Top managers of Juda Industries predicted 2018 sales of 14,700 units of its product at a unit price of $7.00. Actual sales for the year were 14,000 units af $11.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $45,000 exceeded budgeted fixed costs by $2,000. Prepare Juda's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?7 Prepare a flexibie budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (FYUnfavorable (U) input blank.)

Top managers of Juda Industries predicted 2018 sales of 14,700 units of its product at a unit price of $7.00. Actual sales for the year were 14,000 units af $11.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $45,000 exceeded budgeted fixed costs by $2,000. Prepare Juda's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?7 Prepare a flexibie budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (FYUnfavorable (U) input blank.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Click Draperies makes and sells curtains. Information related to its performance in 2020 is given below: (Click the icon to view the data.) Calculate Click Draperies' flexible budget for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income. Calculate Click's flexible budget for (a) revenues. Begin by determining the formula and then solve for the amount. Actual units sold 1,560 X Budgeted selling price per unit = Flexible budget for revenues × $ 361,920 232 Calculate Click's flexible budget for (b) variable costs. Begin by determining the formula and then solve for the amount. Actual units sold 1,560 X Budgeted variable cost per unit × $ 108 = Calculate Click's flexible budget for (c) fixed costs. Click's flexible budget for fixed costs is $ 73,000. = = Flexible budget for variable costs 168,480 Calculate Click's flexible budget for (d) operating income. Begin by determining the formula and then solve for the amount. (Abbreviations used: rev = revenue, vc =…
Rakesh
A retail business budgets for a period with a total sales revenue (operating revenue) of $ 65,000,000. Total operating costs (fixed and variable costs) are expected to amount to 85% of sales revenue. Budgeted coverage rate is 30%.a) What is the budgeted operating profit?b) What is budgeted zero point sales?
In a recent year a car manufacturer sold 217,044 cars. The company budgeted to sell 226,244 cars during the year. The budgeted sales price for each car was $33,000 and the actual sales price for each car was $33,300. AQ-Actual Quantity SQ-Standard Quantity AP Actual Price SP Standard Price Compute the sales price variance and the sales volume varjance and identify each variance as favorable or unfavorable. Actual Sales Flexible budget Budgeted Sales
The following data relates to a company's operating budget for its next operating year Sales price per unit (E) 26 Sales volume units) 39,000 Costs: Materials () 30,000 Labour (E) 33.800 Energy (E 37,000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions Materials costs are variable. Labour costs are semi-variable with a fxed element of 15,000. Depreciation is a foxed cost. An allowance for an energy price increase of 11% has already been inchuded in the enegY costs The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by B% The sales vokume will increase by 10% The rise in the energy prices should be revised to 7% What will be the company's new materials cost for the year?
Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $159,370 budgeted expenses include $106,650 in variable expenses for desks and $18,720 in variable expenses for chairs, as well as $34,000 fixed expenses. The actual expenses include $35,400 fixed expenses. List fixed and variable expenses separately. Desk sales (in units) Chair sales (in units) Desk sales. Chair sales Total expenses Income from operations Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Actual Results Variances 135 72 $170, 100 42,480 159,370 $ 53,210 Fixed expenses income from operations 141 80 $176,250 48,400 168,050 $ 56,600 Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. $6,150 F 5,920 F 8,680 U $3,390 F BUSINESS SOLUTIONS Flexible Budget Performance Report For Quarter Ended June 30 Flexible Budget Actual Results Variance Fav/Unt. Unfavorable Favorable…
During the current year, Cullumber Corporation expects to produce 10,000 units and has budgeted the following: net income $350,000; variable costs $1,290,000; and fixed costs $110,000. It has invested assets of $1,650,000. What was the company's budgeted ROI? What was its budgeted markup percentage using a total cost approach? Budgeted ROI per unit Budgeted markup percentage $ %
Zaria Inc. provides the following budgeted data for producing 10,000 units of one of its products in its static budget for the next quarter: Sales per unit $60 Variable costs per unit $40 Fixed costs for the quarter $20,000 What would be the amount of operating income to be reported in the flexible budget prepared at a volume of 12,000 units? Group of answer choices $620,000 $216,000 $220,000 $300,000
← The operating budget for a certain company shows a net income of $353,920. To achieve this, the company is targeting sales of $644,000, variable costs of $283.360, and fixed costs of $6,720. Compute the break-even point in sales dollars. The break-even point in sales dollars is $ (Round to the nearest cent as needed Round att intermediate values to six decimal places as needed.)
AAA Manufacturing Firm has provided the following sales, cost and expense figures in relation to expected operations for the coming year. You are tasked to prepare forecast Statements of Financial Performance using flexible budget techniques and incorporating the following information.All units are sold when manufactured due to the highly perishable nature of the company’s product. As such there are no inventories of raw materials, work in process or finished goods on hand.The selling price of the company’s single product is $50.00 and the expected sales quantity for the coming year is in the vicinity of 20,000 and 25,000 units.Required: Prepare an Income Statement budget using flexible budgeting techniques at production and sales levels of:(Scenario a) 20,000 units(Scenario b) 25,000 units Question: 1. Total fixed factory overhead under Scenario A (No dollar sign and comma) 2. Gross profit under Scenario B? (No dollar sign and comma) 3. Total non-manufacturing expenses under…
⦁ XYZ Company budgeted to produce 20,000 units for the year ending December 31, 2021 at sales revenue of $400,000 and fixed cost of $150,000 and variable costs of $80,000. During the year ended December 31,2022, it produced 26,000 units. Required:Prepare a flexible budget, in good form, to reflect its level of attainment in a performance report. Use the following headings: Static budget, flexible budge and Variances (Fav or UF)
Gadubhai