The actual information pertains to the month of June. As part of the budgeting process, Colonial Fencing Companydeveloped the following static budget for September. Colonial is in the process of preparing the flexible budget andunderstanding the results.Actual Results Flexible Budget Static Budget22,500Sales volume (in units)14,000Sales revenues$590,000$675,000Variable costs256,0002$300,000Contribution margin$334,00024$375,000Fixed costs237,00024244,000Operating profit$97,0002$$131,000The flexible budget for sales revenues will be?A. $675,000O B. $420,000Oc. $590,000O D. $697,500httpSta7) SunitMissinhttp://wG4 1)D) actuaStandareCalculatorNext3 pages

Budgeted selling price per unit = Static budgeted sales revenue/sales units

The actual information pertains to the month of June. As part of the budgeting p developed the following static budget for September. Colonial is in the process understanding the results. Actual Results Flexible Budget Static Budget Sales volume (in units) 14,000 22,500 Sales revenues $590,000 $4 $675,000 Variable costs 256,000 2$ 300,000 Contribution margin $334,000 24 $375,000 Fixed costs 237,000 2$ 244,000 Operating profit $97,000 24 $131,000 The flexible budget for sales revenues will be? O A. $675,000 B. $420,000 OC. $590,000 O D. $697,500

The actual information pertains to the month of June. As part of the budgeting p developed the following static budget for September. Colonial is in the process understanding the results. Actual Results Flexible Budget Static Budget Sales volume (in units) 14,000 22,500 Sales revenues $590,000 $4 $675,000 Variable costs 256,000 2$ 300,000 Contribution margin $334,000 24 $375,000 Fixed costs 237,000 2$ 244,000 Operating profit $97,000 24 $131,000 The flexible budget for sales revenues will be? O A. $675,000 B. $420,000 OC. $590,000 O D. $697,500

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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Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.70 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two…
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The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $ 12,000 $ 16,000 $ 17,500 Cost of Goods Sold (6,400 ) (8,000 ) (7,100 ) Gross Margin 5,600 8,000 10,400 Variable Cost (2,400 ) (3,000 ) (3,600 ) Fixed Cost (1,400 ) (1,400 ) (1,700 ) Net Income $ 1,800 $ 3,600 $ 5,100 Based on this information the Multiple Choice sales price flexible budget variance is a $5,500 unfavorable variance. sales price flexible budget variance is a $1,500 favorable variance. sales price flexible budget variance is a $5,500 favorable variance. sales price flexible budget variance is a $4,000 favorable variance.
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Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.70 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two…
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