1.
Concept Introduction:
Flexible Budget: The budget made to recognize the difference between fixed, semi-variable, and variable costs in accordance with the change in the level of activity attained is stated as a flexible budget. In order to prepare flexible costs, the first essential step is to segregate the cost into three categories; fixed costs, semi-variable, and variable costs. Fixed cost remains the same irrespective of the activity level. Variable cost and semi-variable changes as per the change in the activity level.
To prepare: A flexible budget report.
2.
Concept Introduction:
Flexible Budget: The budget made to recognize the difference between fixed, semi-variable, and variable costs in accordance with the change in the level of activity attained is stated as a flexible budget. In order to prepare flexible costs, the first essential step is to segregate the cost into three categories; fixed costs, semi-variable, and variable costs. Fixed cost remains the same irrespective of the activity level. Variable cost and semi-variable changes as per the change in the activity level.
To evaluate: Whether the bank variance reports should be investigated or not.
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MANAGERIAL ACCOUNTING (LOOSE) W/CONNECT
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- ackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors- home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House - keeping Revenues $ 929,000 $ 268, 000 $ 408,000 $ 253,000 Variable expenses 481,000 115,000 209,000 157,000 Contribution margin 448,000 153,000 199,000 96,000 Fixed expenses: Depreciation 69,000 8,300 40, 500 20, 200 Liability insurance 43,200 20, 300 7,600 15,300 Program administrators' salaries 114,600 40,700 38,400 35, 500 General administrative overhead *185,800 53, 600 81, 600 50, 600 Total fixed expenses 412,600 122,900 168, 100 121,600 Net operating income (loss) $ 35, 400 $ 30,100 $ 30,900 $ (25,600) * Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers…arrow_forwardJackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 923,000 $ 265,000 $ 405,000 $ 253,000 Variable expenses 470,000 111,000 202,000 157,000 Contribution margin 453,000 154,000 203,000 96,000 Fixed expenses: Depreciation 69,200 8,200 40,400 20,600 Liability insurance 43,800 20,300 7,600 15,900 Program administrators’ salaries 116,000 40,900 38,200 36,900 General administrative overhead* 184,600 53,000 81,000 50,600 Total fixed expenses 413,600 122,400 167,200 124,000 Net operating income (loss) $ 39,400 $ 31,600 $ 35,800 $ (28,000) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior…arrow_forwardRihanna’s nonprofit pledged $5 million to address the needs of families impacted by the pandemic, making her one of the first celebrities to throw their financial weight into the crisis. So far, her commitments include $2 million partnerships with Jay-Z’s Shawn Carter Foundation and Jack Dorsey, and an effort to get tests and supplies to ICUs in Haiti and Malawi. Voted one of the top leaders briefly to discuss the impact that they have made within their respective fields. What type of leadership style did they show and why? What leadership qualities do these leaders have that you would want to develop?arrow_forward
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