MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Question
Chapter 8, Problem 3E
To determine
Concept introduction:
Flexible Budget: Flexible budget is prepared to find the standard revenues and costs at actual level of activity. Flexible budget is calculated using the actual level of activity and standard revenue and costs per activity. A Flexible budget shows the standard figures for the actual level of activity. A flexible budget is prepared to compare the actual figures with the standard figures for the same level of activity.
To prepare:
The Flexible Budget performance report.
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Please show how (step-by-step) you get the numbers for each account in the Flexible budget column.
Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November:
Bickel Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
Actual Results
Planning Budget
Variances
Customers served........................................
24,000
25,000
Revenue ($3.60q).........................................
$85,700
$90,000
$4,300 U
Expenses:
Wages and salaries ($22,200 + $1.20q)......
48,900
52,200
3,300 F
Supplies ($0.50q)......................................
13,000
12,500
500 U
Insurance ($5,700).....................................
5,600
5,700
100 F
Miscellaneous expense ($4,500 +…
Squillace Corporation uses customers served as its measure of activity. During October, the company budgeted for 38,000 customers, but actually served 35,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October.
Required:Prepare the company's flexible budget performance report for October (calculate both activity variances and revenue and spending variances). Label each variance as favorable (F) or unfavorable (U). Use the templates given below.
Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December:
Cicchetti Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended December 31
Actual
Results
36,000
$180,900
Planning
Budget
30,500
$152,500
Variances
Customers served
Revenue ($5.0q)
Expenses:
Wages and salaries ($37,300 + $1.8q)
Supplies ($0.8q)
Insurance ($14,300)
Miscellaneous expense ($7,300 + $0.3q)
Total expense
Net operating income
$28,400
F
105,400
28,300
14,650
19,950
168,300
$ 12,600
92,200
24,400
14,300
16,450
147,350
$ 5,150
13,200
3,900
350
3,500
U
U
U
U
20,950
$ 7,450
U
F
Required:
Prepare the company's flexible budget performance report for December. Select each variance as favorable (F), unfavorable (U) or "None".
Cicchetti Corporation
Flexible Budget Performance Report Part 1
For the Month Ended December 31
Actual
Revenue and
Flexible
Results
Spending Variances…
Chapter 8 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - A Company’s standard for a unit of its single...Ch. 8 - Prob. 5MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQ
Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Managers use management by exception for control...Ch. 8 - Tercer report the following on one of its...Ch. 8 - Prob. 9QSCh. 8 - Materials cost variances P2 Juan Company’s output...Ch. 8 - The following information describes a companys...Ch. 8 - Prob. 12QSCh. 8 - Fogel Co. expects 116,000 units for the year. The...Ch. 8 - AizPro Corp, reports the following for November....Ch. 8 - Refer to information in QS 8-14. Compute the...Ch. 8 - Prob. 16QSCh. 8 - A Preparing overhead entries P5 Refer to the...Ch. 8 - Mosaic Company applies overhead using machine...Ch. 8 - Refer to the information from QS 8-18. Compute the...Ch. 8 - Farad, Inc., specializes in selling used SUVs....Ch. 8 - In a recent year, BMW sold 216,944 of its 1 series...Ch. 8 - JPAK Company manufactures and sells mountain...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Exercise 21-8 Standard unit cost; total variance...Ch. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Refer to Exercise 8-13. Hart Company records...Ch. 8 - Prob. 15ECh. 8 - After evaluating Null Companys manufacturing...Ch. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Exercise 21-19 Computation of total overhead rate...Ch. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Phoenix Companys 2015 master budget included the...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 6PSACh. 8 - Tohono Companys 2015 master budget included the...Ch. 8 - Refer to the information in Problem 8-1B. Tohono...Ch. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Problem 21-6BA Materials, labor, and overhead...Ch. 8 - (This serial problem began in Chapter 1 and...Ch. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - The reason we use the words favorable when...Ch. 8 - Prob. 5BTNCh. 8 - Prob. 6BTNCh. 8 - Prob. 7BTNCh. 8 - Prob. 8BTNCh. 8 - Prob. 9BTN
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