GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
16th Edition
ISBN: 9781260088458
Author: Ray H Garrison
Publisher: McGraw-Hill Education
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Chapter 9, Problem 19P
PROBLEM 9−19: Flexible Budget Performance Reports; Working BackwardsLO 9−1, LO 9−2, 9−3, 9-4
Ray Company provided the following excerpts from its Production Departments flexible budget performance report:
Required; Complete the Production Department’s Flexible Budget Performance Report by filling in all the question marks.
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Exercise 9-16 (Static) Flexible Budgets in a Cost Center [LO9-1, LO9-2]
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month:
Cost Formulas
Direct labor
$15.80q
Indirect labor
$8,200 + $1.60q
Utilities
$6,400 + $0.80q
Supplies
$1,100 + $0.40q
Equipment depreciation
$23,000 + $3.70q
Factory rent
$8,400
Property taxes
$2,100
Factory administration
$11,700 + $1.90q
The Production Department planned to work 8,000 labor-hours in March; however, it actually worked 8,400 labor-hours during the month. Its actual costs incurred in March are listed below:
Actual Cost Incurred in March
Direct labor
$ 134,730
Indirect labor
$ 19,860
Utilities
$ 14,570
Supplies
$ 4,980
Equipment…
Practice : (see attachemnt)
please address parts B, C, D
please show any calculations for reference
a) What is meant by the term flexible budget? What role do flexible budgets play in evaluating performance?
The cost accountant for Bradley, Inc., prepared the following monthly performance report relating to the Finishing Department:
Budgeted Production Actual Production
number units: 6000 units 6500 units
Direct materials: $90,000 $99,600
Direct labor: $48,000 $55,200
Variable Manufacturing Overhead: $6,000 $9,000
Fixed Manufacturing Overhead: $66,000 $64,200
What would the flexible budget amounts be for each of the following:
Direct materials
Direct labor
Variable manufacturing overhead
Compute the…
E 8-16 Determining Budgeted Overhead The overhead application rate for a company is $10 per unit, made up of $6 per unit of fixed overhead and $4 per unit of variable over- head. Normal capacity is 10,000 units. In one month there was a favorable flexible budget variance of $2,500. Actual overhead for the month was $110,000 and actual units produced were 13,125. Based on this information, determine the amount of the budgeted overhead for the actual level of production.
Use this format:
Chapter 9 Solutions
GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
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 - What is a revenue variance and what does it mean?Ch. 9 - 9-7 What is a spending variance and what does it...Ch. 9 - 9-8 What does a flexible budget performance report...Ch. 9 - How does a flexible budget based on two cost...Ch. 9 - 9-10 What assumption is implicitly made about cost...
Ch. 9 - 9-11 What assumption is implicitly made about cost...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 - EXERCISE 9-6 Critique a Variance ReportLO9-6 The...Ch. 9 - Prob. 7ECh. 9 - EXERCISE 9-8 Flexible Budgets and Activity...Ch. 9 - Fixed Cost...Ch. 9 - ...Ch. 9 -
EXERCISE 9-11 Flexible Budget L09-1
Refer to the...Ch. 9 - EXERCISE 9-12 Activity Variances LO9-2
Refer to...Ch. 9 - ...Ch. 9 -
EXERCISE 9-14 Prepare a Flexible Budget...Ch. 9 - Prob. 15ECh. 9 -
EXERCISE 9-16 Flexible Budgets and Revenue and...Ch. 9 - EXERCISE 9-17 Flexible Budget Performance Report...Ch. 9 - Prob. 18ECh. 9 - PROBLEM 919: Flexible Budget Performance Reports;...Ch. 9 -
PROBLEM 9-20 Activity and Spending Variances...Ch. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 -
PROBLEM 9-24 Critiquing a Report; Preparing a...Ch. 9 -
PROBLEM 9-25 Critiquing a Variance Report;...Ch. 9 - PROBLEM 9-26 Critiquing a Cost Report; Preparing a...Ch. 9 - Prob. 27CCh. 9 - ...Ch. 9 - Prob. 29C
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- Budget performance reports for cost centers Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below. a.Complete the budget performance reports by determining the correct amounts for the lettered spaces. b.Compose a memo to Jeff Kitchens, president of Meridian Company, explaining the performance of the Production Division for June.arrow_forwardFlexible Budget with Different Levels of Production Balboa Company budgeted the following amounts: Required: Prepare a flexible budget for 4,000 units, 4,500 units, and 5,000 units.arrow_forwardFlexible Budget for Various Levels of Production Budgeted amounts for the year: Required: 1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units. 2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.) What happens to unit cost as the number of units produced increases?arrow_forward
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