Shalom Company measures its activity in terms of court reservations. Last month, the budgetedlevel of activity was 480 player-visits, and the actual level of activity was 440 player-visits. Thecompany budgets for variable overhead costs of P3.30 per player-visit and fixed overhead costsof P10,600 per month. The actual variable overhead cost last month was P3,830 and the actualfixed overhead cost was P8,780.In your flexible budget performance report, identify the difference between budgeted and actualcosts and indicate as favorable or unfavorable.Format should be: 8,000 F or 8,000 UFNo need to indicate if the amount is positive or negative.total fixed manufacturing costs Shalom Company plans to produce 50,000 units of Peace Products in 2023. Budgeted variablemanufacturing costs per unit are direct materials P7, direct labor P12, and overhead P18. Annualbudgeted fixed manufacturing overhead costs are P96,000 for depreciation and P45,000 forsupervision. In February, Shalom produced 6,000 units and incurred the following costs: directmaterials P38,900, direct labor P70,200, variable overhead P116,500, depreciation P8,000, andsupervision P4,000.In your flexible budget performance report, identify the difference between budgeted and actualcosts and indicate as favorable or unfavorable.Amounts must be in whole numbers.Format should be: 8,000 F or 8,000 UFvariable manufacturing overhead

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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 fixed 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 fixed manufacturing costs

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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[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.
Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element Variable element per month per unit Revenue $ 0 $ 0 $ 27.80 $ 3.10 Direct labor Direct materials 10.20 Manufacturing overhead 37,200 1.10 Selling and administrative expenses 22,800 0.30 Total expenses $ 60,000 $ 14.70 Actual results for June: Revenue $ 178,318 $ 18,606 $ 60,652 $ 43,896 $ 24,688 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The activity variance for net operating income in June would be closest to:
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
Hirons 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 $57,740 per month plus $3,006 per flight plus $17 per passenger. The company expected Its activity In November to be 85 flights and 257 passengers, but the actual activity was 88 flights and 259 passengers. The actual cost for plane operating costs in November was $315,650. The spending varlance for plane operating costs In November would be closest to: Multiple Cholce $1,969 U $11,021 U $11,021 F $1,969 F
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).
Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,900 units, but its actual level of activity was 5,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element per month Variable element per unit Revenue $ 0 $ 29.30 Direct labor $ 0 $ 3.90 Direct materials 0 10.00 Manufacturing overhead 39,000 1.20 Selling and administrative expenses 24,600 0.40 Total expenses $ 63,600 $ 15.50 Actual results for June: Revenue $ 176,358 Direct labor $ 22,310 Direct materials $ 56,330 Manufacturing overhead $ 45,917 Selling and administrative expenses $ 26,989 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget…
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
Mist, Inc. provides free meals in an employee cafeteria for its employees. The employee cafeteria budgeted $32 of variable expenses per employee for the month of December, calculated using a budgeted average of 1,650 employees. During December, an average of 1,630 employees were actually working in the various operating departments. The actual variable expenses incurred by the employee cafeteria totaled $54,200 for the month. For performance evaluation purposes at the end of December, how much variable expenses from the cafeteria should Mist, Inc. charge to the operating departments? Multiple Choice $54,852 $54,200 $52.160 $52,800
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:
Dee and Co. is a small manufacturing business which has prepared the following monthly budgeted figures for an average month: Production Volume 15,000 units Selling Price per Unit GH¢5.50 Sales GH¢82,500 Variable Costs GH¢37,500 Fixed Costs GH¢20,000 Profit GH¢25,000 Required: a) What is the contribution per unit? b) Determine the contribution to sales ratio. c) What is the number of units Dee and Co. needs to produce and sell each month in order to break even? d) Find the sales revenue in value required to make a target profit of GH¢50,000.