You are working as Executive Assistant to the Chairman in Bharat Gears, an automotive company in Chennai. The following data has been presented to you for interpretation to be given to the Chairman explaining to him the department's responsibility for deviation of performance. Prepare a Flexible budget and show who is responsible for deviation of performance. This is one month's data. Static Budget in Output Units Actual Output Units produced and sold. Budgeted Selling Price per unit of Output Budgeted Variable Costs per unit of Output Budgeted Fixed Costs Per Month Actual Revenue Actual Variable Costs Favorable Variance in Fixed Costs 25,000 23,000 Rs 40.00 Rs 25.00 Rs 2,00,000.00 Rs 8,74,000.00 Rs 6,30,000.00 Rs 5,000.00 Although output units sold exceeded expectations, operating income did not. Assume that there was no beginning or ending inventory. You thought to analyze the situation. Use F for Favourable and U for Unfavourable

You are working as Executive Assistant to the Chairman in Bharat Gears, an automotive company in Chennai. The following data has been presented to you for interpretation to be given to the Chairman explaining to him the department's responsibility for deviation of performance. Prepare a Flexible budget and show who is responsible for deviation of performance. This is one month's data. Static Budget in Output Units Actual Output Units produced and sold. Budgeted Selling Price per unit of Output Budgeted Variable Costs per unit of Output Budgeted Fixed Costs Per Month Actual Revenue Actual Variable Costs Favorable Variance in Fixed Costs 25,000 23,000 Rs 40.00 Rs 25.00 Rs 2,00,000.00 Rs 8,74,000.00 Rs 6,30,000.00 Rs 5,000.00 Although output units sold exceeded expectations, operating income did not. Assume that there was no beginning or ending inventory. You thought to analyze the situation. Use F for Favourable and U for Unfavourable

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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Preparing a flexible budget performance report Murphy Company managers received the following incomplete performance report: Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasoning.
e. Production, Sales, Income Statement Clear my choice Which of the following statements is false? Select one: Oa. The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit. Ob. The master budget consists of a number of separate but interdependent budgets. Oc.A continuous or perpetual budget is a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed. O d. The direct labor budget begins with the required production in units from the production budget. Oe. Control involves developing goals and preparing various budgets to achieve those goals. Next page Tables- Jump to.. e to seardh
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A flexible budget graph for the Assembly Department shows the following: 1. At zero direct labor hours, the total budgeted cost line intersects the vertical axis at $128,000. 2. At normal capacity of 50,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $376,000. Develop the budgeted cost calculation for the Assembly Department and identify the fixed and variable costs.
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dent is pleased with the following performance report: bor, and direct marketing (distribution) labor per attaché case are $43, $6, and $13, respectively. The presi- 7-22 Flexible budget. Bryant Company's budgeted prices for direct materials, direct manufacturing la- ASSIGNMENT M Flexible budget. Bryant Company's budgeted prices for direct materials, direct manufacturing la- Actual Costs Static Budget Variance Direct materials $438,000 $473,000 $35,000 F Direct manufacturing labor Direct marketing (distribution) labor 63,600 66,000 2,400 F 133,500 143,000 9,500 F Actual output was 10,000 attaché cases. Assume all three direct-cost items shown are variable costs. Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. ook
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Your answer is partially correct. Indigo Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.10 0.80 0.50 Budgeted fixed overhead costs per month are Supervision $4,800, Depreciation $1,440, and Property Taxes $960. The company believes it will normally operate in a range of 8,400-12,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.)
Doorstop Manufacturing uses flexible budgets to manage its operations. Budgeted manufacturing overhead is $48,000 for variable costs and $270,000 for fixed costs at normal capacity of 16,000 units. If Doorstop had actual overhead costs of $327,000 for 18,000 units produced, what is the difference between actual and budgeted costs? A. $3,000 unfavorable B. $9,000 unfavorable C. $3,000 favorable D. $12,000 favorable
What is the basic difference between a master budget and a flexible budget? Master budget is for five year period and flexible budget is for one year period. Master budget is on financial terms and flexible budget is on quantitative terms. Master budget is for specific capacity and flexible budget is for multiple capacity. Master budget is prepared on actuals and flexible budget is based on standards. Submit You have used 0 of 2 Save attempts
Your managerial accountant provided you with information comparing the actual results to the budgeted amounts for the period: Static Flexible Actual Quantity 3,200 DL hours 2,900 hours 2,900 hours Price $15 per hour $15 per hour $18 per hour Total Costs $48,000 $43,500 $52,200 Based on the information provided, select all of the true statements from the following options: Your managerial accountant provided you with information comparing the actual results to the budgeted amounts for the period: Static Flexible Actual Quantity 3,200 DL hours 2,900 hours 2,900 hours Price $15 per hour $15 per hour $18 per hour Total Costs $48,000 $43,500 $52,200 Based on the information provided, select all of the true statements from the following options: The price variance is $8,700, favorable The price variance is $8,700, unfavorable The total budget variance is $42,000, favorable The price variance is $3.00, favorable The…
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