the management created? Which of the following is mos...
A: Management group might be more ready to take on more significant levels of chance, while shareholder...
Q: Bulldogs Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cas...
A: Average amount of account Receivable = Days of sales outstanding x Sales / 360 Days of Sales Outstan...
Q: On September 30,2021, when the carrying amount of the assets of a major subsidiary was P70,000,000, ...
A: Discontinued operations are accounting words that refer to parts of a company's operations that have...
Q: The carrying cost curve and ordering cost curve of Bulldogs Inc.'s inventory intersect at 3,50 units...
A: the concept of economic order quantity for me is applicable where there is ideal order quantity. is ...
Q: On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration inclu...
A: A non-controlling interest, also known as a minority interest, is an ownership position whereby a sh...
Q: How is the beginning value for the second year got from the table below
A:
Q: On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ expec...
A: Solution: As shares are expected to be sold with in a year, therefore investment should be classifie...
Q: On January 1, 2021, Parent Co. acquired 80% of Subsidiary Inc.’s outstanding stocks for P1,600,000 c...
A: A consolidated balance sheet is a financial statement that reflects the financial status of a parent...
Q: the assets and liabilities of R were stated at their fair values when A acquired it's 80% interest a...
A: Computation of total retained earnings Opening balance of retained earnings + retained earnings of A...
Q: On January 1, 2021, Parent Co. acquired 80% of Subsidiary Inc's outstanding stocks for P1,600,000 ca...
A: Total Assets = Parents asset after consolidation + Fair value of identifiable assets acquired + Good...
Q: Golf Corporation estimates that its production for the coming year will be 25,000 units, which is 90...
A: GIVEN Golf Corporation estimates that its production for the coming year will be 25,000 units, which...
Q: The process of selling a promissory note to a bank at any time before maturity is known as _____ a n...
A: Promissory Note: It is a kind of financial instrument that comprises a written commitment made by on...
Q: Which of the following statement is correct?
A: Promissory note is the note which is received by the giver of the asset or received by the lender of...
Q: Would a deep discount without underwriting be preferable to save the expense of the underwriting fee...
A: In this question , we will discuss about underwriting fees and dilution of EPS and also that it is p...
Q: Bulldogs Inc. wants to analyze its variances in its actual and budgeted operation. There is no diffe...
A: Sale price variance = (Actual sales price per unit - Budgeted sales price per unit) x Actual no. of ...
Q: Rob Rote, the president and CEO of RRR Waste Management, was recently hospitalized, suffering from e...
A: Business Ethics: Implementing proper corporate rules and procedures in the face of potentially conte...
Q: In which of the following scenarios does the basic Economic Order Quantity model can be applied? * O...
A: Lets understand the basics. Economic order quantity(EOQ) is a quantity at which ordering cost and ca...
Q: Under IAS 19 Employee Benefits, how is actuarial gain or loss handled? amount falling outside th...
A: IAS 19 deals with the employee benefits. It includes the pension, benefit plans and gratuity etc.
Q: If Bulldogs' current liabilities are P1,300,000, the firm's * Bulldogs Inc. has the following curren...
A: Acid test ratio and current ratios are liquidity ratios. They are used to determine a company’s abil...
Q: Several years ago. cosmetics manufacturer Elizabeth Arden announced its decision to cancel the launc...
A: The cash outflows for the costs that were already incurred in past are termed as sunk costs and amou...
Q: s as: Inflow or Outflow. If neither, indicate Not Applicable. Particulars Amount Classificat...
A: outflow is is the decrease of cash. inflow is increase in the cash balance. when there is purchase t...
Q: When share options granted vest base on a service condition (ifrs2) a. Total fair value of the sha...
A: When Share options granted vest base on a service condition as per IFRS 2 Share based payments Share...
Q: Methods of controlling various elements of working capital are
A: Effective working capital management optimizes the operating cycle , minimize the cost of working c...
Q: David James is a cost accountant and business analyst for Doorknob Design Company (DDC), which manuf...
A:
Q: Bulldogs Inc. has a variable cost ratio of 20% and a 10% receivable financing cost. The firm is plan...
A: Following is the calculation of Accounts Receivable balance under old credit standard.
Q: Bulldogs Inc. has forecasted that its net income will be P520,000. The company has an debt-to- equit...
A: Under residual model, amount of dividend paid to common stockholders is the balance of Net Income af...
Q: Bulldogs Inc. wants to analyze its variances in its actual and budgeted operation. · There is...
A: Sales price variance is the difference between Actual Sales and Budgeted sales Estimated by the com...
Q: What reduction in average collection time would be needed to justify the lock-box system? (Use a 360...
A: Average collection period is number of days it takes for company to collect its receivable from cust...
Q: Items 21 to 27 are based on the following information: The balance sheet for the Litex Corporation o...
A: All Notes discounted at the beginning of the year got matured during the year. However, P30000 has n...
Q: average total assets 305,000 turnover 4.0 What is total sales
A: Total assets = 305,000 Asset turnover ratio = 4.0
Q: Pueblo Company sells a product for $88. Variable cost is $32. Pueblo could accept a special order fo...
A: The total cost of production of a good comprises the total fixed cost of production and the total va...
Q: Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your...
A: In the given problem, the original value or cost and TWDV or tax written down value is given for the...
Q: Starfax, Inc., manufactures a small part that is widely used in various electronic products such as ...
A: Year 1 Year 2 Year 3 Net income/(loss) under variable costing 30000 -100000 30000 Add/(Deduct)...
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below S...
A: Solution 1: Contribution Margin income Statement (7650 units) Particulars Total Per unit Sale...
Q: Pledged Assets : BCV ERV 60,000 41,600 32,000 133,600 Plant, property, and equipment (PPE) Merchandi...
A: Assets not pledged ERV Free Assets 32000 Asset...
Q: The economic order quantity of Bulldogs Inc. is 1,000 unit. They sold their sole product for a selli...
A: ECONOMIC order quantities is a order quantity which there is minimum holding and carrying cost invol...
Q: Bulldogs Inc. has sales of P3,000,000. Its credit period and average collection period are both 30 d...
A: Profits with increase in sales Sales - cost of products - carrying cost - bad debts expenses. P3300,...
Q: The following selected account data is taken from the records of Reese Industries for 2019. Assume t...
A: Income statement: The income statement shows the company's revenues and expenses earned during the p...
Q: Bulldogs Inc. recently reported net income of P5,000,0000. The firm has P40,000,000 total assets. Ne...
A: The increase in retained earnings is calculated as change in net income multiplied by the retention ...
Q: Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respec...
A: Solution:- Preparation of the journal entry to record Daggett’s withdrawal as follows under:- Introd...
Q: How much is the consolidated net income? How much is the consolidated retained earnings at December...
A: Growth Corporation acquired an 70% interest in Expanded Company on January 1, 2022 for P245,000. The...
Q: NEKO Inc., a corporation that issues ordinary shares with par value, completed a 2-for-1 stock split...
A: New par value per share = Current par value per share x 1/ stock split ratio where, Current par valu...
Q: Which of the following changes the total shareholder's equity balance? Issuance of share certifica...
A: shareholders holds share of the company, shareholder may be equity share holders of preference share...
Q: Calculate the retained earnings of P Company immediately after the combination:
A: Net assets of S company = Total assets - total liabilities = P 8,000,000 - P 2,000,000 = P 6,000,0...
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 6.5 (LO 1) Preparing a performance report Refer to the information about Adarmes Adventures given in Exercise 6.4. Alexis King chose to prepare a static budget based on sales of 1,800 canoes. Actual sales were 1,850 canoes at a price of $640 each. The company incurred the following costs for the year: Direct material Direct labor Variable overhead Fixed overhead Total $413,700 205,200 167,800 150,000 $936,700 Required Prepare a performance report for the year that shows the flexible budget and sales volume variances.II. Wongtien Electronics Corp. in Hong Kong, SAR, China, manufactures tablets, laptops and desktop PCs. Wongtien currently operates a standard absorption costing system. Budgeted information for next year is given below (currency in one thousand Hong Kong Dollars, HK$000): Desktop PCs 9,880 2,200 800 Products Sales revenue Tablets 3,640 800 300 Laptops 12,480 2,800 Total 26,000 5,800 2,300 Direct material Direct labor Fixed production overheads 1,456 1,084 4.992 3.488 3,952 2,928 10,400 7,500 Gross profit Fixed production overheads are currently absorbed based on a percentage of sales revenue. Wongtien is considering changing to an activity-based costing system. The main activities and their associated cost drivers and overhead cost have been identified as follows: Cost driver Production overhead cost Activity Manufacturing scheduling wNumber of orders Parts handling Assembly Software installation and testing Packaging 162 Number of parts Assembly time wNumber of software applications…Rahapuka Ltd is a manufacturing company which manufacturers and assembles car components. The following budgeted information relates to Rahapuka Ltd for the forth coming period. Products A1 B2 C3 '000 '000 '000 Sales and production (units) 50 40 30 N$ N$ N$ Selling price (per unit) 45 95 73 Prime costs (per unit) 32 84 65 Hours Hours Hours Machine department (machine hours per unit) 2 5 4 Assembly department (direct labour hours per unit) 7 3 2 Overheads can be re-analysed into 'cost pools' as follows; cost pool N$ '000 Cost driver Quantity for the period Machining services 357 Machine hours 420.000 Assembly services 318 Direct labour hours 530.000 Set up costs 26 Set ups 520 Order processing 158 Customer orders 32.000 Purchasing 84 Suppliers' orders 11.200 You have also been provided with the following estimates for the period A1 B2 C3 Number of set ups 120 200 200 Customer orders 8000 8000 16000 Suppliers' orders 3000 4000 4200…
- Task 2 (Budgeting) Aqua Safe produces water purifiers for domestic use. The production expenses for the production of 5,000 units of water purifiers in its factory is given in Table T2: Materials Labour Variable Overheads Fixed Overheads Table T2 Administrative Expenses (5% Variable) Selling Expenses (20% Fixed) Distribution Expenses (10% Fixed) Total Cost of Sales (for 5,000 units) 4200 2100 1400 900 1000 570 480 10650 You are required to prepare a flexible budget for the production of 7000 units and 14000 units of water purifiers.TB Problem Qu. 10-240 (Algo) The following data have been provided by Lopus... The following data have been provided by Lopus Corporation: Budgeted production Standard machine-hours per unit Standard lubricants Standard supplies Actual production Actual machine-hours Actual lubricants (total) Actual supplies (total) 3,400 units Lubricants Supplies 3.5 machine-hours $ 5,00 per machine-hour $ 3.70 per machine-hour Variable Overhead Spending Variance 3,700 units 8,880 machine-hours Required: Compute the variable overhead spending variances for lubricants and for supplies. $46,084 $32,492 (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Rahapuka Ltd is a manufacturing company which manufactures and assembles car components. The following budgeted information relates to Rahapuka Ltd for the forthcoming period. Products A1 B2 C3 '000 '000 '000 Sales and production (units) 50 40 30 N$ N$ N$ Selling price (per unit) 45 95 73 Prime cost (per unit) 32 84 65 Hours Hours Hours Machine department (machine hours per unit) 2 5 4 Assembly department (direct labour hours per unit) 7 3 2 Overheads can be reanalyzed into cost pools as follows: Quantity for Cost pool N$000 Cost driver the period Machining services 357 Machine hours 420 000 Assembly services 318 Direct labour hours 530 000 Set up costs 26 Set up 520 Order processing 156 Customer orders 32 000 Purchasing 84 Suppliers orders 11 200 You have also been provided with the following estimates for the period A1 B2 C3 Number of set ups 120 200 200 Customer orders 8000 8000 16000 Suppliers orders 3000 4000 4000…
- An electrical repair service company has produced the following budget for the year ahead: Office repairs House repairs Total £ £ Received from customers Variable costs Fixed costs (apportioned) Profit (loss) 45,000 (24,000) (7,000) 14,000 24,000 (18,000) (8,000) (2,000) 69,000 (42,000) (15,000) 12,000 The fixed costs, which relate to rent and insurance, will be incurred irrespective of the type of activity carried out. Which of the following decisions is supported by the information in the table? A) If the company ceases to carry out house repairs, it will increase total profit from 12,000 to 14,000 B) If the company ceases to carry out house repairs, it will increase total profit from 12,000 to 18,000 C) If the company ceases to carry out house repairs, it will reduce total profit from 12,000 to 6,000 D) If the company ceases to carry out house repairs, it will reduce total profit from 12,000 to 4,000LO.5 (Flexible budget) Tom's Shoe Repair provides a variety of shoe repair services. Analysis of monthly costs revealed the following cost formulas when direct labor hours are used as the basis of cost determination:Supplies: y= $0 + S4.00XProduction supervision and direct labor: y $500+ $7.00XUtilities: y= $350 + $5.40XRent: y= $450+ $0.00XAdvertising: y = $75 + $0.00OXa. Prepare a flexible budget at 250, 300, 350, and 400 direct labor hours.b. Calculate a total cost per direct labor hour at each level of activity. c. Tom's emplovees usually work 350 direct labor hours per month. The average shoe repair requires 1.25 labor hours to complete. Tom wants to earn a 40 percent margin on his cost. What should be the average charge per customer, rounded to the nearest dollar to achieve Tom's profit objective?TB Problem Qu. 9-401 (Algo) Cryan Jeep Tours operates jeep tours... Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: Actual guests Actual jeeps Revenue Expenses: Revenue Tour guide wages. Vehicle expenses. Administrative expenses In May, the company budgeted for 497 guests and 202 jeeps. The company's income statement showing the actual results for the month appears below: Cryan Jeep Tours Income Statement For the Month Ended May 31 Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Guests Jeeps Revenue Expenses: Fixed element per month $0 $0 Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income $ 5,600 $ 2,100 512 197 $ 87,854 Required:…
- 4. Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. It has the following information to be used in preparing its flexible budget: The activity driver is the number of cars washed. The expected revenue per car wash is $4.9 The company expects to wash 9,000 cars in August The budgeted costs are as follows: Electricity is $1,200 per month plus $0.15 per car Depreciation is $6,000 per month Rent is $8,000 per month Cleaning supplies are $0.8 per car Labor cost is $4,000 per month and $0.30 per car Administrative expense is $5,000 per month and $0.30 per car The company actually washed 8,800 cars during the year. Actual results were as follows: Revenues were $40,800 Labor cost was $8,000 Administration was $5,000 Cleaning supplies were $7,400 Electricity was $2,650 What is the total profit in the planning budget for the month?The Set Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year Budgeted costs of operating the materials laboratory for 100.000 to 200 000 technician hours per year Fixed costs per year Variable costs Budgeted long-run usage in hours per year Large Plane Department Smail Plane Department $8,000,000 OA $167 B: $95 OC. $136 OD $117 $73 per technician hour 80.000 technician hours 120,000 technician hours Budgeted amounts are used to calculate the allocation rates Actual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 80,000 technican hours If a single-rate cost-allocation method is used what is the allocation rate per hour used? (Round the final answer to the nearest dollar)Howard Cooper, the president of Finch Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 1: Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost. Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 28,000 hours of services in Year 1. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Finch charges customers $57 per hour, the firm can achieve 31,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if the firm…