Using Flexible BudgetsThe following summary data are from a performance report for Hyland Company for May, during which 9,600 units were produced. The budget reflects the company's normal capacity of 10,000 units.Actual Cost Budget9,60010,000unitsunitsType$102,600 $105,000 $(2,400) Favorable207,900 210,000 (2,100) Favorable73,800 72,000 1,800 Unfavorable54,300 54,000 300 Unfavorable$438,600 $441,000 $(2,400) FavorableDirect materialDirect laborVariable overheadFixed overheadTotala. Prepare a new performance report using flexible budgeting. Round all amounts to the nearest dollar.VarianceDirect material $Direct laborVariable overheadFixed overheadTotals$ActualCostsVariances0 $0000 $FlexibleBudget0 $0000 $00000Typeb. Which of the two performance reports should Hyland Company management use to measurethe company's operating efficiency in May?4◄►

Budgets means estimates or forecasts made for future period. Flexible budget shows updated budget…

Using Flexible Budgets The following summary data are from a performance report for Hyland Company for May, during which 9,600 units were produced. The budget reflects the company's normal capacity of 10,000 unit Direct material Direct labor Variable overhead Fixed overhead Total a. Prepare Actual Cost Budget 9,600 10,000 units units $ Type $102,600 $105,000 $(2,400) Favorable 207,900 210,000 (2,100) Favorable 73,800 72,000 1,800 Unfavorable 54,300 54,000 300 Unfavorable $438,600 $441,000 $(2,400) Favorable new performance report using flexible budgeting. Round all amounts to the nearest dollar. Variance Direct material $ Direct labor Variable overhead Fixed overhead Totals $ Actual Costs Variances 0 $ 0 0 0 0 $ Flexible Budget 0 $ 0 0 0 0 $ $ 0 0 0 0 0 Type b. Which of the two performance reports should Hyland Company management use to measure the company's operating efficiency in May? + ◆ ◆ 수

Using Flexible Budgets The following summary data are from a performance report for Hyland Company for May, during which 9,600 units were produced. The budget reflects the company's normal capacity of 10,000 unit Direct material Direct labor Variable overhead Fixed overhead Total a. Prepare Actual Cost Budget 9,600 10,000 units units $ Type $102,600 $105,000 $(2,400) Favorable 207,900 210,000 (2,100) Favorable 73,800 72,000 1,800 Unfavorable 54,300 54,000 300 Unfavorable $438,600 $441,000 $(2,400) Favorable new performance report using flexible budgeting. Round all amounts to the nearest dollar. Variance Direct material $ Direct labor Variable overhead Fixed overhead Totals $ Actual Costs Variances 0 $ 0 0 0 0 $ Flexible Budget 0 $ 0 0 0 0 $ $ 0 0 0 0 0 Type b. Which of the two performance reports should Hyland Company management use to measure the company's operating efficiency in May? + ◆ ◆ 수

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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View Policies Current Attempt in Progress Avalon, Inc's static budget shows $40,500 budgeted for direct materials, $54,000 budgeted for direct labor, and $13,500 budgeted for overhead. Avalon's actual direct materials were $42,000, actual direct labor was $51,000, and actual overhead was $13,800. What is the total difference between the static budget and actual, and is the difference favorable or unfavorable? O $4,800, unfavorable O $1,200, favorable O $1,200, unfavorable O $4,800, favorable Save for Later Attempts: 0 of 1 used Submit Answer
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