MANAGERIAL ACCOUNTING (ACCESS) >C<
22nd Edition
ISBN: 9781307839319
Author: Garrison
Publisher: MCG/CREATE
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 13E
To determine
Concept Introduction:
Flexible budget performance report: This report compares actual outcomes for a period to budgeted results produced by a flexible budget. This report differs from a traditional budget. This method yields budgeted expenses that are significantly more relevant to an organization's actual performance.
To prepare: A flexible budget performance report.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Ma 1
Prepare a PLANNED BUDGET for the month of December 2022 for your imaginary company assuming any level of activity.
Prepare a SUMMARY OF ACTUAL RESULTS for the month of December 2022 for your imaginary company assuming any level of activity different from planned level of activity. That means, if you prepare a planned budget for 1000 units, your actual results should be for more than or less than 1000 units.
Prepare a FLEXIBLE BUDGET for the actual level of activity for the month of December 2022 for your imaginary company.
Prepare a PERFORMANCE REPORT (by comparing actual results with flexible budget) and shows therein REVENUE AND SPENDING VARIANCES.
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters
(cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is planning its
raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving
smoothly, the company has the following inventory requirements:
a. The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 25% of the next month's
sales. The finished goods inventory on June 30 is budgeted to be 13,250 units.
b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for
raw materials. The raw materials inventory on June 30 is budgeted to be 63,375 cc of solvent H300.
c. The company maintains no work in process inventories.
A monthly sales budget for Supermix for the third…
4. Prepare a direct labor cost budget for March. FOLLOW UP for question #4
Chapter 9 Solutions
MANAGERIAL ACCOUNTING (ACCESS) >C<
Ch. 9 - Prob. 1QCh. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3QCh. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - Prob. 10Q
Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 2F15Ch. 9 - Prob. 3F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 -
L09-1, LO9-2, LO9-3
Adger Corporation is a...Ch. 9 - Prob. 8F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 10F15Ch. 9 - Prob. 11F15Ch. 9 - Prob. 12F15Ch. 9 - Prob. 13F15Ch. 9 - Prob. 14F15Ch. 9 - Prob. 15F15Ch. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 -
EXERCISE 9-3 Revenue and Spending Variances...Ch. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24CCh. 9 - Prob. 25CCh. 9 - Prob. 26C
Knowledge Booster
Similar questions
- Question 2:Different type of Budget name are specify in front of each description, You are required to write the budget name in 3rd column with reason as option 1 is solved as an example. Description Name of Budget Option with analysis (Answering Вох) 1.It is the forecast of the overall sales for Direct Material Sale Budget the year, so that next year it can be a Usage Budget Reason: Because it is related to better estimate the estimation of sale value according to the company availability of resources. 2. A budget that usually take in to account Plant Utilization the opening and closing stock with an Budget sales for better estimation. 3. The type of budget that show the quantities of material required in budgeted production. Research and development Budget 4. The budget contains an estimate of all Cash or Financial direct labor cost required to produce the Budget budgeted products. 5. Budget that use machine load production department, overloading on plant and machinery. Master…arrow_forwardPrepare a Flexible Budget Performance Report Required: Using Exhibit 9–8 as your guide, prepare a flexible budget performance report that shows the company’s revenue and spending variance and activity variances for august. Exhibit 9–8 Performance Report Combining Activity Variances with Revenue and Spending Variancesarrow_forwardx Thomas Co. provides the following fixed budget data for the year: Sales (20,000 units) Cost of sales: Direct materials Direct labor Variable overhead Fixed overhead Gross profit Operating expenses: Fixed Variable Income from operations The company's actual activity for the Sales (21,000 units) Cost of goods sold: Direct materials Direct labor Variable overhead Fixed overhead Gross profit Operating expenses: Fixed Variable Income from operations F3 $200,000 160.000 60,000 80,000 $ 12,000 40.000 year follows: $231.000 168,000 73.500 77.500 12.000 39.500 F6 $600,000 500,000 $100,000 52.000 $ 48,000 $651,000 550.000 $101.000 51.500 $49.500 F7 F8arrow_forward
- Question Content Area Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Laghari Company makes and sells high-quality glare filters for microcomputer monitors. John Tanaka, controller, is responsible for preparing Laghari's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Laghari expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 36,000 34,500 39,000 38,600 Sales price per unit…arrow_forwardThe Bakery Department of Culbert Dessert Corporation has submitted the following forecast of fruit pies to be produced by quarter for the upcoming fiscal year. Units to be produced First Quarter 9,300 Second Third Quarter Quarter 12,300 10,300 Units to be produced Direct labour time per unit (hours) Total direct labour-hours needed Direct labour cost per hour Total direct labour cost Each unit requires 0.40 direct labour-hours, and direct labour-hour workers are paid $9.00 per hour. In addition, the variable manufacturing overhead rate is $1.00 per direct labour-hour. The fixed manufacturing overhead is $26,250 per quarter. The only non-cash element of manufacturing overhead is depreciation, which is $7,650 per quarter. Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced. Fourth Quarter 14,300 Culbert…arrow_forwardPuget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($400.00g) Expenses: Wages and salaries ($11,100+ $124.00g) Supplies ($4.00g) Equipment rental ($2,300+ $24.00g) Insurance ($3,800) Miscellaneous ($500+ $1.48q) Total expenses Net operating income During May, the company's actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. Note: Round your answers to the nearest whole number. 250 $ 100,000 42,100 1,000 8,300 3,800 870 56,070 $ 43,930arrow_forward
- Question Content Area Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 35,600 34,600 40,400 39,600 Sales price per…arrow_forwardQuestion Content Area Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 35,600 34,600 40,400 39,600 Sales price per…arrow_forwardQuestion Content Area Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 35,600 34,600 40,400 39,600 Sales price per…arrow_forward
- this is actually a budgeting lesson. Beginning inventory 4.000 unit Ending inventory 3.500 unit The lack will be allocated to the 5 months (Jan, Feb, March, April dan May). Arrange production budget with a policy that accentuate production stability!arrow_forwardQ.Prepare the Direct material usage budget for Aprilarrow_forward3 ok t ances Required: Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.) Budgeted Gross Margin Budgeted Net Operating Income IGUANA, INC. Budgeted Income Statement For the Quarter Ending June 1 April May June 2nd Quarter Totalarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,