MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 8, Problem 8SP
(This serial problem began in Chapter 1 and continues through most of the book if previous chapter segment were not completed the serial problem can begin at this point. It is helpful but not necessary to use the working papers that accompany the book.)
Business Solutions’s second quarter 2016 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.
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The Parker Corporation is a manufacturer of generic laptops. Fixed and variable
manufacturing overheads are allocated to each laptop using budgeted assembly
hours. Budgeted assembly time is 2 hours per laptop. Exhibit 5 shows the budgeted
amounts and actual results related to overhead for June 2019.
Exhibit 5 Manufacturing Overhead at Parker Corporation for June 2019
Actual Results
Static (Master)
Budget
Number of laptops assembled and sold
Hours of assembly time
Variable manufacturing overhead cost per Not disclosed
assembly hour
Variable manufacturing overhead costs
Fixed manufacturing overhead costs
225
| 360 hours
110
Not disclosed
$32/hour
Not disclosed
$10,780
$11,933
$12,180
Required: (a) Calculate the variable manufacturing overhead and fixed manufacturing overhead
flexible budget variances for June 2019 at Parker Corporation, in as much detail as possible. Indicate
whether the variances are favourable or unfavourable.
(b) Provide the journal entry (or entries) that close the…
Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $159,370
budgeted expenses include $106,650 in variable expenses for desks and $18,720 in variable expenses for chairs, as well as $34,000
fixed expenses. The actual expenses include $35,400 fixed expenses. List fixed and variable expenses separately.
Desk sales (in units)
Chair sales (in units)
Desk sales.
Chair sales
Total expenses
Income from operations
Desk sales
Chair sales
Variable expenses
Contribution margin
Fixed Budget Actual Results Variances
135
72
$170, 100
42,480
159,370
$ 53,210
Fixed expenses
income from operations
141
80
$176,250
48,400
168,050
$ 56,600
Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.
$6,150 F
5,920 F
8,680 U
$3,390 F
BUSINESS SOLUTIONS
Flexible Budget Performance Report
For Quarter Ended June 30
Flexible Budget Actual Results Variance
Fav/Unt.
Unfavorable
Favorable…
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,600 client-visits,
but its actual level of activity was 4,580 client-visits. The clinic has provided the following data concerning the formulas
used in its budgeting and its actual results for January:
Data used in budgeting:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total expenses
Actual results for January:
Revenue
Personnel expenses
Medical supplies
Fixed element
per month
Variable element
per client-visit
$ 36.60
$ 0
$ 28,600
$ 12.60
1,500
6.60
10,500
1.00
7,600
0.20
$ 48,200
$ 20.40
$ 130,000
$ 70,020
$ 21,012
$ 13,190
$ 7,440
Occupancy expenses
Administrative expenses
The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending
variance column on the flexible budget performance report) for January would be closest to:
Multiple Choice
○ $7,658 F
$7,982 U
○ $7,658 U
$7,982 F
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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