The manager of Bonita, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company's actual performance. Sales volume came in lower than expected, at 4,900 units, compared with budgeted sales of 5,400 units. Bonita's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $52 per unit. Budgeted fixed costs totaled $137,100. There were no variable SG&A costs. Prepare Bonita's flexible budget for the year just ended. V: $ $

The manager of Bonita, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company's actual performance. Sales volume came in lower than expected, at 4,900 units, compared with budgeted sales of 5,400 units. Bonita's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $52 per unit. Budgeted fixed costs totaled $137,100. There were no variable SG&A costs. Prepare Bonita's flexible budget for the year just ended. V: $ $

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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The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2016 at $1,250,000. The only variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative and $95,000 for noncontrollable fixed costs. Actual results for these items were: Sales $1,175,000 Cost of goods sold Variable 545,000 Fixed 140,000 Selling and administrative Variable 82,000 Fixed 100,000 Noncontrollable fixed 105,000 Instructions (a) Prepare a responsibility report for the Real Estate Products Division for 2016. (b) Assume the division is an investment center, and average operating assets were $1,200,000. Compute Return On Investment(ROI).
. Nintendo was at year-end and was disappointed based on its preliminary results. Management expected sales volume to be 25,000 handheld video gaming units instead of the actual sales of 23,000 units. The company's budgeted information was as shown below: Unit selling price $100 Unit DM cost $25 Unit DL cost $10 Unit Variable-MOH cost $5 Fixed-MOH costs $360,000 Fixed SG&A costs $280,000 a. Prepare a master budget and a flexible budget for Nintendo. b. Compare the flexible budget to the master budget, determining the sales activity variances for all budgeted income statement accounts, specifying amount, and whether the variance is favorable (F) or unfavorable (U).
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Matthew, the production manager, was pleased at the company's income statement results. Actual DL cost was only $65,540, compared to the budgeted $73,600, while actual sales volume came in 200 units below original projections. The company actually used 2,900 DL hours to make the 1,400 units produced and sold. Each unit was budgeted to take 2 DL hours; each DL hour was budgeted at $23.00 per hour. Calculate the company's DL price and DL efficiency variances. (Round intermediate calculations to to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,125.) DL price variance DL efficiency variance Save for Later $ $ Favorable Unfavorable Neither Favorable nor Unfavorable Attempts: unlimited Submit Answer
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Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $12 each and used a budgeted selling price of $12 per unit. Actual Budgeted Units sold 42,000 units 36,000 units Variable costs $168,000 $151,000 $58,000 Fixed costs $45,000 What is the static-budget variance of revenues? O A. $72,000 unfavorable OB. $6,000 unfavorable O C. $72,000 favorable O D. $4,000 favorable O Time Re esc
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As the new accountant for Cohen & Company, you have been asked to provide a succinct analysis of financial performance for the year just ended. You obtain the following information that pertains to the company's sole product: Actual Master Budget Units sold 35,000 40,000 Sales $ 385,000 $460,000 Variable costs 215,000 275,000 Fixed costs 148,125 140,000 Required: 1. What was the actual operating income for the period? 2. What was the company's master budget operating income for the period? 3. (a) What was the total master budget variance, in terms of operating income, for the period? (b) Is this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell. ) 4. The total master budget variance for a period can be decomposed into a total flexible budget variance and a sales volume variance. (a) What was the total flexible - budget variance for the period? (b) Was this variance favorable or unfavorable? (c) What was the sales volume…