Required:Using Exhibit 9–9 as your guide, prepare the company’s flexible budget for July.The Terminator Inc. provides on-site residential pest extermination services. The company hasseveral mobile teams who are dispatched from a central location in company-owned trucks. TheEXERCISE 9-6 Critique a Variance Report LO9-6company uses the number of jobs to measure activity. At the beginning of April, the compebudgeted for 100 jobs, but the actual number of jobs turned out to be 105. A report comparingbudgeted revenues and costs to the actual revenues and costs appears below:The Terminator Inc.Variance ReportFor the Month Ended April 30PlanningBudgetActualResultsVariances105100Jobs .....Revenue ....$20,520 $19,500$ 1,020 FExpenses:Mobile team operating costs .Exterminating suppliesAdvertisingDispatching costs ..Office rent ..320 U10,0001,80010,320960840 F800800..2,340140 U1,8002,1002,2001,8002,100Insurance.0.Total expense ...18,32018,700380 F..Net operating income ...$ 2,200%24800$ 1,400 FRequired:Is the above variance report useful for evaluating how well revenues and costs were controlleaduring April? Why, or why not?

Job order costing system is a system for allocating and gathering together the cost of manufacturing…

Answered: Required: Using Exhibit 9–9 as your…

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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Solve question number 13 with steps. Solve part a .The subject is Managerial Accounting.
Refer to DCdesserts.com's activity (Picture below) based flexible budget. Suppose that the company's activity in june is described as follows Process hours 9,000Production runs 12New products tested 30Direct material handled (pounds) 40,000 Determine the flexible budget cost for the TOTAL OVERHEAD COSTa. Indirect material 33,000b. Utilities 6,000c. Inspection 3,300d. Test kitchen 1,800e. Material handling 4,000f. TOTAL OVERHEAD COST ?
Classic Loungers is in the process of preparing a production cost budget for August. Actual costs in July for 400 chaise lounge chairs were: Materials cost $ 6,000 Labor cost 8,000 Rent 2,000 Depreciation 4,000 Other fixed costs 5,000 Total $ 25,000 Material cost and Labor cost are considered variable. Each chair was sold for $160 in July. Management estimates that sales will increase to 440 chairs during August if the company lowers the selling price to $150 per chair. What is the incremental profit (loss) associated with the price reduction? $(200) $(2,200) $2,100 $800 $600
Prepare a columnar flexible budget for Flaming Foliage Sky Tours’ expenses, using air miles as the cost driver at the following activity levels: 21,000 air miles, 25,000 air miles, and 28,000 air miles.
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Bramble Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Bramble's controller. The company applies overhead on the basis of machine hours. Variable manufacturing overhead Fixed manufacturing overhead Direct labor hours Machine hours Variable overhead spending variance Annual Budget $2,062,400 $1,202,280 Variable overhead efficiency variance During the month of May, Bramble used 4,350 direct labor hours and 21,890 machine hours. The flexible budget for the month allowed 4,450 direct labor hours and 21,200 machine hours. Actual fixed manufacturing overhead incurred was $109,400; variable manufacturing overhead incurred was $173,320. Fixed overhead spending variance (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, eg.…
Using a flexible budgeting approach how do I prepare a performance report for the passion department for April 2016, compare an actual overhead cost for 4600 hours. Separate overhead cost into variable and fixed components and show the amounts of any variances between actual budgeted amounts.
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Prepare the company's flexible budget for August.
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The College of Business at Northeast College is accumulating data as a first step in the preparation of next year's budget development. One cost that is being looked at closely is administrative costs as a function of student credit hours. Data on administrative costs and credit hours for the past thirteen months are shown below: Month July August September October November December January February March April May June July Total Average Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Administrative Costs $ 130, 151 Regression Residual Total 83,293 226,090 216,734 258,433 185,299 219,817 245, 510 209,802 192,095 250,828 171,098 128,677 $ 2,517,827 $ 193,679 SUMMARY OUTPUT Regression Statistics The controller's office has analyzed the data and has given you the results from the regression analysis: Credit Hours df 1 11 12 1,100 557 1,834 1,442 1,751 1,554 1,781 1,815 1,506 1,565 1,802 862 757 18,326 1,410 0.9169697 0.840833374 0.826363681 22,082.14006 13 SS…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Fixed Cost per Month Cost per Course Student 2,940 $ 290 1,210 $ 50 4,700 2,200 3,700 $ 46 $ For example, administrative expenses should be $3,700 per month plus 546 per course plus $4 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below. Revenue Actual 50,780 Instructor wages $ 11,040…

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