The actual information pertains to the month of June. As a part of the budgetingprocess, Great Cabinets Company developed the following static budget for June.Great Cabinets is in the process of preparing the flexible budget andunderstanding the results.StaticBudget21.000ActualFlexibleResultsBudgetSales volume (in units)17.000$935,000$1,155,000480,270Sales revenuesVariable costs391,000Contribution margin544,000674,730Fixed costs275,800$268,200268,600$406,130Operating profitRequired: Use the information above to prepare the flexible budget. Do notforget to indicate fvorable or unfvorable amounts. Set up your response in thespreadsheet outside of this text box.%24

Flexible budget - A flexible budget refers to the budget which shows the difference between fixed…

process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. Actual Results 17.000 Flexible Static Budget Budget 21.000 Sales volume (in units) Sales revenues $935,000 391,000 $1,155,000 480,270 Variable costs Contribution margin 544,000 674,730 Fixed costs 275,800 $268,200 268,600 $406,130 Operating profit Required: Use the information above to prepare the flexible budget. Do not forget to indicate fvorable or unfvorable amounts. Set up your response in the spreadsheet outside of this text box.

process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. Actual Results 17.000 Flexible Static Budget Budget 21.000 Sales volume (in units) Sales revenues $935,000 391,000 $1,155,000 480,270 Variable costs Contribution margin 544,000 674,730 Fixed costs 275,800 $268,200 268,600 $406,130 Operating profit Required: Use the information above to prepare the flexible budget. Do not forget to indicate fvorable or unfvorable amounts. Set up your response in the spreadsheet outside of this text box.

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. Parkson Limited has produced an overhead budget for next year based on two levels of activity, 5000 units and 8,000 units. It needs to calculate budgeted figures based on an activity level of 6,800 units. The budgeted figures for activity levels of 5000 and 8,000 are shown below: Parkson Limited. Budgeted Overheads for the year ending 31 December 2015Production (Units) 5,000 8,000 Type of Cost $ $ Building rent Fixed 20,000 20,000 Building Depreciation Fixed 31,500 31,500Indirect labour Variable 25,000 40,000Indirect materials Variable 15,000 24,000Electricity Semi-variable 30,000 36,000Stock insurance Semi-variable 30,000…
Preparing a flexible budget performance report Cell Plus Technologies manufactures capacitors for cellular base stations and other communication applications. The company’s July 2018 flexible budget shows output levels of 8,500, 10,000, and 12,000 units. The static budget was based on expected sales of 10,000 units. The company sold 12,000 units during July, and its actual operating income was as follows: Requirements Prepare a flexible budget performance report for July 2018. What was the effect on Cell Plus’s operating income of selling 2,000 units more than the static budget level of sales? What is Cell Plus’s static budget variance for operating income? Explain why the flexible budget performance report provides more useful information to Cell Plus’s managers than the simple static budget variance. What insights can Cell Plus’s managers draw from this performance report.
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Using Flexible Budgets The following summary data are from a performance report for Hyland Company for May, during which 9,600 units were produced. The budget reflects the company's normal capacity of 10,000 units. Actual Cost Budget 9,600 10,000 units units Type $102,600 $105,000 $(2,400) Favorable 207,900 210,000 (2,100) Favorable 73,800 72,000 1,800 Unfavorable 54,300 54,000 300 Unfavorable $438,600 $441,000 $(2,400) Favorable Direct material Direct labor Variable overhead Fixed overhead Total a. Prepare a new performance report using flexible budgeting. Round all amounts to the nearest dollar. Variance Direct material $ Direct labor Variable overhead Fixed overhead Totals $ Actual Costs Variances 0 $ 0 0 0 0 $ Flexible Budget 0 $ 0 0 0 0 $ 0 0 0 0 0 Type b. Which of the two performance reports should Hyland Company management use to measure the company's operating efficiency in May? 4 ◄►
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year 680 $ 2,060 $ 1,680 $50 $ 200,000 $22,000 Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement < Prev 9 of 9 Next ........
Production Budget Direct Mtls Budget Sales Budget Direct Lbr Budget Factory OH Selling Exp Admin Exp Budget Cost of Goods Sold Income Budget Budget Statement Requirement Prepare the Direct Materials Budget for Wisniewski Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 5,796 lbs of materials, which complies with the policy. The company expects to have 10,080 lbs. of materials in inventory at year-end. The product's manufacturing cost is $211 per unit, including per unit costs of $84 for materials (6 lbs. at $14 per Ib.), $96 for direct labor (4 hours x $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Show less A Wisniewski Inc. Direct Materials Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted production (units) Materials requirements per unit 1,932…
Echo Amplifiers prepared the following sales budget for the first quarter of 2018: Jan. Feb. Mar. Units 900 1,300 1,400 Sales price $100 $100 $100 Budgeted sales $90,000 $130,000 $140,000 It also has this additional information related to its expenses: Direct material per unit $1.50 Direct labor per unit 2 Variable manufacturing overhead per hour 0.40 Fixed manufacturing overhead per month 3,000 Sales commissions per unit 16 Sales salaries per month 5,100 Delivery expense per unit 0.50 Factory utilities per month 4,000 Administrative salaries per month 20,000 Marketing expenses per month 7,000 Insurance expense per month 12,000 Depreciation expense per month 10,000 Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018. Enter all amounts as positive numbers.
Preparing a flexible budget Office Plus sells its main product, ergonomic mouse pads, for $13 each. Its variable cost is $5.10 per pad. Fixed costs are $205,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $250,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 45,000, 55,000, and 75,000 pads.
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Assume that a company provided the following excerpts of information from its flexible budget performance report: Flexible Planning Actual Results Budget 52 Flights (q) Expenses: Wages and salaries ($4,000+ $88.00g) What is the activity variance for wages and salaries expense? Multiple Choice O $176 U $176 F $66 F $66 U $ 8,510 Budget ? ? ? $ 8,400
You are provided with the following information for Keon Company, You are asked to assist In the budget-setting process. Production budget for January, February and March 2,000 units per month Production budget for April, May and June (and July) 1,800 units per month Production standard-direct material 4.5 kilograms per unit Direct material inventory standard-percentage of closing inventory to next month's production DM required for current month per kilogram 70% Direct material standard cost $25.00 Direct material purchase paid in month of purchase 40% of total purchase amount Direct material purchase paid in following month 60% of total purchase amount Direct material purchases in December 8,000 kilograms Expected 31 December inventory 10,000 kilograms (a) Prepare the direct materials purchase budget in kilograms of material for January to June for Keon Company. Ignore non-round amounts and simply show the nearest whole number for all values.