Shalom Company measures its activity in terms of court reservations. Last month, the budgeted level of activity was 480 player-visits, and the actual level of activity was 440 player-visits. The company budgets for variable overhead costs of P3.30 per player-visit and fixed overhead costs of P10,600 per month. The actual variable overhead cost last month was P3,830 and the actual fixed overhead cost was P8,780. In your flexible budget performance report, identify the difference between budgeted and actual costs and indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. total manufacturing costs

Shalom Company measures its activity in terms of court reservations. Last month, the budgeted level of activity was 480 player-visits, and the actual level of activity was 440 player-visits. The company budgets for variable overhead costs of P3.30 per player-visit and fixed overhead costs of P10,600 per month. The actual variable overhead cost last month was P3,830 and the actual fixed overhead cost was P8,780. In your flexible budget performance report, identify the difference between budgeted and actual costs and indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. total manufacturing costs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

[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.
Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue $ 0 $ 50.80 Personnel expenses $ 26,600 $ 15.60 Medical supplies 1,400 9.40 Occupancy expenses 7,600 2.40 Administrative expenses 5,300 0.10 Total expenses $ 40,900 $ 27.50 The occupancy expenses in the flexible budget for September would be closest to: Multiple Choice A. $13,215 B. 12,808 C. $13,583 D. $12,880
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,500 customers, but actually served 31,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.00q Wages and salaries: $33,700 + $1.25q Supplies: $0.65q Insurance: $10,900 Miscellaneous expenses: $6,900 + $0.35q The company reported the following actual results for February: $129,800 $ 68,500 $ 14,900 $ 10,900 $ 20,200 Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (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.)
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit $ 27 Variable expense per unit $ 18 Fixed expense per month $ 7,650 Unit sales per month 1,000 Required: What is the company's margin of safety in dollars? Note: Do not round intermediate calculations. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).
Joseph Daze Growers accumulated actual MOH costs this year of $48,480, even though it had budgeted $55,460 of MOH. It allocates MOH based on the direct labor hours of its workers. At the beginning of the year, it budgeted for 9,400 hours but ended up using 10,100 hours this year.Determine the following. (Round budgeted and actual MOH rate answers to 2 decimal places, e.g 2.25.) (a) The budgeted MOH rate $enter a dollar amount per hour rounded to 2 decimal places /hr. (b) The actual MOH rate $enter a dollar amount per hour rounded to 2 decimal places /hr. (c) Applied MOH under actual costing $enter a dollar amount (d) Applied MOH under normal costing $enter a dollar amount
Prowse Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Revenue Employee salaries and wages Servicing materials Other expenses A total of 42 wells were actually serviced during October. Multiple Choice O The total expenses in the flexible budget for October would have been closest to: O O O $147,600 $130,029 Fixed Element Variable Element per Well per Month Serviced $149,200 $141,200 $43,800 $38,200 $4,000 $1,000 $ 600
Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $56,760 per month plus $2626 per flight plus $9 per passenger. The company expected its activity in February to be 63 flights and 262 passengers, but the actual activity was 62 flights and 263 passengers. The actual cost for plane operating costs in February was $220,700. The plane operating costs in the planning budget for February would be closest to:
Speyer Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1200 patient-visits and the actual level of activity was 1190 patient-visits. The cost formula for administrative expenses is $4.40 per patient-visit plus $24,000 per month. The actual administrative expense was $23,500. Last month the clinic's spending variance for administrative expenses was:
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,400 units, but its actual level of activity was 6,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue $ 0 $ 33.90 Direct labor $ 0 $ 5.90 Direct materials 0 13.50 Manufacturing overhead 34,000 1.40 Selling and administrative expenses 25,200 0.60 Total expenses $ 59,200 $ 21.40 Actual results for May: Revenue $ 216,300 Direct labor $ 36,930 Direct materials $ 86,900 Manufacturing overhead $ 42,000 Selling and administrative expenses $ 30,440 The revenue variance for May would be closest to:
Husky Company has provided the following information for its most recent year of operation: Cash collected from customers totaled $90,000. Cash borrowed from banks totaled $33,100. Cash paid to employees for salaries totaled $32,800. Cash received from selling Husky common stock to stockholders totaled $48,000. Cash payments to banks for repayment of money borrowed totaled $8,200. Cash paid to suppliers totaled $8,600. Land costing $26,000 was sold for $26,000 cash. Cash paid for dividends to stockholders totaled $4,000. How much was Husky's cash flow from operating activities?
Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. Fixed Element per Month Revenue Variable Element per Customer Served $ 4,100 Actual Total for August $ 120,500 Employee salaries and wages $ 41,500 $ 1,000 $ 71,200 Travel expenses $ 500 $ 14,800 Other expenses $ 38,900 $ 38,400 When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The spending variance for total expenses for August would have been closest to: