Required information[The following information applies to the questions displayed below.]The fixed budget for 21,600 units of production shows sales of $583,200; variable costs of $64,800; and fixed costs of$143,000.The company's actual sales were 26,900 units at $679,300. Actual variable costs were $113,300 and actual fixed costs were $132,000.Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of eachvariance by selecting favorable, unfavorable, or no variance.)SalesVariable costsContribution marginFixed costsIncomeX Answer is complete but not entirely correct.Flexible Budget Performance ReportFlexibleActualBudgetResults$$645,60080,700564,900143,000421,900Variances$ 679,300 $(33,700)113,300(32,600)566,000(63,500)132,00011,000$ 434,000 $ (12,100)Favorable/UnfavorableUnfavorableUnfavorableUnfavorableFavorableUnfavorable

Lets understand the basics.Flexible budget is prepared by the management to know sales, variable…

Required information [The following information applies to the questions displayed below.] The fixed budget for 21,600 units of production shows sales of $583,200; variable costs of $64,800; and fixed costs of $143,000. The company's actual sales were 26,900 units at $679,300. Actual variable costs were $113,300 and actual fixed costs were $132, Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of e variance by selecting favorable, unfavorable, or no variance.) Sales Variable costs Contribution margin Fixed costs Income ✓ Answer is complete but not entirely correct. Flexible Budget Performance Report Flexible Actual Budget Results $ 564,900 143,000✔ 421,900 $ 434,000 Variances 645,600 $ 679,300 $ (33,700) Unfavorable 80,700✔ 113,300 (32,600) Unfavorable 566,000 (63,500) Unfavorable 11,000 Favorable $ (12,100) X Unfavorable 132,000✔ Favorable/ Unfavorable

Required information [The following information applies to the questions displayed below.] The fixed budget for 21,600 units of production shows sales of $583,200; variable costs of $64,800; and fixed costs of $143,000. The company's actual sales were 26,900 units at $679,300. Actual variable costs were $113,300 and actual fixed costs were $132, Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of e variance by selecting favorable, unfavorable, or no variance.) Sales Variable costs Contribution margin Fixed costs Income ✓ Answer is complete but not entirely correct. Flexible Budget Performance Report Flexible Actual Budget Results $ 564,900 143,000✔ 421,900 $ 434,000 Variances 645,600 $ 679,300 $ (33,700) Unfavorable 80,700✔ 113,300 (32,600) Unfavorable 566,000 (63,500) Unfavorable 11,000 Favorable $ (12,100) X Unfavorable 132,000✔ Favorable/ Unfavorable

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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Matthew works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $97 and $192 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 760 pairs of clogs and 240 pairs of boots. The variable cost per pair was $52 for clogs and $78 for boots. At the end of the year, Matthew evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. . . . (a) Actual sales volume: clogs, 869; boots, 231. Actual selling price: clogs, $108 per pair; boots, $181 per pair. Actual per-unit variable costs for each product were the same as budgeted. Your answer is correct.
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Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $80 per unit and variable costs of $35 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. For Month Ended June 30 Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget Actual Results (11,300 units) (11,300 units) 508,500 275,000 356,000 290,000 Variances Favorable or Unfavorable 31,000 Favorable $
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! Required information [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,300 units. Sales Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries. Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment Income PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales (18,300 units) Costs Income Direct materials Direct labor Sales staff commissions Depreciation-Machinery Phoenix Company reports the following actual results. Actual sales were 18,300 units. Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment $ 3,060,000 979,200 229,500 76,500 300,000 200,000 229,500 250,000 450, 300 192,000 $ 153,000 $ 3,705,750 $ 1,185,840 281,820 82,350 300,000 214,000 266, 265 267,000 458,300…
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