Sunland Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of2,500 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales.Sales Revenue$ 230,000Cost of goods sold (all variable)170,000Gross margin60,000Operating expenses50,000Operating income2$10,000Prepare a flexible budget based on sales of 1,000, 2,820, and 3,760 units. (Round unit values to 2 decimal places e.g. 15.25 and all otheranswers to 0 decimal places, eg. 1525. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 orparentheses e.g. (45).)

STATIC BUDGET Number of Units 1,000 units 2,820 units 3,760 units Sales Revenue (Number of…

Answered: Sunland Sports sells volleyball kits…

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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Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 4,000 5,600 10,000 9,300 Sales $ $ 28,000 $ 15,120 $ 20,000 $ 19,530 Variable costs 3,200 5,600 10,000 9,770 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 5,000 $ 7,500 $ 12,400 $ 12,170 Operating income $ 23,000 $ 7,620 $ 7,600 $ 7,360 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $4,960 favorable. $5,660 favorable. $7,330 favorable. $8,030 favorable. $9,920 favorable. THE ANSWER IS NOT 8030 and I am not sure why
High Trails manufactures backpacks for adventurers. Totals sales for the year are budgeted at 2,400 backpacks, at a price of $90 each. Variable selling expenses include commissions ( 3% of sales price) and delivery costs ( $12 per backpack). Annual fixed selling and administrative expenses include general liability insurance ( $9,000), sales fleet depreciation ( $135,000), administrative salaries ( $270,000), and rent on the office building ( $63,000). High Trails pays all costs as they are incurred. What is the amount of cash budgeted for Selling and Administrative expenses for the year? Select one: a. $377,280 b. $368,280 c. $477,000 d. $512,280 e. None of these options are correct.
Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $159,370 budgeted expenses include $106,650 in variable expenses for desks and $18,720 in variable expenses for chairs, as well as $34,000 fixed expenses. The actual expenses include $35,400 fixed expenses. List fixed and variable expenses separately. Desk sales (in units) Chair sales (in units) Desk sales. Chair sales Total expenses Income from operations Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Actual Results Variances 135 72 $170, 100 42,480 159,370 $ 53,210 Fixed expenses income from operations 141 80 $176,250 48,400 168,050 $ 56,600 Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. $6,150 F 5,920 F 8,680 U $3,390 F BUSINESS SOLUTIONS Flexible Budget Performance Report For Quarter Ended June 30 Flexible Budget Actual Results Variance Fav/Unt. Unfavorable Favorable…
The Year 1 selling expense budget for Apple Corporation is as follows. Miscellaneous expenses are mixed costs that include fixed costs of $2,000. The rest of miscellaneous expenses vary proportionately with budgeted sales in dollars. The budgeted sales for Year 2 are $330,000. What will be the value of miscellaneous expenses in the Year 2 selling expense budget? Budgeted sales $275,000 Selling costs: Delivery expenses Commission expenses Advertising expenses Office expenses Miscellaneous expenses Total $5,960 $4,200 $3,600 $6.200 $2,750 5,500 2,500 1,500 5.300 $ 17,550
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Zaria Inc. provides the following budgeted data for producing 10,000 units of one of its products in its static budget for the next quarter: Sales per unit $60 Variable costs per unit $40 Fixed costs for the quarter $20,000 What would be the amount of operating income to be reported in the flexible budget prepared at a volume of 12,000 units? Group of answer choices $620,000 $216,000 $220,000 $300,000
Production Budget and Purchase of Raw Materials. Brown Corporation's sales budget for the following year is as follows: Quarter 1 = 20,000 units %3D Quarter 2 = 25,000 units Quarter 3 = 22,000 units %3D Quarter 4 = 30,000 units Each unit of product requires 2 pounds of direct materials. The company's policy is that at the beginning of each quarter, product inventory is 15 percent of sales for the quarter and direct material inventory is equal to 25 percent of diréct material needs for production in that quarter. Required: Determine the production and purchase budget of raw materials for the second quarter!
empo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units × $202 per unit) $ 3,232,000 Cost of goods sold Direct materials $ 400,000 Direct labor 704,000 Production supplies 416,000 Plant manager salary 200,000 1,720,000 Gross profit 1,512,000 Selling expenses Sales commissions 128,000 Packaging 240,000 Advertising 100,000 468,000 Administrative expenses Administrative salaries 250,000 Depreciation—office equip. 220,000 Insurance 190,000 Office rent 200,000 860,000 Income from operations $ 184,000 1.Compute the total variable cost per unit. 2. Compute the total fixed costs. 3.Compute the income from operations for sales volume of…
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Sheridan Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,200 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales Cost of goods sold (all variable) Gross margin Operating expenses Operating income Unit Sales Sales revenue $ 220,000 Cost of goods sold $ 140,800 Assume that Sheridan Sports actually sold 1,900 volleyball kits during the year at a price of $102 per kit. Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Flexible Budget 79,200 70,000 9,200 LA Sales Volume Variance LA Static Budget

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