Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 10, Problem 1PB
(1)
To determine
Prepare Budget performance report for the manager of E District, for the month of December
(2)
To determine
Indicate the costs which the supervisor requires supplemental reports
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Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual
operating results for the month of November:
Bickel Corporation -
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
Customers served
Revenue ($3.504)
Expenses:
Mages and salaries ($24,200 $1.324)
Supplies ($0.729)
Insurance ($6,100)
Miscellaneous expense (55,100 50.410)
Total expense
Net operating income
Actual
Results
43,000
$150,300
80,960
28,840
6,100
20,920
136,820
$ 11,400
Planning Budget
42,000
$147,000
79,640
30,240
6,100
22,320
138,300
$1,700
Variances
$3,300 F
1,320 U
1,400 F
0 None
1,400 F
1,480 F
$4,780 F
Required:
Prepare the company's Comprehensive Performance Report for November. Label each variance as favorable (F) or unfavorable (U).
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance), Input all amounts as positive values.)
Panther Corporation appeared to be experiencing a good year. Sales in the first quarter were one-third ahead of last year, and the
sales department predicted that this rate would continue throughout the entire year. The controller asked Janet Nomura, a summer
accounting intern, to prepare a draft forecast for the year and to analyze the differences from last year's results. She based the
forecast on actual results obtained in the first quarter plus the expected costs of production to be completed in the remainder of the
year. She worked with various department heads (production, sales, and so on) to get the necessary information. The results of these
efforts follow:
PANTHER CORPORATION
Expected Account Balances for December 31, Year 2
Cash
6,500
Accounts receivable
337,000
Inventory (January 1, Year 2)
Plant and equipment
Accumulated depreciation
Accounts payable
Notes payable (due within one year)
Accrued payables
240,000
605,000
$
181,000
197,000
217,000
110,000
Common stock
450,000…
Bickel Corporation uses customers served as its measure of activity. The following report compares
the planning budget to the actual operating results for the month of November:
Customers served
Revenue ($3.60g)
Expenses:
Wages and salaries ($25,600+ $1.20g)
Supplies ($0.50g)
Insurance ($ 7,400)
Miscellaneous expense ($6,200 + $0.40g)
Total expense
Net operating income.
Customers served
Revenue
Expenses:
Bickel Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Required:
Prepare the company's flexible budget performance report for November. Label each variance as
favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable,
"U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive
values.)
Bickel Corporation
Flexible Budget Performance Report
For the Month Ended November 30
Actual
Results…
Chapter 10 Solutions
Managerial Accounting
Ch. 10 - Differentiate between centralized and...Ch. 10 - Differentiate between a profit center and an...Ch. 10 - Prob. 3DQCh. 10 - What is the major shortcoming of using operating...Ch. 10 - In a decentralized company in which the divisions...Ch. 10 - How does using the return on investment facilitate...Ch. 10 - (a) Explain how return on investment might lead a...Ch. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - When using the negotiated price approach to...
Ch. 10 - Budgetary performance for cost center Vinton...Ch. 10 - Support department allocations The centralized...Ch. 10 - Prob. 3BECh. 10 - Profit margin, investment turnover, and ROI Briggs...Ch. 10 - Residual income The Commercial Division of Galena...Ch. 10 - Prob. 6BECh. 10 - Budget performance reports for cost centers...Ch. 10 - The following data were summarized from the...Ch. 10 - For each of the following support departments,...Ch. 10 - Prob. 4ECh. 10 - Service department charges In divisional income...Ch. 10 - Varney Corporation, a manufacturer of electronics...Ch. 10 - Horton Technology has two divisions, Consumer and...Ch. 10 - Rocky Mountain Airlines Inc. has two divisions...Ch. 10 - Championship Sports Inc. operates two divisionsthe...Ch. 10 - Prob. 10ECh. 10 - The operating income and the amount of invested...Ch. 10 - Prob. 12ECh. 10 - The condensed income statement for the Consumer...Ch. 10 - The Walt Disney Company (DIS) has four business...Ch. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Materials used by the Instrument Division of...Ch. 10 - Prob. 18ECh. 10 - GHT Tech Inc. sells electronics over the Internet....Ch. 10 - Profit center responsibility reporting for a...Ch. 10 - Prob. 3PACh. 10 - Effect of proposals on divisional performance A...Ch. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Prob. 6PACh. 10 - Prob. 1PBCh. 10 - Prob. 2PBCh. 10 - Prob. 3PBCh. 10 - Prob. 4PBCh. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Prob. 6PBCh. 10 - Prob. 1MADCh. 10 - Prob. 2MADCh. 10 - Papa Johns International, Inc. (PZZA), operates...Ch. 10 - Panera Bread Company (PNRA) operates over 2,000...Ch. 10 - Prob. 5MADCh. 10 - Prob. 1TIFCh. 10 - Prob. 2TIFCh. 10 - Prob. 3TIFCh. 10 - The three divisions of Yummy Foods are Snack...Ch. 10 - Prob. 5TIFCh. 10 - Prob. 1CMACh. 10 - Prob. 2CMACh. 10 - Prob. 3CMACh. 10 - Morrisons Plastics Division, a profit center,...
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