MANAGERIAL ACCT (LL) W/ ACCESS CODE >C
4th Edition
ISBN: 9781323478684
Author: Braun
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.12SE
Interpret a performance report (Learning Objective 5)
The following is a partially completed performance report for Sunshine Pools.
10.1-15 Full Alternative Text
- A. How many pools did Sunshine Pools originally think it would install in April?
- B. How many pools did Sunshine Pools actually install in April?
- C. How many pools is the flexible budget based on? Why?
- D. What was the budgeted sales price per pool?
- E. What was the budgeted variable cost per pool?
- F. Define the flexible
budget variance . What causes it? - G. Define the volume variance. What causes it?
- H. Fill in the missing numbers in the performance report.
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(Learning Objective 5: Use the COGS model to make management decisions)Spicer Industries prepares budgets to help manage the company. Spicer is budgeting forthe fiscal year ended January 31, 2018. During the preceding year ended January 31, 2017,sales totaled $9,700 million and cost of goods sold was $6,400 million. At January 31, 2017,inventory was $1,500 million. During the upcoming 2018 year, suppose Spicer expects costof goods sold to increase by 12%. The company budgets next year’s ending inventory at$1,800 million.Requirement1. One of the most important decisions a manager makes is how much inventory to buy. Howmuch inventory should Spicer purchase during the upcoming year to reach its budget?
(J)
Citations are required for this exercise. Comments to other students must be detailed and substantive.
Alpaca Industries, located in the beauty pacific Northwest, manufactures a household electronic device. The company is fairly small with revenues and total assets of approximately $370,000 and $300,000, respectively. The company has never maintained a budget since its inception, and as a new hire, you are eager to create a budget for the company. Write a 1-page memo, explaining to the owner the advantages of budgeting. In your memo, provide exact page number citations.
Please note that any responses without citations will not be graded. Only the original responses are graded; subsequent edits are not graded.
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
Fixed element per month
Variable element per student
Variable element per course
Revenue
$ 0
$ 298
$ 0
Faculty wages
$ 0
$ 0
$ 3,100
Course supplies
$ 0
$ 52
$ 40
Administrative expenses
$ 26,500
$ 27
$ 52
In March, the school budgeted for 1,910 students and 88 courses. The school's income statement showing the actual results for the month appears below:
Roberds Tech
Income Statement
For the Month Ended March 31
Actual students
1,810
Actual courses
91
Revenue
$ 411,340
Expenses:
Faculty wages
214,950
Course supplies
62,590
Administrative expenses
84,562
Total expense
362,102
Net operating income
$ 49,238
Required:
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending…
Chapter 10 Solutions
MANAGERIAL ACCT (LL) W/ ACCESS CODE >C
Ch. 10 - (Learning Objective 1) Companies often...Ch. 10 - (Learning Objective 1) Which of the following is...Ch. 10 - (Learning Objective 1) In terms of responsibility...Ch. 10 - (Learning Objective 2) Which of the following is...Ch. 10 - (Learning Objective 2) A segment margin is the...Ch. 10 - Prob. 6QCCh. 10 - Prob. 7QCCh. 10 - Prob. 8QCCh. 10 - Prob. 9QCCh. 10 - Prob. 10QC
Ch. 10 - Identify and understand responsibility centers...Ch. 10 - Identify types of responsibility centers (Learning...Ch. 10 - Identify centralized and decentralized...Ch. 10 - Prob. 10.4SECh. 10 - Prob. 10.5SECh. 10 - Prob. 10.6SECh. 10 - Calculate ROI (Learning Objective 3) Refer to Epic...Ch. 10 - Prob. 10.8SECh. 10 - Prob. 10.9SECh. 10 - Prob. 10.10SECh. 10 - Prob. 10.11SECh. 10 - Interpret a performance report (Learning Objective...Ch. 10 - Prob. 10.13SECh. 10 - Classify KPIs by balanced scorecard perspective...Ch. 10 - Use vocabulary terms (Learning Objectives 1, 2, 3,...Ch. 10 - Prob. 10.16SECh. 10 - Identify type of responsibility center (Learning...Ch. 10 - Complete and analyze a performance report...Ch. 10 - Prepare a segment margin performance report...Ch. 10 - Compute and interpret the expanded ROI equation...Ch. 10 - Prob. 10.21AECh. 10 - Prob. 10.22AECh. 10 - Comparison of ROI and residual income (Learning...Ch. 10 - Prob. 10.24AECh. 10 - Comprehensive flexible budget problem (Learning...Ch. 10 - Prepare a flexible budget performance report...Ch. 10 - Work backward to find missing values (Learning...Ch. 10 - Construct a balanced scorecard (Learning Objective...Ch. 10 - Sustainability and the balanced scorecard...Ch. 10 - Identify type of responsibility center (Learning...Ch. 10 - Complete and analyze a performance report...Ch. 10 - Prob. 10.32BECh. 10 - Prob. 10.33BECh. 10 - Prob. 10.34BECh. 10 - Prob. 10.35BECh. 10 - Prob. 10.36BECh. 10 - Prob. 10.37BECh. 10 - Prob. 10.38BECh. 10 - Prob. 10.39BECh. 10 - Prob. 10.40BECh. 10 - Prob. 10.41BECh. 10 - Sustainability and the balanced scorecard...Ch. 10 - Prepare a budget with different volumes for...Ch. 10 - Prepare and interpret a performance report...Ch. 10 - Prob. 10.45APCh. 10 - Prob. 10.46APCh. 10 - Prob. 10.47APCh. 10 - Evaluate subunit performance (Learning Objectives...Ch. 10 - Prob. 10.49BPCh. 10 - Prob. 10.50BPCh. 10 - Evaluate divisional performance (Learning...Ch. 10 - Prob. 10.52BPCh. 10 - Determine transfer price at a manufacturer under...Ch. 10 - Evaluate subunit performance (Learning Objectives...Ch. 10 - Prob. 10.55SC
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