Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
12th Edition
ISBN: 9780134486826
Author: MILLER-NOBLES, Tracie L.; Mattison, Brenda L.; Matsumura, Ella Mae
Publisher: PEARSON
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Textbook Question
Chapter 23, Problem S23.3SE
Calculating flexible budget variances
Learning Objective 1
Complete the flexible budget
GRANT, INC.
Flexible Budget Performance Report (partial)For the Month Ended April 30,2018
Actual Flexible Budget Flexible
Budget Variance Budget
Units | 9.000 | (a) | 9,000 | |
Sales Revenue | S 126,000 | (b) | (c) | $ 108,000 |
Variable Costs | 52,300 | (d) | (e) | 50,300 |
Contribution Margin | 73,700 | (f) | (g) | 57,700 |
Fixed Costs | 16,100 | (h) | (i) | 14,900 |
Operating Income | $ 57,600 | (j) | (k) | $ 42,800 |
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E9-26A Budgeted income statement (Learning Objective 2)
Delta Labs performs a specialty lab test for local companies for $45 per test. For the
upcoming quarter, Delta Labs is projecting the following sales:
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Prepare a budgeted income statement for the first quarter, with a column for each month
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in.
Unit Learning Outcomes
LO1: Explore the nature, source, and purpose of management accounting
information.
LO2: Evaluate management accounting techniques to inform optimal resource
allocation and decision-making.
LO3: Analyse actual and standard costs to control and correct variances.
LO4: Evaluate how the management accounting function contributes to performance
measurement and monitoring.
Transferable skills and competencies developed
Vocational scenario
You have been hired as a Junior Management Accountant by a manufacturing
company called Columbus Canopy Company (CCC) is a leading player in the industry
and is constantly striving to maintain its competitive advantage. The company is
experiencing rapid growth and facing various challenges in resource allocation,
decision-making, and performance…
TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempting to
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report appears below:
Lessons
Revenue
Expenses:
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Aircraft depreciation
Fuel
TipTop Flight School
Variance Report
For the Month Ended July 31
Maintenance
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Administration
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Instructor wages
Aircraft depreciation
Fuel
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Administration
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Results
145
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Planning
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140
8,510
8,400
4,350
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2,470
1,960
2,010
1,900
1,465
1,480
3,265
3,340
22,070
21,280
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After several months of using such variance reports, the owner has become frustrated. For example, she is quite confident that
instructor wages were very tightly controlled in July, but the report shows an unfavorable…
Chapter 23 Solutions
Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
Ch. 23 - Prob. 1QCCh. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems has budgeted three hours of...Ch. 23 - MajorNet Systems has budgeted three hours of...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - The person probably most responsible for the...
Ch. 23 - HajorNet System’s static budget predicted...Ch. 23 - What is a variance?Ch. 23 - Explain the difference between a favorable and an...Ch. 23 - What is a static budget performance report?Ch. 23 - How do flexible budgets differ from static...Ch. 23 - How is a flexible budget used?Ch. 23 - What are the two components of the static budget...Ch. 23 - What is a flexible budget performance report?Ch. 23 - What is a standard cost system?Ch. 23 - Explain the difference between a cost standard and...Ch. 23 - Give the general formulas for determining cost and...Ch. 23 - How does the static budget affect cost and...Ch. 23 - List the direct materials variances, and briefly...Ch. 23 - List the direct labor variances, and briefly...Ch. 23 - List the variable overhead variances, and briefly...Ch. 23 - List the fixed overhead variances, and briefly...Ch. 23 - How is the fixed overhead volume variance...Ch. 23 - What is management by exception?Ch. 23 - List the eight product variances and the manager...Ch. 23 - Briefly describe how journal entries differ in a...Ch. 23 - What is a standard cost income statement?Ch. 23 - Matching terms Learning Objective 1 Match each...Ch. 23 - Preparing flexible budgets Learning Objective 1...Ch. 23 - Calculating flexible budget variances Learning...Ch. 23 - Matching terms Learning Objective 2 Match each...Ch. 23 - Identifying the benefits of standard costs...Ch. 23 - Calculating materials variances Learning Objective...Ch. 23 - Calculating labor variances Learning Objective 3...Ch. 23 - Interpreting material and labor variances Learning...Ch. 23 - Computing standard overhead allocation rates...Ch. 23 - Computing overhead variances Learning Objective 4...Ch. 23 - Understanding variance relationships Learning...Ch. 23 - Journalizing materials entries Learning Objectives...Ch. 23 - Journalizing labor entries Learning Objectives 6...Ch. 23 - Preparing a standard cost income statement...Ch. 23 - Preparing a flexible budget Learning Objective 1...Ch. 23 - Preparing a flexible budget performance report...Ch. 23 - Preparing a flexible budget performance report...Ch. 23 - Defining the benefits of setting cost standards...Ch. 23 - Calculating materials and labor variances Learning...Ch. 23 - Computing overhead variances Learning Objective 4...Ch. 23 - Calculating overhead variances Learning Objective...Ch. 23 - Preparing a standard cost income statement...Ch. 23 - Preparing journal entries Learning Objective 6 MOH...Ch. 23 - Preparing a standard cost income statement...Ch. 23 - Preparing a flexible budget performance report...Ch. 23 - Preparing a flexible budget computing standard...Ch. 23 - Computing standard cost variances and reporting to...Ch. 23 - Computing and journalizing standard cost variances...Ch. 23 - Prob. P23.29APGACh. 23 - Preparing a flexible budget performance report...Ch. 23 - Preparing a flexible budget and computing standard...Ch. 23 - Prob. P23.32BPGBCh. 23 - Prob. P23.33BPGBCh. 23 - Preparing a standard cost income statement...Ch. 23 - Prob. P23.35CTCh. 23 - Preparing a flexible budget and performance report...Ch. 23 - Prob. 23.1TIATCCh. 23 - Decision Case 23-1 Suppose you manage the local...Ch. 23 - Fraud Case 23-1 Drew Castello, general manager of...
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