Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

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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 23, Problem 30BP

1.

To determine

Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

2.

To determine

State the effect of operating income of company C for selling 2,000 units more than the static budget level of sales.

3.

To determine

State the amount of operating income under static budget variance.

4.

To determine

Describe the reason why the flexible budget performance report of company C provides more useful information than the simple static budget variance and explain the manager’s perceptions from this performance report.

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

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 23, Problem 30BP

1.

To determine

Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

2.

To determine

State the effect of operating income of company C for selling 2,000 units more than the static budget level of sales.

3.

To determine

State the amount of operating income under static budget variance.

4.

To determine

Describe the reason why the flexible budget performance report of company C provides more useful information than the simple static budget variance and explain the manager’s perceptions from this performance report.

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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 23, Problem 30BP

1.

To determine

Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

2.

To determine

State the effect of operating income of company C for selling 2,000 units more than the static budget level of sales.

3.

To determine

State the amount of operating income under static budget variance.

4.

To determine

Describe the reason why the flexible budget performance report of company C provides more useful information than the simple static budget variance and explain the manager’s perceptions from this performance report.

Expert Solution & Answer

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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 23, Problem 30BP

1.

To determine

Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

2.

To determine

State the effect of operating income of company C for selling 2,000 units more than the static budget level of sales.

3.

To determine

State the amount of operating income under static budget variance.

4.

To determine

Describe the reason why the flexible budget performance report of company C provides more useful information than the simple static budget variance and explain the manager’s perceptions from this performance report.

Expert Solution & Answer

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Answer 5

Chapter 23, Problem 30BP

1.

To determine

Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

2.

To determine

State the effect of operating income of company C for selling 2,000 units more than the static budget level of sales.

3.

To determine

State the amount of operating income under static budget variance.

4.

To determine

Describe the reason why the flexible budget performance report of company C provides more useful information than the simple static budget variance and explain the manager’s perceptions from this performance report.

Answer 6

Chapter 23, Problem 30BP

1.

To determine

Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

Answer 7

Chapter 23, Problem 30BP

1.

To determine

Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

Answer 8

2.

To determine

State the effect of operating income of company C for selling 2,000 units more than the static budget level of sales.

Answer 9

2.

To determine

State the effect of operating income of company C for selling 2,000 units more than the static budget level of sales.

Answer 10

3.

To determine

State the amount of operating income under static budget variance.

Answer 11

3.

To determine

State the amount of operating income under static budget variance.

Answer 12

4.

To determine

Describe the reason why the flexible budget performance report of company C provides more useful information than the simple static budget variance and explain the manager’s perceptions from this performance report.

Answer 13

4.

To determine

Describe the reason why the flexible budget performance report of company C provides more useful information than the simple static budget variance and explain the manager’s perceptions from this performance report.

Answer 14

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Answer 17

Ch. 23 - Garland Company expects to sell 600 wreaths in...Ch. 23 - Match the variance to the correct definition....Ch. 23 - Match the variance to the correct definition....Ch. 23 - Match the variance to the correct definition....Ch. 23 - Match the variance to the correct definition....Ch. 23 - Match the variance to the correct definition....Ch. 23 - Prob. 7TI Ch. 23 - Prob. 8TI Ch. 23 - Prob. 9TI Ch. 23 - Prob. 10TI

Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

Solution Summary: The author explains that a flexible budget adjusts according to the changes in the volume of the activity. The amount of operating income under static budget variance is 22,900.

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Prepare a flexible budget performance report of company C for the month ended July 31, 2018.

State the effect of operating income of company C for selling 2,000 units more than the static budget level of sales.

State the amount of operating income under static budget variance.

Describe the reason why the flexible budget performance report of company C provides more useful information than the simple static budget variance and explain the manager’s perceptions from this performance report.

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Chapter 23 Solutions