Required:Susan has asked you to produce a report, to SGP's UK board of directors, analysing the Novemberperformance of "Living the Dream". Your report should cover the following requirements.a) With reference to the actual results for November, prepare the original November budget and a flexedNovember budget for the product. Comment on your findings.b) Calculate the following variances using the budgets in (a) and the actual performance for November.Sales volumei.iii.iv.V.vi.vii.Sales priceDirect labour efficiencyDirect labour rateDirect material usageDirect material rateFixed overheadsc) Produce a reconciliation statement comparing the original budgeted and actual profits for the productfor the month of November. Clearly explain the variances in the reconciliation.d) Recommend possible actions the board should consider when making plans for the "Living the Dream"product. Salah Global Products (SGP) is a manufacturer of sporting trophies and has factories across the worldmaking original and replica trophies for each geographic region that it serves.Following the success of Liverpool Football Club winning the Premiership title in 2020, SGP have createda replica Premier League trophy, which allows fans to create a personal message on the front of the trophy,either for themselves or for others. The SGP marketing team has assigned the product name "Living theDream".Unfortunately, the product launch was delayed due to issues in securing the required licences from bothLiverpool FC and the Premier League. The product eventually launched on the 1st November 2020.You are Gini Dalglish and have recently joined SGP as a Management Accountant in their UK business,and your line manager is the UK Finance Director, Susan Fenway.Susan would like to review the product's performance for the first month to understand whether any changesare required in preparation for the Christmas gift season, and she has asked you to perform this analysisand report back. Susan has provided you with the following standard costs for one unit of the product.Direct labour (15 minutes)Direct materials (2 grams)Fixed overheads (based on the budgeted monthly output of 20,000 units)Selling priceProfitSales revenueDirect labour (4,000 hours)Direct materials (32,000 grams)Fixed overheadsProfitDuring the month of November, you have found that only 15,000 units were made and sold and the financialresults were as follows:£2.301.503.307.1010.503.40£153,900(35,040)(23,360)(67,350)28,150

Standard costing is a technique of cost accounting which includes both the actual amounts as well as…

Required: Susan has asked you to produce a report, to SGP's UK board of directors, analysing the November performance of "Living the Dream". Your report should cover the following requirements. a) With reference to the actual results for November, prepare the original November budget and a flexed November budget for the product. Comment on your findings. b) Calculate the following variances using the budgets in (a) and the actual performance for November. Sales volume i. iv. V. vi. vii. Sales price Direct labour efficiency Direct labour rate Direct material usage Direct material rate Fixed overheads

Required: Susan has asked you to produce a report, to SGP's UK board of directors, analysing the November performance of "Living the Dream". Your report should cover the following requirements. a) With reference to the actual results for November, prepare the original November budget and a flexed November budget for the product. Comment on your findings. b) Calculate the following variances using the budgets in (a) and the actual performance for November. Sales volume i. iv. V. vi. vii. Sales price Direct labour efficiency Direct labour rate Direct material usage Direct material rate Fixed overheads

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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Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Sales (units produced and sold) Sales (in dollars) Variable costs Fixed costs For Month Ended May 31 Fixed Budget 1,300 $ 800 per unit $320 per unit $ 140,000 LEWIS COMPANY Flexible Budget Performance Report Flexible Budget Actual Results (1,500 units) (1,500 units) Variances Actual Results 1,500 $ 1,245,000 $ 492,000 $ 132,000 Favorable/Unfavorable
The financial director of SolarTech Ltd meets with the research director quarterly to compare actual and budgeted costs and follow up on any unexpected variances?
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Selected data for March for Irvington, Incorporated follows. The variable material sales activity variance is $23,040 U. Flexible budget based on actual sales of 9,958 units: Revenue Materials Labor Variable overhead Fixed costs (manufacturing and administrative) Required: a. How many units were budgeted for March in the master budget? b. Recreate the master budget for March. Complete this question by entering your answers in the tabs below. Required A Required B How many units were budgeted for March in the master budget? Budgeted sales units $ 300,440 99,840 78,000 50,960 41,120
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Variable Fixed Component per Month Component per Job $ 277 Actual Total for February $ 27,720 $ 8,350 $ 8,370 Revenue Technician wages $ 8,500 Mobile lab operating expenses $ 4,900 $ 33 Office expenses $ 2,400 $2 $ 2,470 Advertising expenses $ 1,600 $ 1,670 Insurance $ 2,850 $ 2,850 Miscellaneous expenses $ 960 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,370. The company expected to work 110 jobs in February, but actually worked 120 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F"…
! 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…
Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (q) Revenue ($340.00q) Expenses: Wages and salaries ($3,300 + $91.00q) Fuel ($32.00q) Airport fees ($850 + $31.00q) Aircraft depreciation ($10.00q) Office expenses ($210+ $1.00q) Total expenses Net operating income Actual Results 55 $ 16,100 8,263 1,926 2,410 550 433 13,582 $ 2,518 Flexible Planning Budget Budget 53 $ 18,020 55 $ 18,700 8,305 1,760 2,555 550 265 13,435 $ 5,265 8,123 1,696 2,493 530 263 13,105 $ 4,915 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at a discount.
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In analyzing company operations, the controller of the Carson Corporation found a $250,000 favorable flexible budget revenue variance. The variance was calculated by comparing the actual results with the flexible budget. This variance can be wholly explained by: (CMA adapted) Multiple Choice О the total flexible budget variance. О the total static budget variance. О changes in unit selling prices. changes in the number of units sold.
Budgets Question 1. A manager had the following operating budget and achieved the actual results shown. Calculate the variance and variance percentage for each line item. Then answer the questions that follow. Sales Budget Actual Variance Food $500,000 $550,000 Beverage |50,000 165,000 $650,000 Total Sales Total Controllable Expense Total Fixed Expense 450,000 495,000 135,000 135,000 Profit (Loss) $65,000 What is your assessment of this operation's expense control performance during this budget period? 2. Why are managers who are skilled at controlling expenses in such high demand in the hospitality industry? W APR