The following budgeted data pertain to Zee Corporation for the month of Janua Quantity (Q) Static Budget 15,000 Tir Sales Revenue (13Q) $195,000 Variable Manufacturing Cost (4Q) 60,000 Fixed Manufacturing Cost 30,000 Variable Selling and Administrative Expenses (1Q) 15,000 Fixed Selling and Administrative Expenses 15,000 Zee Corporation incurred the following costs during the month: Actual Quantity (Q) 13,500 Sales Revenue $189,000 Variable Manufacturing Cost 56,000 Fixed Manufacturing Cost 30,000 Variable Selling and Administrative Expenses 13,500 Fixed Selling and Administrative Expenses 15,000 The activity variance for Variable Manufacturing cost for January is: O a. $4,000 F O b. $6,000 F O c. $4,000 U O d. $6,000 U
Q: Bay City Company's fixed budget performance report for July follows. The $367,000 budgeted total…
A: The difference that arises between the flexible budget and actual results is termed flexible budget…
Q: Nina Company prepared the following fixed budget for July using 7,600 units for budgeted sales.…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: Manter Corporation manufactures and sells a single product. The company uses units as the measure of…
A: Spending Variance = Actual Cost - Flexible Cost Flexible cost means the standard cost for actual…
Q: Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the…
A: Hi studentSince there are multiple subparts, we will answer only first three subparts. If you want…
Q: The actual information pertains to the month of September. As a part of the budgeting process,…
A: Static budget is that budget which does not change or this is fixed one. Static budget in business…
Q: actual costs are shown below. For Month Ended July 31 Sales Variable costs Direct materials. Direct…
A: Budget is the predetermination of the revenue, expenses, cost, material quantity, and no. of labor…
Q: 8"x 10" 12" x 16" Frame Frame 8.755 3.686 ral 6.510 3.090 12.348 5.616 Raphael Frame Company Sales…
A: Solution 1 Unit Sales,Year Ended 20Y6 Increase (Decrease)Actual Over Budget…
Q: The following is monthly budgeted cost and activity information for two activities in the purchasing…
A: A budget is an estimate of income and expenditures for a given future period of time, and it is…
Q: Crane Corporation’s master (static) budget for the year is shown below: Sales…
A: Formula: Selling price per unit = total sales value / number of units sold Division of total sales…
Q: Neeb Corporation manufactures and sells a single product. The company uses units as the measure of…
A: Activity Variance means difference in actual results and standard costs for actual output.
Q: The following budgeted production and sales information is for Flushing Company for the month of…
A: Budgeted sales means the estimated amount of money that could be earned by the entity by selling the…
Q: Odessa, Inc., reports the following information concerning operations for the most recent month:…
A: The standard is set in advance, and the actual performance is measured against it. If the actual…
Q: The selling and administrative expenses in the planning budget for June would be closest to:
A: Given information for Selling and Administration Expense will be: Budgeted units for June = 6900…
Q: Acme Company’s production budget for August is 18,900 units and includes the following component…
A: The objective of the question is to prepare a flexible budget for Acme Company for the month of…
Q: The static budget, at the beginning of the month, for Divine Décor Company, follows: Static…
A: Flexible budget variance is the difference between budgeted sales revenue for actual units and the…
Q: Bay City Company’s fixed budget performance report for July follows. The $587,000 budgeted total…
A: Variance is calculated by measuring the difference between the actual results and the flexible…
Q: Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December…
A: The flexible budget report is prepared to find the revenue and spending variances and activity…
Q: For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8,…
A: Budget means the expected value of future. Budget is not affected by the actual value as it is…
Q: Nina Company prepared the following fixed budget for July using 7,680 units for budgeted sales.…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: Bickel Corporation uses customers served as its measure of activity. The following report compares…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: Budgeted unit…
A: In this question, we have to maintain the selling and administrative expense budget it helps in…
Q: The following information was drawn from the accounting records of Smith Company Static Budget…
A: Sales price flexible budget variance = Actual sales - Flexible Budget sales
Q: Robinson Company has two products, A and B. Robinson’s budget for August follows: Master…
A: Variances are commonly used to analyze the performance of a business, department, or specific…
Q: The selling and administrative expense budget of Ruffing Corporation is based on budgeted unit…
A: The cash budget is prepared to record the cash transactions incurred during the period.
Q: A manufacturing company's budgeted income statement includes the following data: Data extracted…
A: Cash budget means expected cash receipts and expected cash payment with opening and closing cash…
Q: Seved Blossom, Inc. prepared the following master budget items for July: Produ tion and sales Var le…
A: Answer) Flexible Budget Production and Sales 26,000 units…
Q: Nina Company prepared the following fixed budget for July using 7780 units for budgeted sales.…
A: The flexible budget is prepared to compare the actual results with budgeted data. The variance is…
Q: Harlow Parts produces a single product at its Superior Plant. The master budget for July follows:…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: Veritas Ltd provides the following budget information for July: Selling price $25 Variable costs per…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: The following information was drawn from the accounting records of Smith Company Static Budget…
A: Variance arises when the actual costs is different from standard costs. The results are favorable…
Q: Acme Company's production budget for August is 17,800 units and includes the following component…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: Feemster Corporation manufactures and sells a single product. The company uses units as the measure…
A: Activity variance: Under the activity variance we subtract actual results from the flexible budget.…
Q: Nottingham Forest Products reports the following information concerning operations for the most…
A: Sales Activity Variance refers to the difference between budgeted or standard sales and actual…
Q: The results for March for Savery Parts follow: Actual (based on actual sales of 14,742 units) Master…
A: Variance analysis is the method adopted by the management which determines the difference between…
Q: Piechocki Corporation manufactures and sells a single product. The company uses units as the measure…
A: INTRODUCTION: Revenue is the amount of money received by a firm by selling items and/or delivering…
Q: Piechocki Corporation manufactures and sells a single product. The company uses units as the measure…
A: The revenue variance for an accounting period is the difference between budgeted and actual…
Q: The following data relate to a year's budgeted activity for Coronado Limited, a company that…
A: The break-even point indicates that total units are to be sold by the business entity to recover the…
Q: 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget…
A: Budget refers to the estimation of the incomes and expenses for a specified future period as per the…
Q: The next year's budget for Trend, Inc., a multi-product company, is given below: Product A Product B…
A: Sales mix variance is the variance in sales revenue due to difference in proportion of products…
Q: Flounder Company budgeted selling expenses of $27,000 in January, $31,500 in February, and $36,000…
A: A budget is an estimate whereas an actual is an real. The difference between budgeted expense and…
Q: The following information was drawn from the accounting records of Smith Company Static Budget…
A: Variance arises when the actual costs are different from the standard costs. The results are…
Q: nologies manufactures capacitors for cellular base stations an -n applications. The company's July…
A: A budget is a pecuniary plan for a particular upcoming period of time. A budget is prepared and…
Q: Generating a Flexible Budget; Spreadsheet Application Crane Corporation’s master (static)budget for…
A: Flexible Budget: The flexible budget is also known as the 'Variable budget' is a useful accounting…
Q: The following budgeted production and sales information is for Flushing Company for the month of…
A: Production budget is the forecast of the quantity of the production during the budgeted period. It…
Q: Multiple Choice $524 F $9,256 F $9,256 U $524 LL
A:
Q: The following is monthly budgeted cost and activity information for two activities in the purchasing…
A: Solution: Budgeted variable cost per invoice = $11,700 / 780 = $15 per invoice Flexible budget cost…
Q: The following data relate to a year's budgeted activity for Blossom Limited, a company that…
A: The objective of this question is to calculate the break-even sales in units for Blossom Limited…
Q: Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flexible…
A:
Step by step
Solved in 2 steps
- Reflector Glass Company prepared the following static budget for the year: Static Budget Units/Volume Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) 5,000 Per Unit $3 $15,000 1.5 7,500 7,500 3,000 $4,500 If a flexible budget is prepared at a volume of 8,500 units, calculate the amount of operating income. The production level is within the relevant range. OA. $9,750 B. $12,750 OC. $3,000 OD. $4,500The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $ 13,500 $ 19,000 $ 21,100 Cost of Goods Sold (6,700 ) (8,600 ) (7,250 ) Gross Margin 6,800 10,400 13,850 Variable Cost (2,700 ) (3,450 ) (4,350 ) Fixed Cost (1,700 ) (1,700 ) (2,000 ) Net Income $ 2,400 $ 5,250 $ 7,500 Based on this information the Multiple Choice variable operating cost volume variance is a $1,100 favorable variance. variable operating cost flexible budget variance is a $900 unfavorable variance. variable operating cost volume variance is a $900 favorable variance. variable operating cost flexible budget variance is a $1,100 favorable variance.The following monthly budgeted data are available for the International Company: Product A Product B Product C Sales $500,000 $300,000 $900,000 Variable expenses 300,000 210,000 720,000 Contribution margin $200,000 $90,000 $180,000 Budgeted operating income for the month is $220,000. Required: a) Calculate the break-even sales for the month. b) Calculate the margin of safety. c) Calculate the degree of operating leverage.
- 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…Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and actual overhead costs for March. WATERWAYS CORPORATIONManufacturing Overhead Budget(Static) For the Month of March Budgeted production in units 126,000 Budgeted costs Indirect materials $6,300 Indirect labor 16,380 Utilities 12,600 Maintenance 8,820 Salaries 44,800 Depreciation 17,100 Property taxes 3,100 Insurance 1,100 Janitorial 1,400 Total budgeted costs $111,600 WATERWAYS CORPORATIONManufacturing Overhead Costs (Actual)For the Month of March Production in units 127,000 Costs Indirect materials $6,336 Indirect labor 16,484 Utilities 12,730 Maintenance 8,872 Salaries 44,800 Depreciation 17,100 Property taxes 3,100 Insurance 1,100 Janitorial 1,400 Total costs $111,922 Waterways produced…A company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Cost per Variable Cost per Month Unit Serviced Revenue $4,800 $1,100 $700 Wages expense $40,200 Materials expense Other expenses $29,600 When the company prepared its planning budget at the beginning of November, it assumed that 28 units would be serviced, however the actual number of units serviced in November was 26. Actual revenue during November was $131,500. The revenue activity variance is: O $6,700F. $9,600F. $9,600U. O $2,900U.
- ( ces Nina Company prepared the following fixed budget for July using 7.780 units for budgeted sales. Actual sales were 7.480 units and actual costs are shown below. For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total variable costs Contribution margin Fixed costs Depreciation Machinery Supervisor salary Insurance Depreciation-Office equipment Administrative salaries i Total fixed costa Income For Month Ended July 31 Sales Variable costs Direct matanals Direct labor indirect materials Sales commissions Total Variable Costs Contribution margin Find costs Depreciation Machinery Supervisory salary Insurance Depreciation Offenequere Administrative salaries Total Fed Costs Fixed Budget Incue Variable Amount per Total Fixed Unit Cost $ 100 |===== $ 70,860 42,040 10,420 7,680 31,900 $164,900 Fixed Budget (7,788 units) 5 778,000 Actual Results 272,300 116,700 31,120 85,540 505,700 $ 272,300 Prepare a flexible budget performance…The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $ 10,000 $ 12,000 $ 12,700 Cost of Goods Sold (6,000 ) (7,200 ) (6,900 ) Gross Margin 4,000 4,800 5,800 Variable Cost (2,000 ) (2,400 ) (2,600 ) Fixed Cost (1,000 ) (1,000 ) (1,300 ) Net Income $ 1,000 $ 1,400 $ 1,900 Based on this information the Multiple Choice sales price flexible budget variance is a $2,700 unfavorable variance. sales price flexible budget variance is a $700 favorable variance. sales price flexible budget variance is a $2,700 favorable variance.Incorrect sales price flexible budget variance is a $2,000 favorable variance.Ayayai Company budgeted selling expenses of $37.200 in January, $43,400 in February, and $49,600 in March. Actual selling expenses were $38,600 in January, $42,800 in February, and $57,040 in March. The company considers any difference that is less than 5% of the budgeted amount to be immaterial. Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date. Month January February March $ $ $ Budget $ $ Actual By Month $ $ $ Difference P
- Harlow Parts produces a single product at its Superior Plant. The master budget for July follows: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit 8,200 $ 1,558,000 590,400 98,400 $ 869,200 212,000 370,000 $ 287,200 The following operating income statement shows the actual results for July: Harlow Parts Superior Plant Operating Results (For July) Quantity (units) Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit Required: 9,600 $ 1,760,800 780,394 111,040 $ 869,366 223,040 380,000 $ 266,326 Prepare a profit variance analysis for the Superior Plant for July. (Do not round intermediate calculations. Indicate the effect of each variance by…Winston Company had two products code named X and Y. The firm had the following budget for August: Product X $ 296,040 197,360 $ 98,680 50,000 Product Y $ 541,000 216,400 $324,600 108,000 $216,600 $ 50 $ 48,680 $ 120 Sales Variable Costs Contribution Margin Fixed costs Operating Income Selling Price per unit On September 1, the following actual operating results for August were reported: Product X $366,800 203,500 $ 163,300 58,500 $ 104,800 3,170 Sales Variable Costs Contribution Margin Fixed costs Operating Income Units Sold Product Y $ 546,800 224,500 $322,300 116,500 $ 205,800 9,850 Total industry volume for both products X and Y was estimated to be 138,500 units at the time of the budget. Actual industry volume for the period for products X and Y was 106,800 units. The contribution margin sales volume variance for Product X is: Multiple Choice $12,500 unfavorable. $15,800 favorable. $23,200 favorable. $23,200 unfavorable. Total $ 837, 040 413,760 $ 423,280 158,000 $ 265,280 $28,120…The following are the budgeted and actual income statements for Tucan Ltd, a manufacturing business, for the month of January: Budget Output (production and sales) Sales revenue Raw materials Labour Fixed overheads Operating profit Output (production and sales) Sales revenue Raw materials Labour Fixed overheads 5,000 units Flexed budget £ 500,000 200,000 150,000 70,000 80,000 £ units Actual 6,000 units £ 630,000 270,000 150,000 78,000 132,000 C