MANAGERIAL ACCOUNTING-CONNECT >CUSTOM<
17th Edition
ISBN: 9781265133627
Author: Garrison
Publisher: MCG
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Chapter 9, Problem 16E
To determine
Concept Introduction:
Flexible budget performance report: This is a report that 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.
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Students have asked these similar questions
Scenario
The Francis Corporation operates two service and two producing departments in its production of go carts. The budgeted overhead
costs directly associated with the departments and other pertinent data for an upcoming month are as follows:
Overhead Costs
Machine Hours
Number of Employees
19.67 (rounded)
16.67 (rounded)
3.00
14.74 (rounded)
Service & Production Departments Data
Service Departments
Maintenance
$144,000
20
O 15.87
Personnel
$80,000
16
Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Assume the Assembly department uses direct labor hours to allocate its cost is overhead costs. For the upcoming month, the
estimated direct labor hours is estimated is 19,200 hours.
Question
What will be the predetermined overhead rate for the Assembly department for the upcoming month?
Production Departments
Tooling
$280,000
30,000
60
Assembly
$320,000
20,000
100
ABC Corporation has prepared the following overhead budget for next month.
Activity level
Variable overhead costs:
Supplies
Indirect labor
Fixed overhead costs:
Supervision
Utilities
Depreciation
Total overhead cost
3,700 machine-hours
$ 21,090
35,520
18,100
7,100
8,100
$ 89,910
The company's variable overhead costs are driven by machine-hours.
What would be the total budgeted overhead cost for next month if the activity level is 3,600 machine-hours rather
than 3,700 machine-hours? (Round your intermediate calculations to 2 decimal places.)
Cost Estimation & CVP
It is budget season and Margo, Inc is planning for next year and requires a
breakdown of the factory overhead cost into the fixed and variable
elements. The following data on the OH cost and machine hours are
available for the past six months:
OH Cost Machine Hours
$ 23,910
$ 23,397
$24,153
$23,964
$ 23,732
$ 23,559
$ 142,715
Month
January
February
March
April
May
June
Total
1,800
1,230
2,070
1,860
1,602
1,410
9,972
Required:
1. Assume that Mago uses the high-low method of analysis, determine the
variable OH cost per machine hour and monthly fixed cost
Additional Sales & Cost information for Margo's
Sales Price
Machine Hours Per unit
Direct Labor Hours Per Unit
Direct labor cost per unit
Direct Material cost per unit
2$
75.30
2
2.5
2$
$
40.00
18.50
2. How many units do they need to sell to breakeven in one month
3. How many units do they need to sell to earn a pre-tax profit of $52,410 in one month
4. Create a contribution margin income statement for the pre-tax…
Chapter 9 Solutions
MANAGERIAL ACCOUNTING-CONNECT >CUSTOM<
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
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