The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House - Mate for residences. Budgeted andactual operating data for the year 2020 were as followsStatic BudgetVictorHouse-MateTotal6,600$1,560,00027,000$3,140,000Number sold33,600$4,700,000Contribution marginActual ResultsVictorHouse-MateTotalNumber soldContribution margin5,400$1,400,00038,000$4,130,00043,400$5,530,000What is the total flexible - budget variance in terms of the contribution margin? (Round intermediary calculations to the nearest dollar.)A. $4,408,000 unfavorableO B. $152,400 unfavorableO C. $1,274.400 favorableO D. $152,400 favorable

Flexible budget variance in terms of contribution margin can be calculated with the help of the…

Answered: The Fortise Corporation manufactures…

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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LIME Corporation developed standard costs for direct material and direct labor. In 2020, LIME estimated the following standard costs for one of their most well loved products, the LIME classic Mother's Pear Pie which had a brown sugar coating on top. Budgeted quantity Budgeted price Direct materials 2.0 pounds $6.25 per pound Direct labor 0.20 hours $13.00 per hour During September, LIME produced and sold 1,100 pies using 2,300 pounds of direct materials at an average cost per pound of $6.00 and 200 direct labor hours at an average wage of $13.25 per hour. The direct labor price variance during September is $260.00 unfavorable O $280.00 favorable O $50.00 unfavorable $50.00 favorable
The Millers inc manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2017 were as follows: Static Budget Victor House-Mate Total Number sold 20,000 80,000 100,000 Contribution margin $4,600,000 $15,200,000 $19,800,000 Actual Results Victor House-Mate Total Number sold 21,500 64,500 86,000 Contribution margin $6,665,000 $14,190,000 $20,855,000 What is the total sales-mix variance closest to in terms of the contribution margin? Choose one below: $613,000 favorable $172,000 favorable $172,000 unfavorable There is no correct solution $387,000 favorable
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: fabrication, $246,000; assembly, $144,000, and setup, $110,000. Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantities for each project by activity are as follows: Fabrication Assembly Setup Basic 2,000 dlh 8,000 dlh 5 setups Deluxe 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year.What is the activity-based factory overhead per unit for the Deluxe kayak? a.$41.80 b.$158.20 c.$100.00 d.$154.54
A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Production Dept. Service Cost Center Supervision Maintenance Occupancy Dept.1 Dept. 2 Supervision Equipment maint. Building occunpany 10% Direct costs in the various departments are as follows: 10% 5% 40% 45% 45% 55% 10% 35% 45% Direct Cost P 35,000 Label si S2 Department Supervision Équipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 30,000 90,000 350,000 450,000 S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250
WHAT IS THE ANSWER OF THE 3? The Chair Company manufactures two modular types of chairs: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2012 are: Static Budget Residential Office Total Number of chairs sold 260,000 140,000 400,000 Contribution margin $26,000,000 $11,200,000 $37,200,000 Actual Results Residential Office Total Number of chairs sold 248,400 165,600 414,000 Contribution margin $22,356,000 $13,248,000 $35,604,000 Required: Compute the following variances in terms of contribution margin: a. Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance. b. Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.
Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [ Equipment setup, 100 setups, 60 setups,$88,000 ง Required: 1. "Calculate the manufacturing overhead allocation rate for each activity using ABC 2. Calculate the cost of the Blue Phone." 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
Based on a predicted level of production and sales of 24,000 units, a company anticipates total contribution margin of $79,200, fixed costs of $24,000, and operating income of $55,200. Based on this information, the budgeted operating income for 21,000 units would be: Multiple Choice $55,200. $103,200. $45,300. $44,571. $79,200.
Fisher-Price manufactures two products, Bassinet and Swing, which use raw materials, pins and clips. One bassinet uses 4 units of pins and 3 units of clips. One swing uses 2 units of pins and 6 units of clips. One pin is expected to cost $7 and one clip is expected to cost $5. Sales and finished goods inventory budget for the year 2020 are as follows: Bassinets Swings Budgeted sales 5,000 units Budgeted sales 7.000 units Opening inventory 1,000 units Opening inventory 2,000 units Closing inventory 600 units Closing inventory 800 units Selling price $400 Selling price $300 Raw material inventory budget for the year 2020 are as follows: Pins Clips Opening inventory 2,400 units Opening inventory 3,300 units Closing inventory 500 units Closing inventory 600 units The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as…
Friday Night, Inc. manufactures high-quality 5-liter boxes of wine which It sells for $14 per box. Below is some information related to Friday Night's capacity and budgeted foed marufacturing costs for 2021; Denominator Level Capacity Concept Days of Hours of Fixed Manufacturing Production ProductionBoxes per Overhead per Period per Perlod per Day Hour Theoretical capacity Practical capacity Normal capacity Master budget capacity $2,500,000 $2.500.000 $2,500.000 $2.500,000 22 300 362 310 310 310 16 250 175 16 16 200 Production during 2021 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/21. Actual varlable manufacturing costs were $1,762,200 (there are no varlable cost variances). Actual foed manufacturing overhead costs were $2.500.000. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. What is gross margin under practical capacity? Hint: don't forget the production-volume variance…
Company A manufactures two modular types of doors: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2018 are: Static Budget Residential Office Total Number of chairs sold 260,000 140,000 400,000 Contribution margin $26,000,000 $11,200,000 $37,200,000 Actual Results Residential Office Total Number of chairs sold 248,400 165,600 414,000 Contribution margin $22,356,000 $13,248,000 $35,604,000 Required: Compute the following variances in terms of contribution margin: a. Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance. b. Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.
Solomon Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Solomon expects to incur $640,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 4,600 6,600 4,800 16,000 Machine hours 1,200 2,300 2,900 6,400 Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.
Prepare a flexible budget for the three sales levels under consideration. Waterway manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,900 canoes, 3,340 canoes, and 3,550 canoes. Canoes sell for $990 each. The standard variable cost information for a canoe is as follows. Direct materials $ 297 Direct labor 112 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 534 Annual fixed overhead cost is expected to be: Maintenance $ 20,600 Depreciation 43,500 Insurance 29,500 Rent 33,690 Total $ 127,290

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