Item to Classify Standard Actual Sales Revenue 832,000 853,000 Wages 137,000 141,200 SGA Expenses 412,000 421,200 Cost of Goods Sold 621,200 612,000 The sales revenue flexible budget variance was: Multiple Choice $21,000 unfavorable. $11,800 favorable. $21,000 favorable. $1,800 unfavorable.
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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- Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:Assume that a company provided the following excerpts of information from its flexible budget performance report: Actual Results Flexible Budget Planning Budget Flights (q) 52 ? ? Expenses: Wages and salaries ($4,000 + $88.00q) $ 8,450 ? $ 8,400 What is the spending variance for wages and salaries expense? Multiple Choice $176 U $126 F $176 F $126 UMaster (Static) Budget Variance and Its Components As the new accountant for Cohen &Co., you have been asked to provide a succinct analysis of financial performance for the year justended. You obtain the following information that pertains to the company’s sole product:Actual Master (Static) BudgetUnits sold 40,000 45,000Sales $380,000 $450,000Variable costs 210,000 270,000Fixed costs 145,000 135,000Required1. What was the actual operating income for the period? Show calculations; round your answer to the nearest whole dollar.2. What was the company’s master (static) budget operating income for the period? Show calculations, andround your answer to the nearest whole dollar.3. (a) What was the total master (static) budget variance, in terms of operating income, for the period(rounded to nearest whole dollar)? (b) Is this variance favorable (F) or unfavorable (U)? Why? (Note:The total master (static) budget variance is also referred to as the total operating income variance for…
- Q3 Hollaway Corporation has the following data for the current fiscal year: Actual Budget Sales Units Product X 25,000 94,000 Product Y 135,000 107,000 Total 160,000 201,000 Contribution Margin Product X $ 15.00 $ 14.00 Product Y $ 12.00 $ 11.00 The total sales mix variance for both products is: (Round your percentages to one decimal place. Example: Round .1447 to .145 or 14.5%.) Multiple Choice $409,760 unfavorable. $133,760 favorable. $253,760 favorable. $153,760 favorable. $149,760 unfavorable.PRODUCT A PRODUCT B PRODUCT C Total Budgeted sales in pieces 2700 9500 5600 17800 Budgeted sale price in € 35 85 110 Actual sales in pieces 5000 18000 5800 28800 Actual selling price per piece 37 90 115 You are asked to find the total sales deviation, volume deviation and price deviation per productDistinguish between a standard and a budget. BE11.1 (LO 1 ), AP Lopez Company uses both standards and budgets. For the year, estimated production of Product X is 500,000 units. Total estimated cost for materials and labor are $1,400,000 and $1,700,000 , respectively. Compute the estimates for (a) a standard cost and (b) a budgeted cost.
- Q7 Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 2,600 3,600 7,200 6,700 Sales $ $ 13,000 $ 9,720 $ 14,400 $ 14,070 Variable costs 2,860 3,600 7,200 7,040 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,660 $ 5,500 $ 9,600 $ 9,440 Operating income $ 8,340 $ 4,220 $ 4,800 $ 4,630 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $2,880 favorable. $1,950 favorable. $3,900 favorable. $3,150 favorable. $2,220 favorable.Budget Actual Variance Revenue 400,000 354,750 (45,250) U Quantity/Volume 8,000 8,250 250 Price per Flu Shot $50 $43 $7 If more flu shots were given than budgeted for, why was there less revenue? How much of the Total Variance is due to Price and how much is due to Quantity/Volume? Was Price or Quantity/Volume controllable?(J) please answer ASap... Question 1 The following table presents selected information for Superior Flooring's monthly production budgets for the coming year. Superior's inventory policy is to have ending inventory equal to 10% of the next month's sales. What is the beginning inventory in June? A. 350 B. 310 C. 250 D. 340 Question 2 Which of the following statements is true? A. A budget reconciliation report shows the difference between actual profit and budgeted profit and does not show the other variances. B. Activity-based costing is not used to evaluate customer profitability. C. Sales quantity (budgeted sales volume vs. actual sales volume) is the only item which differs between the master budget and the flexible budget. D. Comparing the flexible budget to the as-if budget isolates a change in input price (e.g. budgeted input price vs. actual input price). Question 3 Which of the following is not a benefit of budgeting? A. It reduces the need for analysis with regard to company…
- Marsh, Inc. provides the following information: Actual Sales Static Budget Flexible Budget Sales Volume Variance Sales Revenue $560,000 $528,000 $460,000 ? Calculate the sales volume variance. A. $100,000 F B. $32,000 F C. $68,000 U D. $32,000 U1) Total Flexible budget Budget Assumptions Operating Income 800 Volume (units) 800 1,000 $525 Revenue $423,840 $ 420,000.00 $525,000 - Variable Cost $206,205 $200,483.20 $250,604 $250.60 = Contribution Margin $217,635 $ 219,516.80 $274,396 $274.40 - Fixed Cost $100,000 $ 115,000.00 $115,000 = Operating Income $117,635 $ 104,516.80 $159,396 sales activity variances $ (54,879.20) Master Budget Variances ($41,761) Flex Variances $13,118.20 how to find a -Production Volume Variance (Fixed Overhead) from a table above??Sales Variances; Flexible-Budget Variance; Review of Chapter 14 Robinson Company hastwo products, A and B. Robinson’s budget for August follows:Master BudgetProduct A Product BSales $240,000 $300,000Variable cost 140,000 180,000Contribution margin $100,000 $120,000Fixed cost 80,000 40,000Operating income $ 20,000 $ 80,000Selling price $ 120 $ 50On September l, these operating results for August were reported:Operating ResultsProduct A Product BSales $180,400 $341,120Variable cost 106,600 216,480Contribution margin $ 73,800 $124,640Fixed cost 80,000 40,000Operating income $ (6,200) $ 84,640Units sold 1,640 6,560Required1. For each product, determine the following variances measured in dollars of contribution margin:a. Flexible-budget variance.b. Sales volume variance.c. Sales quantity variance.d. Sales mix variance.2. Explain the amount of the flexible-budget variance using the amounts of the selling price and variablecost variances.