Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (12th Edition)
12th Edition
ISBN: 9780134642949
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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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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Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales.
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blankblankFlexible Budget
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100,000
80,000
90,000
Sales
$3,710,000
$fill in the blank 1
$fill in the blank 2
Cost of Goods Sold
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Direct Material
$900,000
$fill in the blank 3
$fill in the blank 4
Direct Labor
1,100,000
fill in the blank 5
fill in the blank 6
Variable Manufacturing Overhead
260,000
fill in the blank 7
fill in the blank 8
Fixed Manufacturing Overhead
70,000
fill in the blank 9
fill in the blank 10
Cost of Goods Sold
$2,330,000
$fill in the blank 11
$fill in the blank 12
Gross Profit
$1,380,000
$fill in the blank 13
$fill in the blank 14
Variable Sales and Administrative Expenses
200,000
fill in the blank 15
fill in the blank 16
Fixed Sales and Administrative…
Management Accounting
Course Project – Part 1, B Group
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The Terranova Company is preparing information to complete its master budget for the quarter ending December 31, 2020. Â The company intends to make unit sales in the related months as follows:
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September​  5,000
October ​  9,750
November​ 11,700
December​ 14,625
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Units are to be sold for $10 each. Â Sales are 60% for cash and 40% on credit. Â Credit sales are collected in the month following the sale.
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*Required: Â
1) Prepare a sales budget for Terranova for the quarter ending December 31, 2020. Â Show activity by month and in total. Â (Hint: Â a quarter = 3 months.)
2) Complete a schedule of expected cash collections for the quarter ending December 31, 2020. Â Show activity by month and in total.
Flexible Budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. Round your labor rate to nearest cent.$
Chapter 23 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (12th Edition)
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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