Budgeted sales price per unit.

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Answer 1

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 10, Problem 10.38BE

1.

To determine

To calculate: Budgeted sales price per unit.

2.

To determine

To calculate: Budgeted variable cost per unit.

3.

To determine

To identify: What is budgeted fixed cost for the period.

4.

To determine

To calculate: Master budget variances and indicate whether each variance is favorable or unfavorable.

5.

To determine

To prepare: A flexible budget performance report to show the master budget variance which is due to the volume being different and which is due to some other unexpected cause.

6.

To determine

To identify: The answers to given questions:

a. The master budget variance for operating income is due to the volume being higher than expected.

b. The master budget variance for variable expenses is due to some cause other than volume.

c. The account for the flexible budget variance for sales revenue.

d. The volume variance for fixed expenses and why is it this amount.

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Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor unges Description 920 hours $27 per hour 190 hours for Job 101 340 hours for Job 102 Factory supervision Production engineer Factory Janitorial work Selling, general, and administrative salaries Total payroll costs Required: 390 hours for Job 103 Total Cost $ 5,130 9,180 10,530 $ 24,840 4,350 7,100 1,200 8,800 $ 46,298 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet A B Record Fairfield Company's payroll costs to be paid at a later date. Note Enter debits before credits. S.No Date 1 Account Title Debit Credit

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?

Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 10, Problem 10.38BE

1.

To determine

To calculate: Budgeted sales price per unit.

2.

To determine

To calculate: Budgeted variable cost per unit.

3.

To determine

To identify: What is budgeted fixed cost for the period.

4.

To determine

To calculate: Master budget variances and indicate whether each variance is favorable or unfavorable.

5.

To determine

To prepare: A flexible budget performance report to show the master budget variance which is due to the volume being different and which is due to some other unexpected cause.

6.

To determine

To identify: The answers to given questions:

a. The master budget variance for operating income is due to the volume being higher than expected.

b. The master budget variance for variable expenses is due to some cause other than volume.

c. The account for the flexible budget variance for sales revenue.

d. The volume variance for fixed expenses and why is it this amount.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 10, Problem 10.38BE

1.

To determine

To calculate: Budgeted sales price per unit.

2.

To determine

To calculate: Budgeted variable cost per unit.

3.

To determine

To identify: What is budgeted fixed cost for the period.

4.

To determine

To calculate: Master budget variances and indicate whether each variance is favorable or unfavorable.

5.

To determine

To prepare: A flexible budget performance report to show the master budget variance which is due to the volume being different and which is due to some other unexpected cause.

6.

To determine

To identify: The answers to given questions:

a. The master budget variance for operating income is due to the volume being higher than expected.

b. The master budget variance for variable expenses is due to some cause other than volume.

c. The account for the flexible budget variance for sales revenue.

d. The volume variance for fixed expenses and why is it this amount.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 10, Problem 10.38BE

1.

To determine

To calculate: Budgeted sales price per unit.

2.

To determine

To calculate: Budgeted variable cost per unit.

3.

To determine

To identify: What is budgeted fixed cost for the period.

4.

To determine

To calculate: Master budget variances and indicate whether each variance is favorable or unfavorable.

5.

To determine

To prepare: A flexible budget performance report to show the master budget variance which is due to the volume being different and which is due to some other unexpected cause.

6.

To determine

To identify: The answers to given questions:

a. The master budget variance for operating income is due to the volume being higher than expected.

b. The master budget variance for variable expenses is due to some cause other than volume.

c. The account for the flexible budget variance for sales revenue.

d. The volume variance for fixed expenses and why is it this amount.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 10, Problem 10.38BE

1.

To determine

To calculate: Budgeted sales price per unit.

2.

To determine

To calculate: Budgeted variable cost per unit.

3.

To determine

To identify: What is budgeted fixed cost for the period.

4.

To determine

To calculate: Master budget variances and indicate whether each variance is favorable or unfavorable.

5.

To determine

To prepare: A flexible budget performance report to show the master budget variance which is due to the volume being different and which is due to some other unexpected cause.

6.

To determine

To identify: The answers to given questions:

a. The master budget variance for operating income is due to the volume being higher than expected.

b. The master budget variance for variable expenses is due to some cause other than volume.

c. The account for the flexible budget variance for sales revenue.

d. The volume variance for fixed expenses and why is it this amount.

Answer 6

Chapter 10, Problem 10.38BE

1.

To determine

To calculate: Budgeted sales price per unit.

Answer 7

Chapter 10, Problem 10.38BE

1.

To determine

To calculate: Budgeted sales price per unit.

Answer 8

2.

To determine

To calculate: Budgeted variable cost per unit.

Answer 9

2.

To determine

To calculate: Budgeted variable cost per unit.

Answer 10

3.

To determine

To identify: What is budgeted fixed cost for the period.

Answer 11

3.

To determine

To identify: What is budgeted fixed cost for the period.

Answer 12

4.

To determine

To calculate: Master budget variances and indicate whether each variance is favorable or unfavorable.

Answer 13

4.

To determine

To calculate: Master budget variances and indicate whether each variance is favorable or unfavorable.

Answer 14

5.

To determine

To prepare: A flexible budget performance report to show the master budget variance which is due to the volume being different and which is due to some other unexpected cause.

Answer 15

5.

To determine

To prepare: A flexible budget performance report to show the master budget variance which is due to the volume being different and which is due to some other unexpected cause.

Answer 16

6.

To determine

To identify: The answers to given questions:

a. The master budget variance for operating income is due to the volume being higher than expected.

b. The master budget variance for variable expenses is due to some cause other than volume.

c. The account for the flexible budget variance for sales revenue.

d. The volume variance for fixed expenses and why is it this amount.

Answer 17

6.

To determine

To identify: The answers to given questions:

a. The master budget variance for operating income is due to the volume being higher than expected.

b. The master budget variance for variable expenses is due to some cause other than volume.

c. The account for the flexible budget variance for sales revenue.

d. The volume variance for fixed expenses and why is it this amount.

Answer 18

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Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 10 - (Learning Objective 1) Companies often...Ch. 10 - (Learning Objective 1) Which of the following is...Ch. 10 - (Learning Objective 1) In terms of responsibility...Ch. 10 - (Learning Objective 2) Which of the following is...Ch. 10 - (Learning Objective 2) A segment margin is the...Ch. 10 - Prob. 6QC Ch. 10 - Prob. 7QC Ch. 10 - Prob. 8QC Ch. 10 - Prob. 9QC Ch. 10 - Prob. 10QC

Budgeted sales price per unit.

Solution Summary: The author explains how the master budget is based on the assumptions about the future expenses and revenues, and determines whether each variance is favorable or unfavorable.

Concept explainers

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To calculate: Budgeted sales price per unit.

To calculate: Budgeted variable cost per unit.

To identify: What is budgeted fixed cost for the period.

To calculate: Master budget variances and indicate whether each variance is favorable or unfavorable.

To prepare: A flexible budget performance report to show the master budget variance which is due to the volume being different and which is due to some other unexpected cause.

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Chapter 10 Solutions