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Bay City Company's fixed budget performance report for July follows. The $440,000 budgeted total expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses. Fixed Budget Sales (in units) Sales (in dollars) Total expenses 6,000 $480,000 440,000 Actual Results 4,900 Variances Income from operations $ 40,000 $ 441,000 404,000 $ 37,000 $39,000 U 36,000 F $ 3,000 U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible budget Actual results Variances Fav./Unf. Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,940,000 Sales (14,000 units x $210 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging $336,000 616,000 378,000 136,000 1,466,000 1,474,000 112,000 210,000 Advertising 100,000 422,000 Administrative expenses Administrative salaries 186,000 Depreciation-office equip. 156,000 Insurance 126,000 Office rent 136,000 604,000 Income from operations $ 448,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 12,000 units. (4) Compute the income from operations for sales volume of 16,000 units.

Bay City Company's fixed budget performance report for July follows. The $440,000 budgeted total expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses. Fixed Budget Sales (in units) Sales (in dollars) Total expenses 6,000 $480,000 440,000 Actual Results 4,900 Variances Income from operations $ 40,000 $ 441,000 404,000 $ 37,000 $39,000 U 36,000 F $ 3,000 U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible budget Actual results Variances Fav./Unf. Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,940,000 Sales (14,000 units x $210 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging $336,000 616,000 378,000 136,000 1,466,000 1,474,000 112,000 210,000 Advertising 100,000 422,000 Administrative expenses Administrative salaries 186,000 Depreciation-office equip. 156,000 Insurance 126,000 Office rent 136,000 604,000 Income from operations $ 448,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 12,000 units. (4) Compute the income from operations for sales volume of 16,000 units.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...
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Bay City Company's fixed budget performance report for July follows. The $440,000 budgeted total expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses. Fixed Budget Sales (in units) Sales (in dollars) Total expenses 6,000 $480,000 440,000 Actual Results 4,900 Variances Income from operations $ 40,000 $ 441,000 404,000 $ 37,000 $39,000 U 36,000 F $ 3,000 U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible budget Actual results Variances Fav./Unf.
Transcribed Image Text:Bay City Company's fixed budget performance report for July follows. The $440,000 budgeted total expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses. Fixed Budget Sales (in units) Sales (in dollars) Total expenses 6,000 $480,000 440,000 Actual Results 4,900 Variances Income from operations $ 40,000 $ 441,000 404,000 $ 37,000 $39,000 U 36,000 F $ 3,000 U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible budget Actual results Variances Fav./Unf.
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,940,000 Sales (14,000 units x $210 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging $336,000 616,000 378,000 136,000 1,466,000 1,474,000 112,000 210,000 Advertising 100,000 422,000 Administrative expenses Administrative salaries 186,000 Depreciation-office equip. 156,000 Insurance 126,000 Office rent 136,000 604,000 Income from operations $ 448,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 12,000 units. (4) Compute the income from operations for sales volume of 16,000 units.
Transcribed Image Text:Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget $2,940,000 Sales (14,000 units x $210 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging $336,000 616,000 378,000 136,000 1,466,000 1,474,000 112,000 210,000 Advertising 100,000 422,000 Administrative expenses Administrative salaries 186,000 Depreciation-office equip. 156,000 Insurance 126,000 Office rent 136,000 604,000 Income from operations $ 448,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 12,000 units. (4) Compute the income from operations for sales volume of 16,000 units.
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