The company planned to run four courses with a total of 63 students; however, itactually ran four courses with a total of only 53 students. The actual operating resultsfor September were as follows:RevenueInstructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expensesActual$53,170$11,000$17,490$1,890$4,900$2,440$3,651Prepare a flexible budget performance report for September. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positive values. 2.The Gourmand Cooking School runs short cooking courses at its small campus.Management has identified two cost drivers it uses for budgeting purposes-thenumber of courses and the total number of students. For example, the school mightrun two courses in a month and have a total of 63 students enrolled in those twocourses. Data concerning the company's cost formulas appear below:Instructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expensesFixed Cost per Month Cost per Course Cost per Student$2,930$280$60$1,240$4,900$2,300$3,600$46$7For example, administrative expenses should be $3,600 per month plus $46 per courseplus $7 per student. The company's sales should average $890 per student.The company planned to run four courses with a total of 63 students; however, itactually ran four courses with a total of only 53 students. The actual operating resultsfor September were as follows:15+D

The flexible budget is prepared to compare the actual and planned data for production. The revenue…

Answered: The company planned to run four courses…

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

he budget for the month of May was for 15,600 units at a direct materials cost of $30 per unit. Direct labor was budgeted at 39 minutes per unit for a total of $140,400. Actual output for the month was 10,000 units with $165,000 in direct materials and $92,775 in direct labor expense. The direct labor standard of 39 minutes was obtained throughout the month. Variance analysis of the performance for the month of May would show a(n): unfavorable direct labor price (rate) variance of $2,775 favorable materials efficiency (quantity) variance of $9,000. unfavorable direct labor efficiency variance of $2,775 favorable direct labor efficiency variance of $2,775
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Variable Fixed Component per Month Component per Actual Total Job for February $ 36,170 $ 7,950 $ 9,360 $ 2,770 $ 1,690 $ 2,870 395 Revenue $ 278 Technician wages Mobile lab operating expenses Office expenses $ 8,100 $ 4,900 $ 2,500 $ 1,620 $ 2,870 $ $ 33 3 Advertising expenses Insurance Miscellaneous expenses 950 $ 1 $ The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $9,360. The company expected to work 140 jobs in February, but actually worked 144 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F"…
The master budget at Monroe Manufacturing last period called for sales of 43,700 units at $59 each. The costs were estimated to be $43 variable per unit and $541,000 fixed. During the period, actual production and actual sales were 46,700 units. The selling price was $58 per unit. Variable costs were $45 per unit. Actual fixed costs were $532,000. Required: Prepare a sales activity variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Get Your Pizza On, Inc.’s flexible budget cost formula for supplies, a variable overhead cost, is $4.87 per unit of output. The company's flexible budget performance report for last month showed a $7,684 unfavorable variance for supplies. During that month, 12,400 units were produced. Budgeted activity for the month was 10,600 units. What are the total actual cost incurred for supplies? Select one: a. $59,306 b. $43,948 c. $52,704 d. $68,072 e. $37,420
A company's master budget for October is to manufacture and sell 30,900 units, for a total sales revenue of $288,000, total variable costs of $167,490, and total fixed costs of $25,800. The company actually manufactured and sold 32,900 units, and generated $73,800 of operating income in October. The total flexible-budget variance in October was: (Do not round intermediate calculations.) Multiple Choice $7,800 unfavorable. $48,000 unfavorable. $5,672 unfavorable. $28,710 unfavorable. $40,328 unfavorable.
Please do not give solution in image format thanku
The following information is available for Brownstone Products Company for the month of July: Master Budget 4,000 Units Actual 3,800 Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses 9,700 Fixed selling and administrative expenses 11,100 $ 60,600 21,000 14,000 $ 60,000 16,000 13,900 8,000 10,500 Required: 1. What was the master budget variance for July? Was this variance favorable or unfavorable? 2. Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin and in terms of operating income. 4. Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flexible budget for each of the following two output levels: a. 3,950 units. b. 4,350 units.
In September, Larson Inc. sold 42,000 units of its only product for $255,000 and incurred a total cost of $236,300, of which $26,100 is fixed costs. The flexible budget for September showed total sales of $310,000. Among variances of the period were: Total variable cost flexible budget variance = $8,400 unfavorable Total flexible-budget variance = $66,400 unfavorable Sales volume variance in terms of contribution margin = $28,300 unfavorable The actual amount of operating income earned in September was: a. $18,700 b. $19,500 c. $20,300 d. $21,100 e. $21,900
Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: Assembly DepartmentCost ReportFor the Month Ended March 31 Actual Results Planning Budget Variances Machine-hours 15,000 20,000 Variable costs: Supplies $ 8,700 $ 9,300 $ 600 F Scrap 29,400 31,500 2,100 F Indirect materials 86,600 102,000 15,400 F Fixed costs: Wages and salaries 75,100 71,000 4,100 U Equipment depreciation 101,000 101,000 0 Total cost $ 300,800 $ 314,800 $ 14,000 F After receiving a copy of this cost report, the supervisor of the Assembly Department stated, “These reports are super. It makes me feel really good to see how well things are going in my…
Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.90 Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person $ 2.60 Delivery vehicle $ 680 $2.00 Equipment depreciation $ 440 Rent $1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries.
The master budget at Monroe Manufacturing last period called for sales of 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units. The selling price was $56 per unit. Variable costs were $43 per unit. Actual fixed costs were $530,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Actual Sales revenue 2,604,000 Less: Manufacturing Variances Monroe Manufacturing Profit Variance Analysis Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 46,500 U 2,650,500 $ 2.479,500 Variable costs 1,999,500 Contribution margin $ 604,500 1,906,500 $ 744,000 S 2,479,500 Less: Fixed costs Operating profits $ 530,000 74,500 (9,000) F 539,000 Խ $ 744.000 1,940,500
TipTop Flight School offers flying lessons at a small municipal airport. The school’s owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below: TipTop Flight SchoolVariance ReportFor the Month Ended July 31 Actual Results Planning Budget Variances Lessons 155 150 Revenue $ 36,970 $ 36,000 $ 970 F Expenses: Instructor wages 9,920 9,750 170 U Aircraft depreciation 4,805 4,650 155 U Fuel 3,270 2,700 570 U Maintenance 2,530 2,360 170 U Ground facility expenses 2,205 2,250 45 F Administration 3,815 3,920 105 F Total expense 26,545 25,630 915 U Net operating income $ 10,425 $ 10,370 $ 55 F After several months of using these reports, the owner has become frustrated. For example, she is quite confident that instructor wages were very tightly controlled in July, but the report shows an unfavorable variance. The…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS