The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues butwas happy with the result of his control performance which were all favorable, otherwise his net operatingincome would be much lower.The Vice President for operations is not satisfied with the performance report of the Tuguegarao CityBranch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao Citybranch manager.The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter endingMarch 31, 2021 is shown below:Cagayan Transport CompanyTuguegarao City BranchPERFORMANCE REPORTFor the Quarter Ending March 31, 2021BudgetP800.000ActualP760.000VarianceP40.000 URevenuesVariable Costs:Gas & OilRepairsSuppliesPayrollTotalFixed Costs:SupervisionRentDepreciationOthersP 60,00080,00080,000402.000P 622.000P 56,80078,40078,800390.000P 604.000P 3,200 F1,600 F1,200 F12.000 FP 18.000 FP 16,00016,00048,00016.000P 718.000P 82,000P 16,00016,00048,00016.000P 700.000P 60,000Total CostsOperating IncomeP 18.000 FP 22,000 UREQUIRED:1. Prepare a columnar flexible budget for expected costs at P720,000, P760,000, P800,000 andPS40,000 levels of revenue. Include both variable and fixed costs in the budget.2. How does Tuguegarao City Branch fair based on 95% level 95% level of operation in measuringits control performance over variable costs?

Budgeting - It is the statement showing future estimated cash inflows and cash outflows of the…

The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues but was happy with the result of his control performance which were all fayorable, otherwise his net operating income would be much lower. The Vice President for operations is not satisfied with the performance report of the Tuguegarao City Branch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao City branch manager. The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter ending March 31, 2021 is shown below:

The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues but was happy with the result of his control performance which were all fayorable, otherwise his net operating income would be much lower. The Vice President for operations is not satisfied with the performance report of the Tuguegarao City Branch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao City branch manager. The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter ending March 31, 2021 is shown below:

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 56P: In 20X1, Don Blackburn, president of Price Electronics, received a report indicating that quality...

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You are finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and you have been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board. You study the report, conduct appropriate research, and assess the costs involved. You conclude that it will be necessary to increase staff costs, but you believe these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations: Benefits should be related to the length of service of members of staff. After one year of continuous employment, a member of staff will qualify for private health insurance. Private health insurance should cover the member of staff and his or…
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he operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank’s operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank’s various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank has submitted the following cost data for last…
The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank’s operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank’s various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank has submitted the following cost data for last…
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