Zachary Company has provided the following for the year.BudgetSalesVariable product costsVariable selling expenseOther variable expensesFixed product costsFixed selling expenseOther fixed expensesInterest expenseVariancesSalesVariable product costsVariable selling expenseOther variable expensesFixed product costsFixed selling expenseOther fixed expensesInterest expenseSalesVariable expenses:Fixed expenses:$515,000192,00041,0003,40015,70023,6002,200630Requireda. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income inthe statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zerovariance).)$8,400 U4,300 F2,300 U1,200 U230 F440 F130 U150 FZACHARY COMPANYInternal Income StatementBudget00 $Actual00VarianceEffectFUNone

The income statement is a financial report that shows the profitability of the entity. The revenues…

Zachary Company has provided the following for the year. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Sales Variable expenses: Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Fixed expenses: $515,000 192,000 41,000 3,400 15,700 23,600 2,200 630 $ 8,400 U 4,300 F 2,300 U 1,200 U 230 F 440 F 130 U 150 F ZACHARY COMPANY Internal Income Statement Budget 0 0 0 $ Actual 0 0 0 Variance F U Effect None

Zachary Company has provided the following for the year. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Sales Variable expenses: Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Fixed expenses: $515,000 192,000 41,000 3,400 15,700 23,600 2,200 630 $ 8,400 U 4,300 F 2,300 U 1,200 U 230 F 440 F 130 U 150 F ZACHARY COMPANY Internal Income Statement Budget 0 0 0 $ Actual 0 0 0 Variance F U Effect None

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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Munoz Company has provided the following Year 2 data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Required $ 513,000 204,000 47,000 3,100 16,600 24,200 1,300 680 7,800 Unfavorable 4,800 Favorable 1,700 Unfavorable 1,500 Unfavorable 230 Favorable 390 Favorable 140 Unfavorable 110 Favorable Prepare a budgeted and actual Income statement for Internal use. MUNOZ COMPANY Internal Income Statement for Year 2 Sales Variable expenses: Product costs Selling expenses Other expenses Contribution margin Fixed expenses. Product costs Selling expenses Other expenses Operating income (loss) Interest expense Net income (loss) Budget Actual
Which method of closing out the fixed MOH volume variance will have no effect on the financial statements, no matter the capacity used? Question options: a) Prorating the fixed MOH volume variance to FG inventory and COGS. b) Allocating the fixed MOH volume variance equally among WIP Inventory, FG inventory and COGS. c) Prorating the fixed MOH volume variance to WIP Inventory, FG inventory and COGS. d) Allocating the fixed MOH volume variance to COGS.
Requirement 2. Prepare a flexible-budget-based variance analysis of the September performance. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Enter operating losses with a minus sign or parentheses.) Actual Results Units sold Revenues Variable costs Contribution margin Fixed costs Operating income (loss)
Analyze the variances from the flexible budget and identify issues that management should be concern about. You only need to highlight bariances that are a concern
The May 2024 revenue and cost information for Boise Outfitters, Inc. follows: 1(Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Boise Outfitters, Inc. Standard Cost Income Statement For the Month Ended May 31, 2024 (1) Sales Revenue $540,000 (2) Cost of Goods Sold at standard $344,000 (3) Manufacturing Cost Variances: (4) Direct Materials Cost Variance (5) Direct Materials Efficiency Variance (6) Direct Labor Cost Variance 4,800 (7) Direct Labor Efficiency Variance (8) Variable…
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Benson Company has provided the following Year 2 data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense BENSON COMPANY Internal Income Statement for Year 2 Budget Required Prepare a budgeted and actual Income statement for Internal use. Sales Variable expenses: Product costs $504,000 186,000 46,000 3,300 16,500 23,400 1,900 700 Selling expenses Other expenses Contribution margin Fixed expenses: Product costs Selling expenses Other expenses Operating income (loss) Interest expense Net income (loss) 8,600 Unfavorable 4,200 Favorable 2,300 Unfavorable 1,700 Unfavorable 310 Favorable 490 Favorable 190 Unfavorable 90 Favorable Actual
Which of the following statements is true? A) The spending variance for a variable expense will usually equal zero. B) The spending variance for a variable expense will be favorable if the amount of the expense contained in the flexible budget is greater than the actual amount of the expense. C) The spending variance for a variable expense will be favorable if the amount of the expense contained in the flexible budget is less than the actual amount of the expense. D) The spending variance for a variable expense can be favorable or unfavorable depending on whether the actual expense is greater than or less than the planned expense.
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