Budgets: A budget is prepared to know the estimates related to a particular item. There can be budgeted income statement , budgeted balance sheet , cash budget , merchandise budget, sales budget etc. A budget can be used as a good tool for the planning and controlling purposes. Flexible budgets: A flexible budget can be defined as the budget which changes with the level of output or the level of activity. The sales revenue or sales unit changes and accordingly, the costs related to the level of activity changed is changed. Requirement 1 To prepare: Flexible budget performance report

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem E23.17E

To determine

Concept Introduction:

Budgets:

A budget is prepared to know the estimates related to a particular item. There can be budgeted income statement, budgeted balance sheet, cash budget, merchandise budget, sales budget etc. A budget can be used as a good tool for the planning and controlling purposes.

Flexible budgets:

A flexible budget can be defined as the budget which changes with the level of output or the level of activity. The sales revenue or sales unit changes and accordingly, the costs related to the level of activity changed is changed.

Requirement 1

To prepare:

Flexible budget performance report

To determine

Requirement 2

Variances that contributed most to the year’s favourable results

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Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor unges Description 920 hours $27 per hour 190 hours for Job 101 340 hours for Job 102 Factory supervision Production engineer Factory Janitorial work Selling, general, and administrative salaries Total payroll costs Required: 390 hours for Job 103 Total Cost $ 5,130 9,180 10,530 $ 24,840 4,350 7,100 1,200 8,800 $ 46,298 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet A B Record Fairfield Company's payroll costs to be paid at a later date. Note Enter debits before credits. S.No Date 1 Account Title Debit Credit

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?

Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem E23.17E

To determine

Concept Introduction:

Budgets:

A budget is prepared to know the estimates related to a particular item. There can be budgeted income statement, budgeted balance sheet, cash budget, merchandise budget, sales budget etc. A budget can be used as a good tool for the planning and controlling purposes.

Flexible budgets:

A flexible budget can be defined as the budget which changes with the level of output or the level of activity. The sales revenue or sales unit changes and accordingly, the costs related to the level of activity changed is changed.

Requirement 1

To prepare:

Flexible budget performance report

To determine

Requirement 2

Variances that contributed most to the year’s favourable results

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem E23.17E

To determine

Concept Introduction:

Budgets:

A budget is prepared to know the estimates related to a particular item. There can be budgeted income statement, budgeted balance sheet, cash budget, merchandise budget, sales budget etc. A budget can be used as a good tool for the planning and controlling purposes.

Flexible budgets:

A flexible budget can be defined as the budget which changes with the level of output or the level of activity. The sales revenue or sales unit changes and accordingly, the costs related to the level of activity changed is changed.

Requirement 1

To prepare:

Flexible budget performance report

To determine

Requirement 2

Variances that contributed most to the year’s favourable results

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem E23.17E

To determine