Exercise 9-2 (Algo) Actlvlty Varlances [LO9-2]Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for Julyappears below:Flight CafePlanning BudgetFor the Month Ended July 31Budgeted meals (g)24, 000Revenue ($4.00g)Expenses:Raw materials ($1.80g)Wages and salaries ($6,300 + $0.20g)Utilities ($2,000 + Se.e5g)Facility rent ($3,400)Insurance ($2,100)Miscellaneous ($500 + se.1eq)Total expense$96, 00043, 20011.1003,2003,40e2, 1002,9ee65,900Net operating income$30, 100In July, 25.000 meals were actually served. The company's flexible budget for this level of activity appears below:Flight CaféFlexible BudgetFor the Month Ended Duly B1Budgeted meals (g)25,000Revenue ($4.00g)Expenses:Raw materials ($1.80g)Wages and salaries ($6, 309+ S0. 209)Utilities ($2,000 + se.esg)Facility rent ($3,480)Insurance ($2,100)Miscellaneous ($500 + $0.1eg)Total expense$19e, 00045,00011, B003,2503,4002, 1003,9e968,056Net operating incomeS 31,959Requlred:1. Calculate the company's activity variances for July. (Indicate the effect of each vorlance by selecting "F" for favorable. "U" forunfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as posltive values,)Flight CaféActivity VariancesFor the Month Ended July 31RevenueExpenses:Raw materialsWages and salariesUtilitiesFacility rentInsuranceMiscellaneousTotal expenseNet operating income

Revenue 96000 100000 4000 F Expenses: Raw materials 43200 45000 1800 UF Wages and…

afé prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July below: Flight Cafe Planning Budget For the Month Ended July 31 ed meals (q) 24, 000 e ($4.889) $96, 000 es: materials ($1.88g) s and salaries ($6,300 + $0.28q) ities ($2,809 + se.esq) lity rent ($3,400) rance ($2,108) ellaneous ($5see + se.1eg). еxpense erating income 43, 290 11,190 3, 290 3,40e 2, 180 2,90e 65.908 $30, 190 5,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Flexible Budget For the Month Ended July B1 ed meals (q) 25, 000 e ($4.809) es: materials ($1.80q) s and salaries ($6, 303+ se. 20q) ities ($2,800 + se.esq) lity rent ($3,480) rance ($2,100) ellaneous ($5ee + s0.1eg) expense erating income $190,089 45,000 11,300 3,250 3,400 2, 1e9 3,B09 68,050 $ 31,958

afé prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July below: Flight Cafe Planning Budget For the Month Ended July 31 ed meals (q) 24, 000 e ($4.889) $96, 000 es: materials ($1.88g) s and salaries ($6,300 + $0.28q) ities ($2,809 + se.esq) lity rent ($3,400) rance ($2,108) ellaneous ($5see + se.1eg). еxpense erating income 43, 290 11,190 3, 290 3,40e 2, 180 2,90e 65.908 $30, 190 5,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Flexible Budget For the Month Ended July B1 ed meals (q) 25, 000 e ($4.809) es: materials ($1.80q) s and salaries ($6, 303+ se. 20q) ities ($2,800 + se.esq) lity rent ($3,480) rance ($2,100) ellaneous ($5ee + s0.1eg) expense erating income $190,089 45,000 11,300 3,250 3,400 2, 1e9 3,B09 68,050 $ 31,958

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.6.3P

See similar textbooks

Similar questions

AN: Q6 Q7 Q8 The budget director of Birds and Beyond, Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January 2021: Estimated sales for January: Birdhouse 7.500 units at $66 per unit Bird feeder 5,000 units at $82 per unit Estimated inventories at January 1: Direct Materials: Finished Products: Wood: 198 ft. Birdhouse: 500 units at $28 per unit. Plastic: 420 lbs. Bird feeder: 210 units at $40 per unit. Desired inventories at January 31: Direct Materials: Finished Products: Wood: 220 ft. Birdhouse: 400 units at $28 per unit. Plastic: 340 lbs. Bird feeder: 250 units at $40 per unit. Direct materials used in…
xercise 8-4 (Algo) Direct Labor Budget [LO8-5] The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,200 6,500 7,100 8,000 Each unit requires 0.25 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 1,800 hours of work each quarter. If the number of required direct labor-hours is less than this…
Problem 8-29 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10]The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 9,200Accounts receivable $ 26,800Inventory $ 49,800Building and equipment, net $ 104,400Accounts payable $ 29,925Common stock $ 150,000Retained earnings $ 10,275The gross margin is 25% of sales.Actual and budgeted sales data:March (actual) $ 67,000April $ 83,000May $ 88,000June $ 113,000July $ 64,000Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales.Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold.One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at…
Standards for nonmanufacturing expenses The Radiology Department provides imaging services for Northeast Washington Medical Center. One important activity in the Radiology Department is transcribing digitally recorded analyses of images into a written report. The manager of the Radiology Department determined that the average transcriptionist could type 800 lines of a report in an hour. The plan for the first week in July called for 64,000 typed lines to be written. The Radiology Department has two transcriptionists. Each transcriptionist is hired from an employment firm (hat requires temporary employees to be hired for a minimum of a 40-hour week. Transcriptionists are paid $18.00 per hour. The manager offered a bonus if the department could type more than 70,000 lines for the week, without overtime. Due to high service demands, the transcriptionists typed more lines in the first week of July than planned. The actual amount of lines typed in (he first week of July was 70,400 lines, without overtime. As a result, the bonus caused the average transcriptionist hourly rate to increase to $20.00 per hour during the first week in July. Instructions Are there any performance-related issues that the labor time and rate variances fail to consider? Explain.
Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget? FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Required: 1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. 2. What if FlashKick added a third linetournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of 45 each in January and February, and 48 each in March? Prepare a sales budget for Flash- Kick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.
Budget performance report for a cost center Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands): During August, the costs incurred in the Crane Division were as follows: Instructions For which costs might the director be expected to request supplemental reports?
9 Problem 8-29 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,600 Accounts receivable $ 20,400 Inventory $ 40,200 Building and equipment, net $ 128,400 Accounts payable $ 23,925 Common stock $ 150,000 Retained earnings $ 22,675 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 51,000 April $ 67,000 May $ 72,000 June $ 97,000 July $ 48,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold. One-half of a month’s inventory purchases is paid for in the month of purchase; the…
Problem 8-29 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,600 Accounts receivable $ 20,400 Inventory $ 40,200 Building and equipment, net $ 128,400 Accounts payable $ 23,925 Common stock $ 150,000 Retained earnings $ 22,675 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 51,000 April $ 67,000 May $ 72,000 June $ 97,000 July $ 48,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold. One-half of a month’s inventory purchases is paid for in the month of purchase; the…
MCQS: 1) Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,500,000 Cost of sales: Direct Material $ 500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000 Gross Profit $ 1,875,000 Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000 Operating Income $ 875,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in all variable costs, and a $45,000 increase in fixed costs. The operating profit for next year would be: A $477,500. B $492,500. C $831,250. D $552,500. 2) Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent…
Ques 4 - Company has prepared the following summary from its functional budgets for the year ended 30th September 2020. Particulars Amount (in Rs.) Amount (in Rs.) Sales(1,00,000 units) 15,00,000 Opening Inventory( Zero Units) Nil Production Costs (1,15,000 units) Direct materials 4,60,000 Direct labour 5,75,000 Variable overhead 1,15,000 Fixed overhead 2,30,000 1,380,000 Closing inventory (15,000 units) (1,80,000) Cost of Sales 1,200,000 Gross Profit 3,00,000 Other overhead fixed costs (2,00,000) Net Profit 1,00,000 The directors of the company have now met to review the above statement. They have decided to revise the budget as follows: Due to competition, reduce the selling price by Rs.5 per unit and despite the reduction in selling price the demand for the product will reduce to 90,000 units. Increase some of the unit production…
Please answer req part 4 and 5 in its entirety, per the images attached Problem 8-29 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,300 Accounts receivable $ 19,200 Inventory $ 38,400 Building and equipment, net $ 124,800 Accounts payable $ 22,800 Common stock $ 150,000 Retained earnings $ 16,900 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 48,000 April $ 64,000 May $ 69,000 June $ 94,000 July $ 45,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold. One-half of a month’s inventory purchases is paid…
Problem 8-31 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Debits Credits Cash $ 60,000 Accounts receivable 216,000 Inventory 60,750 Buildings and equipment (net) 370,000 Accounts payable $ 91,125 Common stock 500,000 Retained earnings 115,625 $ 706,750 $ 706,750 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 270,000 January $ 405,000 February $ 602,000 March $ 317,000 April $ 213,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The…