Rooney Company has provided the following for the year: Budget Sales $ 519,000 Variable product costs 197,000 Variable selling expense 41,000 Other variable expenses 3, 300 Fixed product costs 16, 500 Fixed selling expense 24,300 Other fixed expenses 1,300 Interest expense 750 Variances Sales 8, 400 U Variable product costs 4, 600 F Variable selling expense 1,800 U Other variable expenses 1,400 U Fixed product costs 270 F Fixed selling expense 420 F Other fixed expenses 100 U Interest expense 110 F Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero

Rooney Company has provided the following for the year: Budget Sales $ 519,000 Variable product costs 197,000 Variable selling expense 41,000 Other variable expenses 3, 300 Fixed product costs 16, 500 Fixed selling expense 24,300 Other fixed expenses 1,300 Interest expense 750 Variances Sales 8, 400 U Variable product costs 4, 600 F Variable selling expense 1,800 U Other variable expenses 1,400 U Fixed product costs 270 F Fixed selling expense 420 F Other fixed expenses 100 U Interest expense 110 F Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero

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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Sales (units) 13,000 Sales price per unit $40 Uncollectible expense* 1% Direct material per unit $1 Direct labor per unit (hours) 0.50 Direct labor rate per hour $21 Manufacturing overhead $14,000 Variable sales and administrative expenses per unit $2 Fixed sales and administrative expenses $21,000 Taxes** 15% *of sales **of income before taxes Prepare a budgeted income statement using the above information. Round final answers to nearest whole dollar. Budgeted Income Statement For the Year Ending Dec. 31, 2020 $fill in the blank 2 $fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 $fill in the blank 12 fill in the blank 14 fill in the blank 16 fill in the blank 18 $fill in the blank 20 fill in the blank 22 $fill in the blank 24
Gibson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 96 (64) a. Total number of products b. Product Super b. Product Supreme $32 Supreme $ 132 (86) Gibson expects to incur annual fixed costs of $155,660. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. units units units $ 46 Required a. Determine the total number of products (units of Super and Supreme combined) Gibson must sell to break even. b. How many units each of Super and Supreme must Gibson sell to break even? Note: For all requirements, do not round intermediate calculations.
The following data have been extracted from the budgets and standard costs of FAA Limited, a company which manufactures and sells a single product. GHS per unit Selling price 65.00 Direct materials cost 15.00 Direct labour cost 6.00 Variable overhead cost 3.50 Fixed production overhead costs are budgeted at GHS500,000 per annum. Normal production levels are thought to be 400,000 units per annum. Budgeted selling and distribution costs are as follows. Variable GHS 2.50 per unit sold Fixeed GHS 90,000 per annum Budgeted administration costs are GHS180,000 per annum. The following trends of sales and production are expected during the first six months of 2020. 1st Quarter 2nd Quarter Sales (units) 80,000 100,000 Production (units) 90,000 120,000 There is no inventory on 1st January 2020.…
Revenue and cost details for a company’s single product are as follows:BWP per unit BWP per unitSales priceVariable costFixed costProfit15827(23)4Fixed costs are absorbed based on the company’s normal activity, which is also the company’s budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400.Required: a. Calculate the breakeven point in units for each period. b. Calculate the number of units to be produced and sold to achieve a profit of P6,600 for the period
Lincoln Corporation used the following data to evaluate their current operating systemThe company sells items for $18 each and used a budgeted selling price of $18 per Units sold Variable costs Fixed costs Actual Budgeted 45,000 units 31,000 units $161,000 150,000 $44,000 $50,000 What is the staticbudget variance of variable costs? A. 11,000 unfavorable B. $6,000 favorable C. 14,000 favorable D. $5,000 unfavorable
The actual selling expenses incurred in March 2022 by Wildhorse Company are as follows. Fixed Expenses Sales salaries $35,300 Depreciation 7,000 Insurance 1,800 Variable Expenses Sales commissions $12,741 Advertising 10,258 6,772 3,446 Travel Delivery (a) Prepare a flexible budget performance report for March, assuming that March sales were $169,300. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, traveling 4%, and delivery 2%, Fixed selling expenses will consist of sales salaries $35,300, Depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,800, (List variable costs before fixed costs) preto, a delivery du hent 57000 and nuance on de (b) Prepare a flexible budget performance report, assuming that March sales were $176,800 (Lit variable costs before foxed cosE Budget WILDHORSE COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2022 Actual Difference Favorable Unfavorabl Neither…
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Ellie Manufacturing Company produces three products: A, B, and C. The income statement for the most recent year is as follows: $200,000 Sales Less: Variable cost Contribution margin Less fixed cost: Manufacturing Selling and administrative Sales 34,000 Operating income $39,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows: Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common expenses $ $20,000 14,000 $ $ A $60,000 Contribution margin ratio Direct fixed expenses of products Required: Prepare income statements segmented by products. Include a column for the entire firm in the statement. Ellie Manufacturing Company Segmented Income Statement For the Most Recent Year A B 127,000 $73,000 $40,000 30% $8,000 $5,000 35% C B $ C Total $100,000 40% $4,000
A company’s flexible budget for 19,000 units of production showed sales, $87,400; variable costs, $43,700; and fixed costs, $24,000. The variable costs expected if the company produces and sells 24,000 units is?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,700 units) $ 246, 400 $ 32.00 Variable expenses 138, 600 18.00 Contribution margin 107,800 $ 14.00 Fixed expenses 54, 500 Net operating income $ 53,300 Required: (Consider each case independently): What would be the revised net operating income per month if the sales volume increases by 60 units? What would be the revised net operating income per month if the sales volume decreases by 60 units? What would be the revised net operating income per month if the sales volume is 6, 700 units?
The following data have been extracted from the budgets of Kelvin Ltd,a company that manufacture and sells a single product $per unit Selling price Direct material cost Direct wages Variable overhead Fixed overhead 45 10 4 2.50 1.50 Fixed production overhead costs are budgeted at $400,000 per annum. Normal production levels are expected to be 200,000 units per annum. Actual Fixed Production overheads are $120,000 Budgeted administration costs are $120,000 per annum. The following pattern of sales and production is expected during 2003: Sales (units) Production (units) 60,000 70,000 You are required a. To prepare budgeted profit statements for the year using (i) (ii) Marginal Costing Absorption Costing b. To reconcile the profits for the year