Budget performance reports for cost centers Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below. a.Complete the budget performance reports by determining the correct amounts for the lettered spaces. b.Compose a memo to Jeff Kitchens, president of Meridian Company, explaining the performance of the Production Division for June.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 14, Problem 14.1E

Budget performance reports for cost centers

Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below.

Chapter 14, Problem 14.1E, Budget performance reports for cost centers Partially completed budget performance reports for , example 1

Chapter 14, Problem 14.1E, Budget performance reports for cost centers Partially completed budget performance reports for , example 2
a.Complete the budget performance reports by determining the correct amounts for the lettered spaces.
b.Compose a memo to Jeff Kitchens, president of Meridian Company, explaining the performance of the Production Division for June.

Expert Solution

To determine

(a)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To find out:

A missing amount in budget statement of Company R for the month ended April 30.

Answer to Problem 14.1E

Budget for condenser assembly: $275,000
Actual for condenser assembly: $297,950
Balance of over-budget (b-a): $22,950
Total budget of oxford plant: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $26,150
Total balance of budget of oxford: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $17,750
Total balance of budget of company: $6,800,000
Total balance of actual expenditure of company: $6,794,050
Total over budget for Company: $17,750

Explanation of Solution

Firstly, we will be taking the figure of Supervisor, condenser assembly's budget performance report for filling the missing amount in the Oxford plant. And after that, using the figure of the Oxford plant in the overall budget statement for complete the statement.

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Department	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Condenser Assembly	275,000	297,950	22,950	-
Electronic Assembly	700,000	703,200	3,200	-
Final Assembly	525,000	516,600	-	(8,400)
TOTAL	1,500,000	1,517,750	26,150	(8,400)

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Plant	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Daytona	2,300,000	2,287,900	-	(12,100)
Little Rock	3,000,000	2,988,400	-	(11,600)
Oxford	1,500,000	1,517,750	17,750	-
TOTAL	6,800,000	6,794,050	17,750	(23,700)

Expert Solution

To determine

(b)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To prepare:

A memo to Jeff Kitchens, President of Meridian Company for performance of the production division for June.

Answer to Problem 14.1E

The memo has been prepared for the performance of the production division to the resident of production house.

Explanation of Solution

To Mr. Jeff, president of production house

The actual cost of plant Oxford is higher from the budget amount, while it is lesser in other plants namely Daytona and Little Rock.

For such difference, reason can be analyzed from the budget statement of Oxford in which it is figured out that such is to be due to higher factory wages, higher maintenance charges, etc. in the Condenser assembly department. So, there is a need for some alertness.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What distinguishes value network accounting from linear reporting? i) Networks add confusion ii) Simple chains work better iii) Interconnected relationships require multi-dimensional tracking iv) Linear methods tell all. What Is Right Answer.

What distinguishes value network accounting from linear reporting? i) Networks add confusion ii) Simple chains work better iii) Interconnected relationships require multi-dimensional tracking iv) Linear methods tell all

Adidas, Evans and Merrelle are partners who share profit and loss in the ratio 30%, 25%, 25% and 20%. Capital balances before division of Net loss of P30,000 and withdrawals of P10,000 each, were as follows: 120,000.00 - Adidas 150,000.00 - Evans 130,000.00 - Merrelle 100,000.00- Converse 1. Converse is to retire from the partnership and will be paid P84,000 2. Converse is to retire and will be paid P100,000. Use the Bonus method 3. Converse is to retire and will be paid P70,000. Use the Revaluation of asset method 4. Converse is to retire and will be purchased by Merrelle paying P90,000 5. Converse is to retire from the partnership and will have an increase share of P10,000 in the revaluation of asset 6 Converse is to retire from the partnership and will be paid P90,000 Which method would Evans would prefer assuming the partners divide the P/L equally after the retirement of Converse?

Answer 2

Textbook Question

Chapter 14, Problem 14.1E

Budget performance reports for cost centers

Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below.

Chapter 14, Problem 14.1E, Budget performance reports for cost centers Partially completed budget performance reports for , example 1

Chapter 14, Problem 14.1E, Budget performance reports for cost centers Partially completed budget performance reports for , example 2
a.Complete the budget performance reports by determining the correct amounts for the lettered spaces.
b.Compose a memo to Jeff Kitchens, president of Meridian Company, explaining the performance of the Production Division for June.

Expert Solution

To determine

(a)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To find out:

A missing amount in budget statement of Company R for the month ended April 30.

Answer to Problem 14.1E

Budget for condenser assembly: $275,000
Actual for condenser assembly: $297,950
Balance of over-budget (b-a): $22,950
Total budget of oxford plant: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $26,150
Total balance of budget of oxford: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $17,750
Total balance of budget of company: $6,800,000
Total balance of actual expenditure of company: $6,794,050
Total over budget for Company: $17,750

Explanation of Solution

Firstly, we will be taking the figure of Supervisor, condenser assembly's budget performance report for filling the missing amount in the Oxford plant. And after that, using the figure of the Oxford plant in the overall budget statement for complete the statement.

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Department	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Condenser Assembly	275,000	297,950	22,950	-
Electronic Assembly	700,000	703,200	3,200	-
Final Assembly	525,000	516,600	-	(8,400)
TOTAL	1,500,000	1,517,750	26,150	(8,400)

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Plant	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Daytona	2,300,000	2,287,900	-	(12,100)
Little Rock	3,000,000	2,988,400	-	(11,600)
Oxford	1,500,000	1,517,750	17,750	-
TOTAL	6,800,000	6,794,050	17,750	(23,700)

Expert Solution

To determine

(b)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To prepare:

A memo to Jeff Kitchens, President of Meridian Company for performance of the production division for June.

Answer to Problem 14.1E

The memo has been prepared for the performance of the production division to the resident of production house.

Explanation of Solution

To Mr. Jeff, president of production house

The actual cost of plant Oxford is higher from the budget amount, while it is lesser in other plants namely Daytona and Little Rock.

For such difference, reason can be analyzed from the budget statement of Oxford in which it is figured out that such is to be due to higher factory wages, higher maintenance charges, etc. in the Condenser assembly department. So, there is a need for some alertness.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 14, Problem 14.1E

Budget performance reports for cost centers

Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below.

Chapter 14, Problem 14.1E, Budget performance reports for cost centers Partially completed budget performance reports for , example 1

Chapter 14, Problem 14.1E, Budget performance reports for cost centers Partially completed budget performance reports for , example 2
a.Complete the budget performance reports by determining the correct amounts for the lettered spaces.
b.Compose a memo to Jeff Kitchens, president of Meridian Company, explaining the performance of the Production Division for June.

Expert Solution

To determine

(a)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To find out:

A missing amount in budget statement of Company R for the month ended April 30.

Answer to Problem 14.1E

Budget for condenser assembly: $275,000
Actual for condenser assembly: $297,950
Balance of over-budget (b-a): $22,950
Total budget of oxford plant: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $26,150
Total balance of budget of oxford: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $17,750
Total balance of budget of company: $6,800,000
Total balance of actual expenditure of company: $6,794,050
Total over budget for Company: $17,750

Explanation of Solution

Firstly, we will be taking the figure of Supervisor, condenser assembly's budget performance report for filling the missing amount in the Oxford plant. And after that, using the figure of the Oxford plant in the overall budget statement for complete the statement.

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Department	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Condenser Assembly	275,000	297,950	22,950	-
Electronic Assembly	700,000	703,200	3,200	-
Final Assembly	525,000	516,600	-	(8,400)
TOTAL	1,500,000	1,517,750	26,150	(8,400)

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Plant	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Daytona	2,300,000	2,287,900	-	(12,100)
Little Rock	3,000,000	2,988,400	-	(11,600)
Oxford	1,500,000	1,517,750	17,750	-
TOTAL	6,800,000	6,794,050	17,750	(23,700)

Expert Solution

To determine

(b)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To prepare:

A memo to Jeff Kitchens, President of Meridian Company for performance of the production division for June.

Answer to Problem 14.1E

The memo has been prepared for the performance of the production division to the resident of production house.

Explanation of Solution

To Mr. Jeff, president of production house

The actual cost of plant Oxford is higher from the budget amount, while it is lesser in other plants namely Daytona and Little Rock.

For such difference, reason can be analyzed from the budget statement of Oxford in which it is figured out that such is to be due to higher factory wages, higher maintenance charges, etc. in the Condenser assembly department. So, there is a need for some alertness.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 14, Problem 14.1E

Budget performance reports for cost centers

Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below.

Chapter 14, Problem 14.1E, Budget performance reports for cost centers Partially completed budget performance reports for , example 1

Chapter 14, Problem 14.1E, Budget performance reports for cost centers Partially completed budget performance reports for , example 2
a.Complete the budget performance reports by determining the correct amounts for the lettered spaces.
b.Compose a memo to Jeff Kitchens, president of Meridian Company, explaining the performance of the Production Division for June.

Expert Solution

To determine

(a)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To find out:

A missing amount in budget statement of Company R for the month ended April 30.

Answer to Problem 14.1E

Budget for condenser assembly: $275,000
Actual for condenser assembly: $297,950
Balance of over-budget (b-a): $22,950
Total budget of oxford plant: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $26,150
Total balance of budget of oxford: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $17,750
Total balance of budget of company: $6,800,000
Total balance of actual expenditure of company: $6,794,050
Total over budget for Company: $17,750

Explanation of Solution

Firstly, we will be taking the figure of Supervisor, condenser assembly's budget performance report for filling the missing amount in the Oxford plant. And after that, using the figure of the Oxford plant in the overall budget statement for complete the statement.

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Department	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Condenser Assembly	275,000	297,950	22,950	-
Electronic Assembly	700,000	703,200	3,200	-
Final Assembly	525,000	516,600	-	(8,400)
TOTAL	1,500,000	1,517,750	26,150	(8,400)

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Plant	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Daytona	2,300,000	2,287,900	-	(12,100)
Little Rock	3,000,000	2,988,400	-	(11,600)
Oxford	1,500,000	1,517,750	17,750	-
TOTAL	6,800,000	6,794,050	17,750	(23,700)

Expert Solution

To determine

(b)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To prepare:

A memo to Jeff Kitchens, President of Meridian Company for performance of the production division for June.

Answer to Problem 14.1E

The memo has been prepared for the performance of the production division to the resident of production house.

Explanation of Solution

To Mr. Jeff, president of production house

The actual cost of plant Oxford is higher from the budget amount, while it is lesser in other plants namely Daytona and Little Rock.

For such difference, reason can be analyzed from the budget statement of Oxford in which it is figured out that such is to be due to higher factory wages, higher maintenance charges, etc. in the Condenser assembly department. So, there is a need for some alertness.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution

To determine

(a)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To find out:

A missing amount in budget statement of Company R for the month ended April 30.

Answer to Problem 14.1E

Budget for condenser assembly: $275,000
Actual for condenser assembly: $297,950
Balance of over-budget (b-a): $22,950
Total budget of oxford plant: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $26,150
Total balance of budget of oxford: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $17,750
Total balance of budget of company: $6,800,000
Total balance of actual expenditure of company: $6,794,050
Total over budget for Company: $17,750

Explanation of Solution

Firstly, we will be taking the figure of Supervisor, condenser assembly's budget performance report for filling the missing amount in the Oxford plant. And after that, using the figure of the Oxford plant in the overall budget statement for complete the statement.

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Department	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Condenser Assembly	275,000	297,950	22,950	-
Electronic Assembly	700,000	703,200	3,200	-
Final Assembly	525,000	516,600	-	(8,400)
TOTAL	1,500,000	1,517,750	26,150	(8,400)

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Plant	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Daytona	2,300,000	2,287,900	-	(12,100)
Little Rock	3,000,000	2,988,400	-	(11,600)
Oxford	1,500,000	1,517,750	17,750	-
TOTAL	6,800,000	6,794,050	17,750	(23,700)

Expert Solution

To determine

(b)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To prepare:

A memo to Jeff Kitchens, President of Meridian Company for performance of the production division for June.

Answer to Problem 14.1E

The memo has been prepared for the performance of the production division to the resident of production house.

Explanation of Solution

To Mr. Jeff, president of production house

The actual cost of plant Oxford is higher from the budget amount, while it is lesser in other plants namely Daytona and Little Rock.

For such difference, reason can be analyzed from the budget statement of Oxford in which it is figured out that such is to be due to higher factory wages, higher maintenance charges, etc. in the Condenser assembly department. So, there is a need for some alertness.

Answer 8

Expert Solution

To determine

(a)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To find out:

A missing amount in budget statement of Company R for the month ended April 30.

Answer to Problem 14.1E

Budget for condenser assembly: $275,000
Actual for condenser assembly: $297,950
Balance of over-budget (b-a): $22,950
Total budget of oxford plant: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $26,150
Total balance of budget of oxford: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $17,750
Total balance of budget of company: $6,800,000
Total balance of actual expenditure of company: $6,794,050
Total over budget for Company: $17,750

Explanation of Solution

Firstly, we will be taking the figure of Supervisor, condenser assembly's budget performance report for filling the missing amount in the Oxford plant. And after that, using the figure of the Oxford plant in the overall budget statement for complete the statement.

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Department	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Condenser Assembly	275,000	297,950	22,950	-
Electronic Assembly	700,000	703,200	3,200	-
Final Assembly	525,000	516,600	-	(8,400)
TOTAL	1,500,000	1,517,750	26,150	(8,400)

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Plant	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Daytona	2,300,000	2,287,900	-	(12,100)
Little Rock	3,000,000	2,988,400	-	(11,600)
Oxford	1,500,000	1,517,750	17,750	-
TOTAL	6,800,000	6,794,050	17,750	(23,700)

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

(a)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To find out:

A missing amount in budget statement of Company R for the month ended April 30.

Answer 13

Answer to Problem 14.1E

Budget for condenser assembly: $275,000
Actual for condenser assembly: $297,950
Balance of over-budget (b-a): $22,950
Total budget of oxford plant: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $26,150
Total balance of budget of oxford: $1,500,000
Total actual balance of oxford plant: $1,517,750
Total over budget for oxford plant: $17,750
Total balance of budget of company: $6,800,000
Total balance of actual expenditure of company: $6,794,050
Total over budget for Company: $17,750

Answer 14

Explanation of Solution

Firstly, we will be taking the figure of Supervisor, condenser assembly's budget performance report for filling the missing amount in the Oxford plant. And after that, using the figure of the Oxford plant in the overall budget statement for complete the statement.

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Department	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Condenser Assembly	275,000	297,950	22,950	-
Electronic Assembly	700,000	703,200	3,200	-
Final Assembly	525,000	516,600	-	(8,400)
TOTAL	1,500,000	1,517,750	26,150	(8,400)

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Plant	Budget ($)	Actual ($)	Over Budget ($)	Under-Budget ($)
Daytona	2,300,000	2,287,900	-	(12,100)
Little Rock	3,000,000	2,988,400	-	(11,600)
Oxford	1,500,000	1,517,750	17,750	-
TOTAL	6,800,000	6,794,050	17,750	(23,700)

Answer 15

Expert Solution

To determine

(b)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To prepare:

A memo to Jeff Kitchens, President of Meridian Company for performance of the production division for June.

Answer to Problem 14.1E

The memo has been prepared for the performance of the production division to the resident of production house.

Explanation of Solution

To Mr. Jeff, president of production house

The actual cost of plant Oxford is higher from the budget amount, while it is lesser in other plants namely Daytona and Little Rock.

For such difference, reason can be analyzed from the budget statement of Oxford in which it is figured out that such is to be due to higher factory wages, higher maintenance charges, etc. in the Condenser assembly department. So, there is a need for some alertness.

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

To determine

(b)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To prepare:

A memo to Jeff Kitchens, President of Meridian Company for performance of the production division for June.

Answer 20

Answer to Problem 14.1E

The memo has been prepared for the performance of the production division to the resident of production house.

Answer 21

Explanation of Solution

To Mr. Jeff, president of production house

The actual cost of plant Oxford is higher from the budget amount, while it is lesser in other plants namely Daytona and Little Rock.

For such difference, reason can be analyzed from the budget statement of Oxford in which it is figured out that such is to be due to higher factory wages, higher maintenance charges, etc. in the Condenser assembly department. So, there is a need for some alertness.

Answer 22

Ch. 14 - When the manager has the responsibility and...Ch. 14 - The Accounts Payable Department has expenses of...Ch. 14 - Division A of Kern Co. has sales of $350,000, cost...Ch. 14 - Division L of Liddy Co. has a return on investment...Ch. 14 - Which approach to transfer pricing uses the price...Ch. 14 - Prob. 1CDQ Ch. 14 - Prob. 2CDQ Ch. 14 - Prob. 3CDQ Ch. 14 - Prob. 4CDQ Ch. 14 - Weyerhaeuser developed a system that assigns...

Concept explainers

Videos

Answer to Problem 14.1E

Explanation of Solution

Answer to Problem 14.1E

Explanation of Solution

Want to see more full solutions like this?

Chapter 14 Solutions