Required Information [The following information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below. Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $50,000 $ 35,000 Variable Element per Customer Served $ 5,000 $ 1,100 $ 600 Actual Total for May $ 160,000 $ 88,000 $ 19,000 $ 34,500 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 4. What amount of other expenses would be included in Aager's flexible budget for May?

Required Information [The following information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below. Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $50,000 $ 35,000 Variable Element per Customer Served $ 5,000 $ 1,100 $ 600 Actual Total for May $ 160,000 $ 88,000 $ 19,000 $ 34,500 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 4. What amount of other expenses would be included in Aager's flexible budget for May?

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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2) Conner Hardware, Inc's static budget for the year is shown below: Sales (25,000 units) Cost of Goods Sold: Direct Material Direct Labor Overhead (includes $4 per unit Variable cost) Gross Profit Selling Expenses Sales Commissions (Variable) Rent (Fixed) Insurance (Fixed) General and administrative expenses Salaries (fixed) Rent (Fixed) Depreciation (Fixed) Sales Variable Cost: Direct Materials Direct Labor Variable OH Sales Commission Total Variable Cost Contribution Margin Fixed Cost: Fixed OH Rent Expense-Selling Insurance Expense Salaries Expense Rent Expense-General Prepare a flexible budget for Connor Hardware Inc. that shows a detailed budget for its static budget and its actual sales volume of 40,000 units. Use the contribution margin approach. Depreciation Expense Total Fixed Cost Income from Operations $150,000 300,000 175,000 25,000 units 50,000 90,000 35,000 100,000 40,000 60,000 $1,200,000 625,000 575,000 375,000 $ 200,000 40,000 units
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Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 3,000 $ 4.00g $ 205 + $ 0.759 The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much utilities expense would be included in the planning budget? Multiple Choice $1,500 $1,630 $1,705 $1,730
Two businesses, p td. And q Itd. Sell the same type of product in the same type of market. Their budgeted profit and loss accounts for the coming year are as under: Q Ltd. P Ltd. Sales 1,50,000 1,50,000 Less: Variable Costs 1,20,000 1,00,000 Fixed Costs 15,000 1,35,000 35,000 1,35,000 Budget Net Profit 15,000 15,000 You are required to: Calculate the break-even point for each business Calculate the sales volume at which each business will earn rs.5,000 Profit. State which business is likely to earn greater profit in conditions of 1. Heavy demand for the product 2. Low demand for the product, and, briefly give your argument also.
[The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 59,000 Revenue variance $ 38,000 Variable Element per Customer Served $ 5,500 $2,000 $ 510 Actual Total for May $ 204,000 $ 137,900 $ 17,500 $36,200 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. 6. What is Adger's revenue variance for May? Note: 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.
Contribution Margin Ratio a. Matzinger Company budgets sales of $1,150,000, fixed costs of $155,300, and variable costs of $690,000. What is the contribution margin ratio for Matzinger Company? % b. If the contribution margin ratio for Raynor Company is 39%, sales were $639,000, and fixed costs are $194,380, what is the operating income? Check My Work Previous Next
Income Statements Segmented by TerritoryScript, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC.Product Line and Company Income StatementsFor Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (8,000) (6,000) (14,000) Product margin $7,000 $12,000 $19,000 Less common fixed expenses (6,000) Net income $13,000 Pens and pencils are sold in two territories, Florida and Alabama, as follows: Florida Alabama Pen sales $11,000 $14,000 Pencil sales 13,000 17,000 Total sales $24,000 $31,000 The preceding common fixed expenses are traceable to each territory as follows: Florida fixed expenses $2,000 Alabama fixed expenses 3,000 Home office administration fixed expenses 1,000 Total common fixed expenses $6,000 The…
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