Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 23, Problem 35P
Download an Excel template for this problem online in MyAccountingLab or at http://www.pearsonhighered.com/Horngren. Pilchuck Company manufactures tote bags and has provided the following information for September 2018:
Requirements
- 1. Prepare a flexible budget performance report, including the heading. Use the ABS function when calculating variances, and use the drop-down selections for F or U when describing the variances.
- 2. Calculate the Static
Budget Variance for operating income, and label it as a F (favorable) or U (unfavorable) variance.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Analyze the variances from the flexible budget and identify issues that management should be concern about. You only need to highlight bariances that are a concern
Click Draperies makes and sells curtains. Information related to its performance in 2020 is given below:
(Click the icon to view the data.)
Calculate Click Draperies' static-budget variance for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income.
Begin by determining all of the actual amounts, then the static budget amounts, and finally the static-budget variances. Label each variance as
favorable (F) or unfavorable (U).
Units sold
Revenues
Variable costs
Contribution margin
Fixed costs
Operating income
Actual
Results
Data table
Units made and sold
Selling price
Variable costs
Fixed costs
Print
Actual
1,300
$205 per curtain
165,000
77,000 $
Done
Budgeted
1,400
$215 per curtain
$115 per curtain
76,000
X
PLEASE ANSWER THE FOLLOWING QUESTIONS:
Requirements
1. Compute the total sales-volume variance, the total sales-mix variance, and
the total sales-quantity variance. (Calculate all variances in terms of
contribution margin.) Show results for each product in your computations.
2. What inferences can you draw from the variances computed in
requirement 1?
Data table
Budget for 2020
Selling Variable Cost Cartons
Product Price per Carton Sold
Kostor $11.00 $
Limba $ 23.00 $
6.40
16.15
Actual for 2020
Selling Variable Cost Cartons
Price per Carton Sold
7.40 138,600
16.35 59,400
132,000 $11.60 S
88,000 $ 24.40 $
Chapter 23 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
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. 7TICh. 23 - Prob. 8TICh. 23 - Prob. 9TICh. 23 - Prob. 10TI
Ch. 23 - Prob. 11TICh. 23 - Tipton Company manufactures shirts, During June,...Ch. 23 - Prob. 13TICh. 23 - Prob. 14TICh. 23 - Prob. 15TICh. 23 - This Try It! continues the previous Try It! for...Ch. 23 - Calculate the following variances: Fixed overhead...Ch. 23 - Prob. 18TICh. 23 - Prob. 19TICh. 23 - Prob. 20TICh. 23 - Prob. 21TICh. 23 - Prob. 22TICh. 23 - Prob. 23TICh. 23 - Prob. 24TICh. 23 - Prob. 25TICh. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNets sales volume variance for total costs is...Ch. 23 - MajorNets flexible budget variance for total costs...Ch. 23 - MajorNet Systemss managers could set direct labor...Ch. 23 - What is MajorNets direct labor cost variance for...Ch. 23 - What is MajorNets direct labor efficiency variance...Ch. 23 - FrontGrades standard variable manufacturing...Ch. 23 - Calculate the variable overhead cost variance for...Ch. 23 - Calculate the variable overhead efficiency...Ch. 23 - Prob. 10QCCh. 23 - MajorNet Systemss static budget predicted...Ch. 23 - Prob. 1RQCh. 23 - Prob. 2RQCh. 23 - What is a static budget performance report?Ch. 23 - How do flexible budgets differ from static...Ch. 23 - Prob. 5RQCh. 23 - What are the two components of the static budget...Ch. 23 - What is a flexible budget performance report?Ch. 23 - Prob. 8RQCh. 23 - Prob. 9RQCh. 23 - Give the general formulas for determining cost and...Ch. 23 - How does the static budget affect cost and...Ch. 23 - List the direct materials variances, and briefly...Ch. 23 - Prob. 13RQCh. 23 - Prob. 14RQCh. 23 - List the fixed overhead variances, and briefly...Ch. 23 - Prob. 16RQCh. 23 - Prob. 17RQCh. 23 - Prob. 18RQCh. 23 - Prob. 19RQCh. 23 - Prob. 20RQCh. 23 - Prob. 1SECh. 23 - Moje, Inc. manufactures travel locks. The budgeted...Ch. 23 - Complete the flexible budget variance analysis by...Ch. 23 - Prob. 4SECh. 23 - Setting standards for a product may involve many...Ch. 23 - Prob. 6SECh. 23 - Martin, Inc. manufactures lead crystal glasses....Ch. 23 - Martin, Inc. is a manufacturer of lead crystal...Ch. 23 - Prob. 9SECh. 23 - Prob. 10SECh. 23 - Prob. 11SECh. 23 - Prob. 12SECh. 23 - Prob. 13SECh. 23 - Prob. 14SECh. 23 - Prob. 15ECh. 23 - Murphy Company managers received the following...Ch. 23 - Prob. 17ECh. 23 - Prob. 18ECh. 23 - Prob. 19ECh. 23 - Prob. 20ECh. 23 - Prob. 21ECh. 23 - Prob. 22ECh. 23 - Prob. 23ECh. 23 - McCarthy Fender, which uses a standard cost...Ch. 23 - Cell One Technologies manufactures capacitors for...Ch. 23 - Morton Recliners manufactures leather recliners...Ch. 23 - Hear Smart manufactures headphone cases. During...Ch. 23 - Moss manufactures coffee mugs that it sells to...Ch. 23 - Review your results from Problem P23-28A. Mosss...Ch. 23 - Prob. 30BPCh. 23 - McKnight Recliners manufactures leather recliners...Ch. 23 - Headset manufactures headphone cases. During...Ch. 23 - Prob. 33BPCh. 23 - Review your results from Problem P23-33B....Ch. 23 - Download an Excel template for this problem online...Ch. 23 - This continues the Piedmont Computer Company...Ch. 23 - Prob. 1TIATCCh. 23 - Suppose you manage the local Scoopys ice cream...Ch. 23 - Drew Gastello, general manager of Sunflower...Ch. 23 - In 75 words or fewer, explain what a cost variance...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Place the letter of the appropriate accounting cost in Column 2 in the blank next to each decision category in ...
Fundamentals of Cost Accounting
18. What is the calculation for return on assets (ROA)? Explain what ROA measures.
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (5th Edition)
Calculating certain information using the direct method (Learning Objective 4) 20-25 min. Trudeaus Marine, Inc....
Financial Accounting, Student Value Edition (5th Edition)
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash...
Principles of Accounting Volume 1
1. For Frank’s Funky Sounds, straight-line depreciation on the trucks is a
Learning Objective 1
a. variable cos...
Horngren's Accounting (12th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Please help me with show all calculation thankuarrow_forwardK Juda Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Juda allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: Data table X Sales Static Budget Actual Results (1,025 recliners) (1,005 recliners) (1,025 recliners x $515 each) (1,005 recliners x $480 each) $ 527 875 S 482 400 Variable Manufacturing Costs: Direct Materials (6,150 yds @ $8.90/ yd.) (6,300 yds @ $8.707 yd.) 54.735 54.810 Direct Labor (10,250 DLHr @ $11.30/DLHr) (9,850 DLHr @ $11.40/DLHr) 115 825 112 290 Variable Overhead (6,150 yds @ $5.107 yd.) 31,365 (6,300 yds. @$6.50/yd.) 40.950 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold 62,730 64,730 264,655 272,780 263,220 $ 209,620 Gross Profitarrow_forwardComplete the flexible budget variance analysis by filling in the blanks in the partial flexible budget performance report for 10,000 travel locks for Galen, Inc. View the report. (Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. For variances with a $0 value, enter a 0 in the appropriate field. If a variance is $0, leave the favorable (F)/unfavorable (U) field blank.) Galen, Inc. Flexible Budget Performance Report (partial) For the Month Ended April 30, 2025 Actual Results Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income $ $ 10,000 170,000 52,100 117,900 15,700 102,200 Flexible Budget Variance $ Flexible Budget 10,000 150,000 50,000 100,000 14,800 85,200arrow_forward
- You work for a manufacturing company and have just completed the budget process for the upcoming business year. At the end of the first quarter, you take the actuals and compare them to the budget. You notice there are differences that need explanation and create the static and flexible budget variances. You present this to management and they request you to explain the variances in more detail. You go and create the Flexible Budget Performance Report and present this. You also need to explain the reasons for the variances and who is responsible. Explain the calculations used to create this report. Explain why the variances using standard costs better reflect the actual variance and how to determine who is responsible for each variancearrow_forwardThe Soda Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2022 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Required 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Requirement 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Begin by computing the actual contribution margins (CM). Then, compute the budgeted contribution margins in dollars for each product and in total for 2022. Actual CM Kola Lima Oranga Total Budgeted data Kola Lima Oranga Budget for…arrow_forwardSulert, Inc., produces and sells gel-filled ice packs. Sulerts performance report for April follows: Required: 1. Calculate the contribution margin variance and the contribution margin volume variance. 2. Calculate the market share variance and the market size variance. (CMA adapted)arrow_forward
- Please show calculationarrow_forwardDevin Company has the following data for their budget and actual performance. Master Budget Actual Master budget Variance Sales 154,804 155,896 Variable Costs 68,685 63,447 Fixed Costs 13,810 10,556 What is the operating income master budget variance? If it is an unfavorable variance use a negative sign immediately before your answer. Hint: Remember you'll need to calculate budgeted and actual operating income before you can determine the operating income master budget variance.arrow_forwardK Jay Draperies makes and sells curtains. Information related to its performance in 2020 is given below: (Click the icon to view the information.) (Click the icon to view the partially completed performance report.) Calculate Jay Draperies' flexible-budget and sales-volume variances for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income. Begin with the flexible-budget variance column, then the sales-volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Units sold Revenues (sales) Variable costs Contribution margin Fixed costs Operating income Data table EA Actual Flexible-Budget Results Variance 1,500 EA $ 285,000 162,750 122,250 75,000 47,250 Flexible Sales-Volume Budget Variance 1,500 ᏌᏊ 69 $ 300,000 165,000 135,000 77,000 58,000 - ☑ Reference EA EA Static Budget 1,400 280,000 154,000 126,000 77,000…arrow_forward
- When analyzing an organization's budget using 2-variance analysis, the 2 elements used are volume variance and: Select one: a. quantity variance b. price variance c. applied variance O d. budget variancearrow_forwardYour supervisor asks you to produce a budget variance report. Using the most common definition of “budget variance analysis,” what information is your supervisor looking for and why is this important in budget management?arrow_forwardComplete the flexible budget variance analysis by filling in the blanks in the partial flexible budget performance report for 10,000 travel locks for Gavin, Inc.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningExcel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY