Required Informati(The following information applies to the questions displayed below.]Adger Corporation is a service company that measures its output based on the number of customers served. Thecompany provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actualresults for May as shown below:pexTAElenent Variable Elementper CuntomerServed$ 5,800$1,200$ 570ActualTotalfor May$184,000$ 105,300$ 16,500* 41,600perMonthRevenueEnployee salaries and wagenTravel expennesother expenees$65,00044,000When preparing its planning budget the company estimated that it would serve 30 customers per month; however, duMay the company octually served 35 customers.5. What net operating income would appear in Adger's flexible budget for May?Net operating income

Flexible budget will be made on the basis of actual volume i.e. 35 customers

(The following formation Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: lenent Variable Element per Cuntomer Served $ 5,800 $1,200 $ 570 paxTA per Month Actual Total for May $ 184,000 $ 105,300 $ 16,500 *41,600 Revenue Enployee salaries and wagen Travel expenses other expenses $65,000 $44,000 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, du May the company octually served 35 customers. 5. What net operating income would appear in Adger's flexible budget for May? Net operating income

(The following formation Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: lenent Variable Element per Cuntomer Served $ 5,800 $1,200 $ 570 paxTA per Month Actual Total for May $ 184,000 $ 105,300 $ 16,500 *41,600 Revenue Enployee salaries and wagen Travel expenses other expenses $65,000 $44,000 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, du May the company octually served 35 customers. 5. What net operating income would appear in Adger's flexible budget for May? Net operating income

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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2) Conner Hardware, Inc's static budget for the year is shown below: Sales (25,000 units) Cost of Goods Sold: Direct Material Direct Labor Overhead (includes $4 per unit Variable cost) Gross Profit Selling Expenses Sales Commissions (Variable) Rent (Fixed) Insurance (Fixed) General and administrative expenses Salaries (fixed) Rent (Fixed) Depreciation (Fixed) Sales Variable Cost: Direct Materials Direct Labor Variable OH Sales Commission Total Variable Cost Contribution Margin Fixed Cost: Fixed OH Rent Expense-Selling Insurance Expense Salaries Expense Rent Expense-General Prepare a flexible budget for Connor Hardware Inc. that shows a detailed budget for its static budget and its actual sales volume of 40,000 units. Use the contribution margin approach. Depreciation Expense Total Fixed Cost Income from Operations $150,000 300,000 175,000 25,000 units 50,000 90,000 35,000 100,000 40,000 60,000 $1,200,000 625,000 575,000 375,000 $ 200,000 40,000 units
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Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 31,800 89,500 112,500. 10,700 278,500 $ 523,000 Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $ 129,900 98,500 163,500 131,100 $ 523,000 Current Year $ 411,225 209,550 1 Year Ago $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: 4 12,100 9,525 $ 75,250 101,500 163,500 104,750 $ 445,000 $ 673,500 2 Years Ago 642,400 $ 31,100 $ 1.90 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $51,250 83,500 163,500 79,250 $ 377,500 1 Year Ago $ 345,500…
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 3,000 $ 4.00g $ 205 + $ 0.759 The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much utilities expense would be included in the planning budget? Multiple Choice $1,500 $1,630 $1,705 $1,730
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Roger Company’ sells one product, and has provided the following variable and fixed estimates for budgetingpurposes.Variable element per unit Fixed element per monthRevenue $25Operating costs $4.75 $3,150For the month of August, it planned on selling 200 units, but actual units sold were 180 units. Actual revenuefor the month was $4,410 and actual operating costs were $3,865. a. What is the amount shown for revenue under the flexible and planning budget for August? b. What is the amount shown for total operating costs under the flexible and planning budgets for August?
Two businesses, p td. And q Itd. Sell the same type of product in the same type of market. Their budgeted profit and loss accounts for the coming year are as under: Q Ltd. P Ltd. Sales 1,50,000 1,50,000 Less: Variable Costs 1,20,000 1,00,000 Fixed Costs 15,000 1,35,000 35,000 1,35,000 Budget Net Profit 15,000 15,000 You are required to: Calculate the break-even point for each business Calculate the sales volume at which each business will earn rs.5,000 Profit. State which business is likely to earn greater profit in conditions of 1. Heavy demand for the product 2. Low demand for the product, and, briefly give your argument also.
The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 10,000 $ 13,000 Cost of Goods Sold (5,000 ) (6,600 ) Gross Margin 5,000 6,400 Variable Cost (2,000 ) (2,700 ) Fixed Cost (2,500 ) (1,900 ) Net Income $ 500 $ 1,800 Based on this information Ashton Company has a Multiple Choice $1,300 favorable sales variance $1,300 unfavorable sales variance $3,000 favorable sales variance $3,000 unfavorable sales variance
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