Calculate flexible budget operating income.

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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 14, Problem 30E

1. a

To determine

Calculate flexible budget operating income.

1. b

To determine

Calculate flexible budget variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. c

To determine

Calculate flexible budget variance, in terms of operating income and state whether it is favorable or unfavorable.

1. d

To determine

Calculate sales volume variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. e

To determine

Calculate sales volume, in terms of operating income and state whether it is favorable or unfavorable.

2.

To determine

Explain the reason for which the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical.

3.

To determine

Explain the reason for which the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

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Transactions:Dec.3Wrote off Langston Corporation’s past-due account as uncollectible, $645.75. M203. 9Accepted a 90-day, 8% note from Farris Company for an extension of time on its account, $2,400.00. NR23. 18Received cash from Storage Solutions for the maturity value of NR19, a 90-day, 9% note for $2,000.00. R455. 21Coastal Supply dishonored NR21, a 90-day, 8% note, for $3,000.00. M245. 30Received cash in full payment of Langston Corporation’s account, previously written off as uncollectible, $645.75. M232 and R463. Task 1Journalize the transactions for Miller Corporation in Questions Assets that were completed during December of the current year. Use page 12 of the general journal and page 12 of the cash receipts journal.Task 2Post each entry to the general ledger and to the customer accounts in the accounts receivable ledger. You will not need to make entries to the Item columns of the ledgers.Task 3Continue to use page 12 of the general journal. Journalize the December 31…

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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 14, Problem 30E

1. a

To determine

Calculate flexible budget operating income.

1. b

To determine

Calculate flexible budget variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. c

To determine

Calculate flexible budget variance, in terms of operating income and state whether it is favorable or unfavorable.

1. d

To determine

Calculate sales volume variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. e

To determine

Calculate sales volume, in terms of operating income and state whether it is favorable or unfavorable.

2.

To determine

Explain the reason for which the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical.

3.

To determine

Explain the reason for which the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

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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 14, Problem 30E

1. a

To determine

Calculate flexible budget operating income.

1. b

To determine

Calculate flexible budget variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. c

To determine

Calculate flexible budget variance, in terms of operating income and state whether it is favorable or unfavorable.

1. d

To determine

Calculate sales volume variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. e

To determine

Calculate sales volume, in terms of operating income and state whether it is favorable or unfavorable.

2.

To determine

Explain the reason for which the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical.

3.

To determine

Explain the reason for which the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

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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 14, Problem 30E

1. a

To determine

Calculate flexible budget operating income.

1. b

To determine

Calculate flexible budget variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. c

To determine

Calculate flexible budget variance, in terms of operating income and state whether it is favorable or unfavorable.

1. d

To determine

Calculate sales volume variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. e

To determine

Calculate sales volume, in terms of operating income and state whether it is favorable or unfavorable.

2.

To determine

Explain the reason for which the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical.

3.

To determine

Explain the reason for which the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

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Answer 5

Chapter 14, Problem 30E

1. a

To determine

Calculate flexible budget operating income.

1. b

To determine

Calculate flexible budget variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. c

To determine

Calculate flexible budget variance, in terms of operating income and state whether it is favorable or unfavorable.

1. d

To determine

Calculate sales volume variance, in terms of contribution margin and state whether it is favorable or unfavorable.

1. e

To determine

Calculate sales volume, in terms of operating income and state whether it is favorable or unfavorable.

2.

To determine

Explain the reason for which the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical.

3.

To determine

Explain the reason for which the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

Answer 6

Chapter 14, Problem 30E

1. a

To determine

Calculate flexible budget operating income.

Answer 7

Chapter 14, Problem 30E

1. a

To determine

Calculate flexible budget operating income.

Answer 8

1. b

To determine

Calculate flexible budget variance, in terms of contribution margin and state whether it is favorable or unfavorable.

Answer 9

1. b

To determine

Calculate flexible budget variance, in terms of contribution margin and state whether it is favorable or unfavorable.

Answer 10

1. c

To determine

Calculate flexible budget variance, in terms of operating income and state whether it is favorable or unfavorable.

Answer 11

1. c

To determine

Calculate flexible budget variance, in terms of operating income and state whether it is favorable or unfavorable.

Answer 12

1. d

To determine

Calculate sales volume variance, in terms of contribution margin and state whether it is favorable or unfavorable.

Answer 13

1. d

To determine

Calculate sales volume variance, in terms of contribution margin and state whether it is favorable or unfavorable.

Answer 14

1. e

To determine

Calculate sales volume, in terms of operating income and state whether it is favorable or unfavorable.

Answer 15

1. e

To determine

Calculate sales volume, in terms of operating income and state whether it is favorable or unfavorable.

Answer 16

2.

To determine

Explain the reason for which the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical.

Answer 17

2.

To determine

Explain the reason for which the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical.

Answer 18

3.

To determine

Explain the reason for which the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

Answer 19

3.

To determine

Explain the reason for which the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

Answer 20

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Answer 21

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Answer 22

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Answer 23

Ch. 14 - Prob. 1Q Ch. 14 - Explain how standard costs and flexible budgets...Ch. 14 - Explain what is meant by the term management by...Ch. 14 - Prob. 4Q Ch. 14 - Prob. 5Q Ch. 14 - Prob. 6Q Ch. 14 - Prob. 7Q Ch. 14 - Prob. 8Q Ch. 14 - Prob. 9Q Ch. 14 - Prob. 10Q

Calculate flexible budget operating income.

Calculate flexible budget operating income.

Calculate flexible budget variance, in terms of contribution margin and state whether it is favorable or unfavorable.

Calculate flexible budget variance, in terms of operating income and state whether it is favorable or unfavorable.

Calculate sales volume variance, in terms of contribution margin and state whether it is favorable or unfavorable.

Calculate sales volume, in terms of operating income and state whether it is favorable or unfavorable.

Explain the reason for which the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical.

Explain the reason for which the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

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Chapter 14 Solutions