Top managers of White industries predicted 2024 sales of 14,700 units of its product at a unit price of $8.00. Actual sales for the year were 14,000 units at $10.50 each. Variable costs were budgeted at $2.40 per unit, and actual variable costs were $2.50 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed coats by $5.200. Prepare White'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 50 variances, leave the Favorable (FyUnfavorable (U) input blank) Units Sales Revenue Vanable Costs Contribution Margin Budget Amounts Per Unit White Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 3 Actual Results 2 (1)-(3) Flexible Budget Variance CID Flexible Budget (3)-(5) Sales Volume Variance Static Budget

Top managers of White industries predicted 2024 sales of 14,700 units of its product at a unit price of $8.00. Actual sales for the year were 14,000 units at $10.50 each. Variable costs were budgeted at $2.40 per unit, and actual variable costs were $2.50 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed coats by $5.200. Prepare White'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 50 variances, leave the Favorable (FyUnfavorable (U) input blank) Units Sales Revenue Vanable Costs Contribution Margin Budget Amounts Per Unit White Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 3 Actual Results 2 (1)-(3) Flexible Budget Variance CID Flexible Budget (3)-(5) Sales Volume Variance Static Budget

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

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.
Benefit Pillow Company projected sales of 76,000 units for the year at a unit sales price of $13.00. Actual sales for the year were 72,000 units at $20 per unit. Variable costs were budgeted at $4.50 per unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $377,000 while actual fixed costs amounted to $400,000. What is the flexible budget variance for operating income? A. $463,000 unfavorable OB. $235,000 unfavorable OC. $463,000 favorable D. $486,000 favorable CZER
The condensed budgeted income statement for the Kimberly and Matthew partnership for 2022 is as follows in Fig : A cost behaviour analysis indicates that 75% of the cost of goods sold is variable, 42% of the selling expenses are variable, and the administrative expenses are variable. (Use the CVP income statement format in calculating operating income.)
The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 12 Sales volume (units) 15,000 Costs: Materials (E) 52,500 Labour (E) 33,800 Energy (E) 101.000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions: Materials costs are variable. Labour costs are semi-variable with a fixed element of £15,000. Depreciation is a fixed cost. An allowance for an energy price increase of 12% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by 11% The sales volume will increase by 11% The rise in the energy prices should be revised to 3% What will be the company's new selling price per unit for the year?
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 11,000 2nd Quarter 12,000 3rd Quarter 4th Quarter 13,000 Budgeted unit sales 14,000 The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 2.…
Blossom was about to close the books on the company's second year of business. Things had gone well, but not quite as well as the company had planned. Management had expected sales volume to be 23,400 units, compared to actual sales of 21,900 units. The company's budgeted information is as follows. Selling price DM cost DL cost Variable-MOH cost Fixed-MOH costs Fixed SG&A costs (a1) Sales volume Prepare a master budget and a flexible budget for the company. Sales Variable costs: DM DL Variable-MOH Fixed costs: Fixed-MOH $25.00 per unit $5.00 per unit $4.80 per unit $1.90 per unit Fixed SG&A $158,000.00 $113.500.00 Operating income Per Unit $25.00 Contribution margin $13.30 5.00 4.80 1.90 $ $ Flexible Budget 21,900 $ $ Master Budget 23,400
Calculate budgeted contribution margin per unit?
n an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 400,000 units of the standard model and 110,000 units of the deluxe model during the coming year. The standard model requires 0.10 direct labor hour per unit, and the deluxe model requires 0.16. The controller has developed the following cost formulas for each of the four overhead items: Cost Formula Maintenance $34,600 + $1.25 DLH Power $0.50 DLH Indirect labor $68,200 + $2.30 DLH Rent $31,700 Required: 1. Prepare an overhead budget for the expected activity level for the coming year. Meliore, Inc.Overhead BudgetFor the Year Ended December 31 Per DLH Budgeted direct labor hours ? Variable costs: Maintenance ? ? Power ? ? Indirect labor ? ? Total variable costs ? Fixed costs:…
Variable Costs Total Variable Costs Depreciation Supervision Total Costs Total Fixed Costs Direct Labor Activity Level Direct Materials Fixed Costs Finished Units Overhead
It is budgeting time for Rod Co. The following assumptionswere agreed upon for the next year after strategic planning,which covered a five-year horizon: 1. Sales are estimated tobe at 70,000 units at its national selling price of P126. 2.Sales discounts are given to various customers at differentrates, and the net to gross ratio is at 93%. 3. Markup onmerchandise is at 45% of the invoice cost. Beginninginventory is P80,900 and is expected to be reduced byP15,000 at the end of the period. 4. Selling andadministrative expenses are expected to be 15% of grosssales. 5. Depreciation is computed at P500,000. 6. Seventy-five percent (75%) of sales are on credit. Doubtful accountsexpense is estimated to be 1.5% of credit sales. Required:What is the budgeted income statement for Rod Co.
Prepare a complete projected income statement in the contribution format for each scenario, in the manner of a flexible budget. Please show work Carolina Manufacturing Company has been operating at a loss for several years. A management team has assembled to determine what course of action to take next year to reach profitability. They begin by reviewing the most recent income statement (below). Carolina Manufacturing Company Income Statement For the Year Ended December 31 Sales (45,000 units at $15) Less cost of goods sold: Net loss Direct materials Direct labor Manufacturing overhea Gross margin Less operating expenses Selling expenses Variable Sales commissions Shipping 135,000 117,450 147,750 Fixed (advertising, salaries) Administrative expenses Variable (billing and other) Fixed (salaries and other) 40,500 8,100 180,000 $675,000 400,200 274,800 228,600 2,700 72,000 74,700 ($28,500)
Mars Company is in the period of budgeting for next year. The Sales manager forecasted the number of units to be sold as 5000 units and determined the selling price at 10 OMR per unit. The management revised these estimates with a 10% decrease in seling price and with a 20 % increase in the number of units sold. According to these revised estimates, which of the following is the revised Sales (OMR)? Select one: a. OMR 44000 b. OMR 54000 c. OMR 66000 G. OMR 50000