None The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the divisionwere budgeted for 2022 at $1,250,000. The only variable costs budgeted for the division were cost ofgoods 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 costs, and $95,000 fornoncontrollable fixed costs. Actual results for these items were as follows:InstructionsSales$1,175,000Cost of goods soldVariable545,000Fixed140,000Selling and administrativeVariable82,000Fixed100,000Noncontrollable fixed105,000(a) Prepare a responsibility report for the Real Estate Products Division for 2022.(b) Compute ROI assuming the division is an investment center, and average operating assets were$1,200,000.

a.) Responsibility Report for Real Estate Products Division for 2022DescriptionAmount…

Answered: The Real Estate Products Division of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.
At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
The Real Estate Products Division of Ivanhoe Co. is operated as a profit center. Sales for the division were budgeted for 2022 at $1,260,000. The only variable costs budgeted for the division were cost of goods sold ($618,000) and selling and administrative ($84,000). Fixed costs were budgeted at $136,000 for cost of goods sold, $126,000 for selling and administrative costs, and $99,000 for noncontrollable fixed costs. Actual results for these items were as follows: Sales Cost of goods sold Variable Fixed $1,187,572 551,000 150,000 Selling and administrative Variable Fixed 90,000 104,000 Noncontrollable fixed 109,000 Prepare a responsibility report for the Real Estate Products Division for 2022. (List variable costs before fixed costs.) IVANHOE CO. Real Estate Products Division Responsibility Report 2022 Budget $ $ Actual $ Difference Favorable (F) Unfavorable (U) Not Applicable (NA
The sports equipment division of Kevin Hall Company is operated as a profit centre. Sales for the division were budgeted for 2022 at $896,000. The only variable costs budgeted for the division were cost of goods sold ($442,000) and selling and administrative costs ($64,000). Fixed costs were budgeted at $102,000 for cost of goods sold, $92,000 for selling and administrative costs, and $75,000 for noncontrollable fixed costs. Actual results were as follows: Sales $864,000 Cost of goods sold Variable 416,000 Fixed 106,000 Selling and administrative costs Variable 65,000 Fixed 73,000 Noncontrollable fixed costs 91,000 Assume the division is an investment centre, and average operating assets were $1,000,000. What is ROI?
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).
Bramble Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000 $101,000 favorable Variable cost of goods sold 680,000 56,000 unfavorable Variable selling and administrative expenses 124,000 24,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Prepare a responsibility report for the home division.
During 2022, Sunland Corp. produced 37,200 units and sold 37,200 for $16.00 per unit. Variable manufacturing costs were $6.00 per unit. Annual fixed manufacturing overhead was $74,400 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $18,600. Suppose the accountant for Sunland Corp. uses normal-absorption costing and uses the budgeted volume of 46,500 units to allocate the fixed overhead rather than the actual production volume of 37,200 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs.
Bonita Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,399,000 $101,000 favorable Variable cost of goods sold 680,000 55,000 unfavorable Variable selling and administrative expenses 124,000 25,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. (a) Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.) BONITA COMPANYHome DivisionResponsibility ReportFor the Year Ended…
Bonita Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,399,000 $101,000 favorable Variable cost of goods sold 680,000 55,000 unfavorable Variable selling and administrative expenses 124,000 25,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) The expected ROI (1) Variable cost of goods sold is…
Maira Corporation has set various goals and the management is taking various appropriate actions to ensure the company achieves these goals. One of the actions is to reduce operational costs, which exceeds budgeted amount. Which of the following functions best describes this process? A. Decision-making B. Planning C. Directing operational activities D. Controlling 2. HOC Company's costs for the month of June 2021 were as follows: direct materials, RM25,000; direct labor, RM32,500; selling, RM16,000; administrative, RM15,500; and manufacturing overhead, RM44,400. The beginning work in process inventory was RM17,000 and the ending work in process inventory was RM7,000. What was the cost of goods manufactured for the month? (a) RM105,000 (b) RM31,500 (c) RM133,400 (d) RM111,900 3. Chery Company manufactures and sells washing machines. In order to make assembly of the machines faster and easier, some of the metal parts in the machines are coated with grease. How should the cost of…
Bowflex Corporation is organized as a decentralized company. The strength division is organized as a Cost Center and reports the following costs: Line Item Full Year Budget Full Year Actuals Production Line Wages $20,000 $30,000 Production Line Salaries 40,000 55,000 Property Depreciation 25,000 20,000 Overhead Costs 15,000 12,000 Prepare a brief Cost Center Budget Performance Report AND include what the first action you would take as a financial controller would be.
Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs. Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits (losses) Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) All depreciation charges are fixed. Manufacturing depreciation is expected to increase by 10 percent in year 2. Marketing and administrative depreciation are expected to remain the same for year 2. Sales volume is expected to increase by 5 percent, but prices are expected to fall by 10 percent. Materials costs per unit are expected to decrease by 8 percent. Unit variable cash manufacturing costs are expected to increase by 15 percent. Fixed cash costs are expected to…

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