Units sold Cevenues "C M C Operating Income Actual Results 3800 444600 304000 140600 62000 78600 Flexible-Budget Variances 0 7600 F 11400 U 3800 U 2000 F 1800 U Flexible Budget 3800 437000 292600 144400 64000 80400 Sales-Volume Variances 200 U 23000 U 15400 F 7600 U 0 7600 U Static Budget 4000 460000 308000 152000 64000 88000

Units sold Cevenues "C M C Operating Income Actual Results 3800 444600 304000 140600 62000 78600 Flexible-Budget Variances 0 7600 F 11400 U 3800 U 2000 F 1800 U Flexible Budget 3800 437000 292600 144400 64000 80400 Sales-Volume Variances 200 U 23000 U 15400 F 7600 U 0 7600 U Static Budget 4000 460000 308000 152000 64000 88000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 18MC: A flexible budget______. A. predicts estimated revenues and costs at varying levels of production B....

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The following information is available for Top Company: Actual Result Flexible budget variance Flexible budget Sales volume variance Static budget Static budget variance Unit sold 150 a) b) c) 120 d) Revenues 1800 e) f) g) 2160 h) Variable cost 1050 i) j) k) 1500 l) Contribution margin 750 m) n) o) 660 p) Fixed cost 350 q) r) s) 300 t) Operating income 400 u) v) w) 360 x) Required: Find the missing item (a) through (x). For the variances indicate whether it is favorable (F) or unfavorable (U).
Management Accounting Question (Qualitative Short Answer) a. Why is the sales forecast the starting point in budgeting? b. What is a perpetual budget? c. Which is a better basis for evaluating actual results: budgeted performance or past performance? Why? d. The materials price variance can be computed at what two different points in time? Which point is better and why? e. What effect, if any, would you expect purchasing poor-quality materials to have on direct labor variances? f. Distinguish between ideal and practical standards. g. Costs associated with the quality of conformance can be broken down into four broad groups. What are these four groups and how do they differ? h. What is likely the most effective way to reduce a company's total quality costs? i. What are the three main uses of quality cost reports?
Find the missing values and label F/U Direct Labor Direct Labor Direct Labor Rate Variance Efficiency Variance Spending Variance A.$ 1500 U $2700 F ? B.$ 1250 F ? $2000 U C.$ 1750 F ? $3300 F D. ? $ 1250 U $4000 U E. ? $ 1850 F $ 2700 F.$1400 U $1900 U ?
1. What is the budgeted sales price per unit? 2. What is the budgeted variable expense per unit? 3. What is the budgeted fixed cost for the period? 4. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management would like to determine the portion of the master budget variance that is (a) due to volume being different than originally anticipated and (b) due to some other unexpected cause. Prepare a flexible budget performance report to address these questions, using the actual sales volume of 52,500units and the budgeted sales volume of 50,000units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 45,000 to 57,500 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: a. How much of the master budget variance (calculated in…
1- Given the following information is the variance favorable or unfavorable? Flexible Budget Sales $100,000 Actual Sales $95,000 Group of answer choices Favorable/Unfavorable? 2- Given the following information is the variance favorable or unfavorable? Master Budget Variable Costs $100,000 Flexible Budget Variable Costs $95,000 Group of answer choices Favorable/Unfavorable? 3- Given the following information is the variance favorable or unfavorable? Master Budget Sales $100,000 Flexible Budget Sales $95,000 Group of answer choices Favorable/Unfavorable? 4- Given the following information is the variance favorable or unfavorable? Flexible Budget Fixed Costs $100,000 Actual Fixed Costs $95,000 Group of answer choices Favorable/Unfavorable?
Variances Spending Efficiency Production-Volume Variable Manufacturing Overhead $7,500 F $30,000 U 0 Fixed Manufacturing Overhead $28,000 U 0 $80,000 U 1. In a combined 3-variance analysis, what would the variance report show? (HINT: The answer is total spending variance $20,500 unfavorable, but I need work to support this)
Can you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000 Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0 Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000 = $220,000 ii) Cost Variance, Volume Variance and Management Variance Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000 Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000 iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000 Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000 Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000) Can you help me interpret these results
The following variances are determined by Bulldogs Co.: · Sales Price Variance – 560,000 favorable · Cost Price Variance – 120,000 unfavorable · Sales Volume Variance – 255,000 unfavorable · Cost Volume Variance – 550,000 unfavorable If based on the forecast the budgeted sales amounts to P2,462,000, what is the amount of actual sales? 2,647,0002,157,0002,767,0002,610,000
Show transcribed image text 15.What activity variances would Adger report with respect to each of its expenses? (Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and None for no effect (i.e., zero variance). Input all amounts as positive values.) [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers.
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?
Requirement 2. Prepare a flexible-budget-based variance analysis of the September performance. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Enter operating losses with a minus sign or parentheses.) Actual Results Units sold Revenues Variable costs Contribution margin Fixed costs Operating income (loss)
3. The following information is available from the KANSAN CORP.: Actual factory O/H P15,000 Fixed O/H expenses, actual P7,200 Fixed O/H expenses, budgeted P7,000 Actual hours 3,500 Standard hours 3,800 Variable O/H rate per DLH P2.50 Assuming that Tyro uses a three-way analysis of O/H variances, what is the spending variance?