USE THE INFORMATION PROVIDED BELOW TO PREPARE THE PERFORMANCE REPORT FOR LONMIN LIMITEDLONMIN LTD MANUFACTURES A SINGLE PRODUCT. IT ORIGINALLY PLANNED AND SELL 18 000 UNITS DURING THE YEAR BUT THE ACTUAL ACTIVITY LEVEL WAS 22 000 UNITS.THE BUDGETED AND ACTUAL INCOME AND COST FOR THE YEAR AS FOLLWS orginal budgetactual resultvolume 18 000 units22 000 units R RSALES 2 520 0003 300 000COST OF SALES (1 670 000)2 132 000DIRECT MATERILS 720 000924 000DIRECT LABOUR 450 000594 000VARIABLE OVERHEADS 180 000264 000FIXED OVERHEADS 320 000GROSS PROFIT 850 000350 0001 168 000

Performance report in business shows comparison of standard cost at actual output and actual costs.…

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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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Rooney Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Amount Number Unit Amount Number Amount @ $ 700 @ 380 $ 319,200 (168,000) 151,200 $ 487,200 (259,200) 228,000 (114,000) $ 114,000 Sales 240 $168,000 560 @ $ 570 800 Variable cost (91,200) 76,800 |(19,000) $ 57,800 240 560 @ 300 = 800 %3D Contribution margin 240 320 560 @ 270 800 Fixed cost (95,000) Net income $ 56,200 Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. c. Calculate the break-even point in total number of units. d. Determine the number of units of each product e. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. f. Determine the margin of safety based on the combined sales…
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A company offers three products, A,B,C The current budget for the upcoming accounting period is presented below, by product: A B C # of units 18 12 30 Selling price per unit ($) 75 50 60 Variable cost per unit ($) 25 20 15 Fixed costs (total $) 500 360 900 There is a different customer market for each of these products. Fixed costs reflect product-specific machinery. Required 1. Identify which of the two methods to compute the break-even point best suits this scenario. 2. Describe why the method you identified in (1) best suits this scenario. 3. Compute the break-even point in units using this method.
H1. Account
Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 4,000 5,600 10,000 9,300 Sales $ $ 28,000 $ 15,120 $ 20,000 $ 19,530 Variable costs 3,200 5,600 10,000 9,770 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 5,000 $ 7,500 $ 12,400 $ 12,170 Operating income $ 23,000 $ 7,620 $ 7,600 $ 7,360 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $4,960 favorable. $5,660 favorable. $7,330 favorable. $8,030 favorable. $9,920 favorable. THE ANSWER IS NOT 8030 and I am not sure why
You have collected the standard cost card for one unit of the ‘Zeus’ which was in operation in the just ended period, details of which follow below: K Materials 7kg at K35.00 245.00 Labour 20 hours at K12.00 240.00 Variable overheads 20 hours at K8.00 160.00 Fixed overheads 20 hours at K15.00 300.00 945.00 Selling price 1,500.00 Profit…
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6. Prepare a budgeted income statement using the information shown. Sales units 84,000 22 Sales price per unit Uncollectible expense Direct material per unit Direct labor hours per unit Direct labor rate per hour Manufacturing overhead Variable sales and administration expenses per unit sold Fixed sales and administration expenses 1% $4 $ 1.50 0.8 19 $14,000 $ 2.10 $23,000 Тахes 15%* *of income before taxes %24
You have collected the standard cost card for one unit of the ‘Zeus’ which was in operation in the just ended period, details of which follow below: K Materials 7kg at K35.00 245.00 Labour 20 hours at K12.00 240.00 Variable overheads 20 hours at K8.00 160.00 Fixed overheads 20 hours at K15.00 300.00 945.00 Selling price 1,500.00 Profit…
le Fairfield Company management has budgeted the following amounts for its next fiscal year: Selling price per unit Variable expenses per unit Total fixed expenses $40.00 per unit $25.00 per unit $832,500 What is the break-even point in units? a. 55,500 units O b. 74,500 units O c. 33,300 units O d. 54,000 units Clear my choice to search
WXY Corporation manufactures lambs. Here below static budget and actual results are presented; Actual Results as of Dec,31,2011 Static Budget as of Jan,01,2011 Units sold 184.000 units 180.000 units Revenues $1.840.000 $1.800.000 Variable costs S901.600 $864.000 Fixed costs $190.000 $200.000 Required: a. Please prepare five column income statement performance report. b. Discuss the advantages of using flexible budgets in detail. Describe the purpose of variance analysis and its relation to responsibility management by using examples.
Question: Shoaib Co., is a manufacturing company. A summary of the budgeted profit statement for its next financial year is provide. The details is provided below: Rs. Rs. Sales (9,000 units at Rs. 32) 288,000 Less: Direct material 54,000 Direct wages 72,000 Production overhead Fixed 42,000 Variable 18,000 186,000 Gross profit 102,000 Less: Admin and marketing cost: Fixed 36,000 Variable 27,000 63,000 Net profit 39,000 Required: Calculate breakeven point in units and amount. How many units must be sold to earn profit before tax Rs. 32,500.

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orginal budget	actual result
volume 18 000 units	22 000 units
R	R
SALES 2 520 000	3 300 000
COST OF SALES (1 670 000)	2 132 000
DIRECT MATERILS 720 000	924 000
DIRECT LABOUR 450 000	594 000
VARIABLE OVERHEADS 180 000	264 000
FIXED OVERHEADS 320 000 GROSS PROFIT 850 000	350 000 1 168 000