ACCOUNTING PRCINCIPLES (CCCS CUSTOM)
14th Edition
ISBN: 9781119845102
Author: Weygandt
Publisher: WILEY
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Chapter 25, Problem 5E
To determine
Introduction:
A flexible budget refers to a budget where the comparison between actual performance and estimation is made on the basis of the same level of activity. This level of activity is considered to be the actual performance level, such as actual units produced.
To prepare: The preparation of selling expense flexible budget.
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Students have asked these similar questions
Cadiz Co. uses flexible budgets to control its selling expenses. Monthly sales are
expected to be from $300,000 to $360,000. Variable costs and their percentage
relationships to sales are:
Sales commissions
5%
Advertising
4%
Traveling
7%
Delivery
1%
Fixed selling expenses consist of sales salaries $40,000 and depreciation on
delivery equipment $10,000.
The actual selling expenses incurred in February, 2020, by Cadiz are as follows:
Sales commissions
$17,200
Advertising
12,000
Traveling
23,700
Delivery
2,400
Fixed selling expenses consist of sales salaries $41,500 and depreciation on
delivery equipment $10,000.
Instructions
Prepare a flexible budget performance report, assuming that February sales wore
$330,000.
2) Conner Hardware, Inc's static budget for the year is shown below:
Sales (25,000 units)
Cost of Goods Sold:
Direct Material
Direct Labor
Overhead (includes $4 per unit Variable cost)
Gross Profit
Selling Expenses
Sales Commissions (Variable)
Rent (Fixed)
Insurance (Fixed)
General and administrative expenses
Salaries (fixed)
Rent (Fixed)
Depreciation (Fixed)
Sales
Variable Cost:
Direct Materials
Direct Labor
Variable OH
Sales Commission
Total Variable Cost
Contribution Margin
Fixed Cost:
Fixed OH
Rent Expense-Selling
Insurance Expense
Salaries Expense
Rent Expense-General
Prepare a flexible budget for Connor Hardware Inc. that shows a detailed budget for its static budget
and its actual sales volume of 40,000 units. Use the contribution margin approach.
Depreciation Expense
Total Fixed Cost
Income from Operations
$150,000
300,000
175,000
25,000 units
50,000
90,000
35,000
100,000
40,000
60,000
$1,200,000
625,000
575,000
375,000
$ 200,000
40,000 units
Muhanga Corporation sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows.
Product
Sales Volume (Units)
Selling Price
Variable Cost
R
17,600
$ 19
$ 13
S
13,600
15
6
T
54,800
16
10
What is the company's weighted-average unit contribution margin?
Chapter 25 Solutions
ACCOUNTING PRCINCIPLES (CCCS CUSTOM)
Ch. 25 - Prob. 1QCh. 25 - Prob. 2QCh. 25 - Prob. 3QCh. 25 - 4. Ken Bay questions the usefulness of a master...Ch. 25 - Prob. 5QCh. 25 - Prob. 6QCh. 25 - Prob. 7QCh. 25 - Prob. 8QCh. 25 - Prob. 9QCh. 25 - Prob. 10Q
Ch. 25 - Prob. 11QCh. 25 - Prob. 12QCh. 25 - Prob. 13QCh. 25 - Prob. 14QCh. 25 - Prob. 15QCh. 25 - Prob. 16QCh. 25 - Prob. 17QCh. 25 - Prob. 18QCh. 25 - Prob. 19QCh. 25 - Prob. 20QCh. 25 - Prob. 21QCh. 25 - Prob. 22QCh. 25 - Prob. 23QCh. 25 - Prob. 24QCh. 25 - Prob. 25QCh. 25 - Prob. 26QCh. 25 - Prob. 1BECh. 25 - Prob. 2BECh. 25 - Prob. 3BECh. 25 - Prob. 4BECh. 25 - Prob. 5BECh. 25 - Prob. 6BECh. 25 - (LO 3) Torres Company accumulates the following...Ch. 25 - Prob. 8BECh. 25 - Prob. 9BECh. 25 - Prob. 10BECh. 25 - Prob. 11BECh. 25 - Prob. 12BECh. 25 - Prob. 1DIECh. 25 - Prob. 2DIECh. 25 - Prob. 3DIECh. 25 - Prob. 4DIECh. 25 - Prob. 1ECh. 25 - E24-2 Crede Company budgeted selling expenses of...Ch. 25 - Prob. 3ECh. 25 - Prob. 4ECh. 25 - Prob. 5ECh. 25 - Prob. 6ECh. 25 - Prob. 7ECh. 25 - Prob. 8ECh. 25 - Prob. 9ECh. 25 - Prob. 10ECh. 25 - Prob. 11ECh. 25 - Prob. 12ECh. 25 - Prob. 13ECh. 25 - Prob. 14ECh. 25 - Prob. 15ECh. 25 - Prob. 16ECh. 25 - Prob. 17ECh. 25 - Prob. 18ECh. 25 - Prob. 19ECh. 25 - Prob. 20ECh. 25 - Prob. 21ECh. 25 - Prob. 1PSACh. 25 - (LO 2) Zelmer Company manufactures tablecloths....Ch. 25 - Prob. 3PSACh. 25 - Prob. 4PSACh. 25 - Prob. 5PSACh. 25 - Prob. 6PSACh. 25 - Prob. 7PSACh. 25 - Service Green Pastures is a 400-acre farm on the...Ch. 25 - Prob. 2EYCTCh. 25 - Prob. 3EYCTCh. 25 - Prob. 4EYCTCh. 25 - Prob. 5EYCTCh. 25 - Prob. 7EYCT
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