Please answer completely and correctly with explanation computation formula steps answer in text no copy paste show explanation and computation clearly for numbers provide full working for all steps with explanation Top managers of Juda Industries predicted 2024 sales of 15,100 units of its product at a unit price of$7.00. Actual sales for the year were 14,100 units at $12.50 each. Variable costs were budgeted at$2.20 per unit, and actual variable costs were $2.30 per unit. Actual fixed costs of $43,000 exceededbudgeted fixed costs by $5,200.Prepare Juda's flexible budget performance report. What variance contributed most to the year'sfavorable results? What caused this variance?Show Transcribed TextPrepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contributionmargin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances.For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.)Juda IndustriesFlexible Budget Performance ReportFor the Year Ended December 31, 2024 UnitsSales RevenueVariable CostsContribution MarginBudgetAmountsPer UnitFor the Year Ended December 31, 202413ActualResults2(1)-(3)FlexibleBudgetVarianceFlexibleBudget(3) - (5)SalesVolumeVariance5StaticBudget

Flexible budget is that budget which changes with change in activity level or sales level. This…

Top managers of Juda Industries predicted 2024 sales of 15,100 units of its product at a unit price of $7.00. Actual sales for the year were 14,100 units at $12.50 each. Variable costs were budgeted at $2.20 per unit, and actual variable costs were $2.30 per unit. Actual fixed costs of $43,000 exceeded budgeted fixed costs by $5,200. Prepare Juda's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Show Transcribed Text

Top managers of Juda Industries predicted 2024 sales of 15,100 units of its product at a unit price of $7.00. Actual sales for the year were 14,100 units at $12.50 each. Variable costs were budgeted at $2.20 per unit, and actual variable costs were $2.30 per unit. Actual fixed costs of $43,000 exceeded budgeted fixed costs by $5,200. Prepare Juda's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Show Transcribed Text

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

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 27BEB: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...

See similar textbooks

Similar questions

Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of 15.9 million and cost of goods sold of 8.75 million. Advertising is a key part of Coral Seas business strategy, and total marketing expense for the year is budgeted at 2.8 million. Total administrative expenses are expected to be 675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of 500,000 during the year? What effect would that have on operating income? On income before taxes? On net income?
Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
Review the completed master budget and answer the following questions: Is Ranger Industries expecting to earn a profit during the next quarter? If so, how much? Does the company need to borrow cash during the quarter? Can it make any repayments? Explain. (Carefully review rows 74 through 80.)
Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer to the information for Speedy Petes above. Assume that this information was used to construct the following formula for monthly delivery cost. TotalDeliveryCost=41,850+(12.00NumberofDeliveries) Required: Assume that 3,000 deliveries are budgeted for the following month of January. Use the total delivery cost formula for the following calculations: 1. Calculate total variable delivery cost for January. 2. Calculate total delivery cost for January.
Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Required: 1. What is Hammonds variable cost ratio? Its contribution margin ratio? 2. Suppose Hammonds actual revenues are 200,000 greater than budgeted. By how much will before-tax profits increase? Give the answer without preparing a new income statement. 3. How much sales revenue must Hammond earn in order to break even? What is the expected margin of safety? (Round your answers to the nearest dollar.) 4. How much sales revenue must Hammond generate to earn a before-tax profit of 130,000? An after-tax profit of 90,000? (Round your answers to the nearest dollar.) Prepare a contribution margin income statement to verify the accuracy of your last answer.
Top managers of Root Industries predicted 2024 sales of 14,700 units of its product at a unit price of $7.50. Actual sales for the year were 14,500 units at $9.50 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $5,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit 7.5 2.7 Root Industries Flexible Budget Performance Report For the Year Ended…
Top managers of Juda Industries predicted 2025 sales of 14,500 units of its product at a unit price of $10.00. Actual sales for the year were 14,300 units at $13.00 each. Variable costs were budgeted at $3.20 per unit, and actual variable costs were $3.30 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $2,000. Prepare Juda Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a 0 for any zero balances. Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input field blank.) Juda Industries Flexible Budget…
Top managers of Root Industries predicted 2025 sales of 14,500 units of its product at a unit price of $9.50. Actual sales for the year were 14,300 units at $11.00 each. Variable costs were budgeted at $3.40 per unit, and actual variable costs were $3.50 per unit. Actual fixed costs of $44,000 exceeded budgeted fixed costs by $5,000 Prepare Root Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a 0 for any zero balances. Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. For any $0 variances, leave the Favorable (F)Unfavorable (U) input field blank.) Units Sales Revenue Variable Costs…