Top managers of Root Industries predicted 2024 sales of 14,700 units of its product at a unit price of $7.50. Actual sales for the year were 14,500 units at $9.50 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $5,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible 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 (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Root Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 1 3 Budget Amounts. Actual Per Unit Results 7.5 2.7 14500 137750 2 (1)-(3) Flexible Budget Variance 108750 F U F Flexible Budget 14500 108750 39150 4 (3) - (5) Sales Volume Variance U F U 5 Static Budget 14700

Top managers of Root Industries predicted 2024 sales of 14,700 units of its product at a unit price of $7.50. Actual sales for the year were 14,500 units at $9.50 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $5,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible 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 (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Root Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 1 3 Budget Amounts. Actual Per Unit Results 7.5 2.7 14500 137750 2 (1)-(3) Flexible Budget Variance 108750 F U F Flexible Budget 14500 108750 39150 4 (3) - (5) Sales Volume Variance U F U 5 Static Budget 14700

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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Arberg Company’s controller prepared the following budgeted income statement for the coming year: Sales $417,000 Variable cost 287,730 Contribution margin $129,270 Fixed cost 75,950 Operating income $53,320 2. Suppose Arberg’s actual revenues are $29,900 more than budgeted. By how much will operating income increase?
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?
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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?
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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
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Philip Enterprises, distributor of compact disks (CDs), is developing its budgeted cost of goods sold for 1998. Philip has developed the following range of sales estimates and associated probabilities for the year: Sales Estimate Probability 60,000 25% 85,000 40% 100,000 35% Philip’s cost of goods sold averages 80% of sales. What is the expected value of Philip’s budgeted cost of goods sold? (E) a. $68,000 b. $67,200 c. $84,000 d. $85,000
⦁ 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)
1. Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $18,800,000 and cost of goods sold of $10,340,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $3,384,000. Total administrative expenses are expected to be $752,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: Question Content Area 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. Coral Seas Jewelry CompanyBudgeted Income StatementFor the Coming Year $- Select - - Select - Gross margin $fill in the blank 260046fcb048039_5 Less: $- Select - - Select - - Select - Operating income $fill in the blank 260046fcb048039_11 - Select - $- Select - Question Content Area 2. What if Coral Seas had…