op managers of Rouse Industries predicted 2025 sales of 14,900 units of its product at a unit price of $10.00. Actual sales for the year were 14.000 units at $13 00 each Variable costs were budgeted at $3 60 per unit, and actual variable costs were $3.70 per unit. Actual costs of $49,000 exceeded budgeted fixed costs by $2,500 Prepare Rouse Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances (Enter a 0 for any zero balances Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter For any 50 variances, leave the Favorable (FYUnfavorable (U) input field blank) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit Rouse Industries Flexible Budget Performance Report For the Year Ended December 31, 2025 3 Actual Results 2 (1)-(3) Flexible Budget Variance Flexible Budget 4 (3)-(5) Sales Volume Variance 5 CODED Static Budget

op managers of Rouse Industries predicted 2025 sales of 14,900 units of its product at a unit price of $10.00. Actual sales for the year were 14.000 units at $13 00 each Variable costs were budgeted at $3 60 per unit, and actual variable costs were $3.70 per unit. Actual costs of $49,000 exceeded budgeted fixed costs by $2,500 Prepare Rouse Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances (Enter a 0 for any zero balances Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter For any 50 variances, leave the Favorable (FYUnfavorable (U) input field blank) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit Rouse Industries Flexible Budget Performance Report For the Year Ended December 31, 2025 3 Actual Results 2 (1)-(3) Flexible Budget Variance Flexible Budget 4 (3)-(5) Sales Volume Variance 5 CODED Static Budget

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 40P

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Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer to the information for Speedy Petes above. Assume that this information was used to construct the following formula for monthly delivery cost. TotalDeliveryCost=41,850+(12.00NumberofDeliveries) Required: Assume that 3,000 deliveries are budgeted for the following month of January. Use the total delivery cost formula for the following calculations: 1. Calculate total variable delivery cost for January. 2. Calculate total delivery cost for January.
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller prepared the following budgeted income statement for the coming year: Required: 1. What is Arbergs variable cost ratio? What is its contribution margin ratio? 2. Suppose Arbergs actual revenues are 30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arbergs expected margin of safety? 5. What is Arbergs margin of safety if sales revenue is 380,000?
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Refer to the information for Speedy Petes on the previous page. Coefficients shown by a regression program for Speedy Petes data are: Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of deliveries and the variable rate per delivery. 2. Construct the cost formula for total delivery cost. 3. Calculate the budgeted cost for next month, assuming that 3,000 deliveries are budgeted. (Note: Round answers to the nearest dollar.) Use the following information for Brief Exercises 3-26 through 3-29: Speedy Petes is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows:
Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.
Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales.
Top managers of Cole Industries predicted 2018 sales of 14,600 units of its product at a unit price of $7.00. Actual sales for the year were 14,000 units at $10.50 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $43,000 exceeded budgeted fixed costs by $4,500. Prepare Cole's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Cole Industries Flexible Budget Performance Report For the Year Ended December 31, 2018 1 2 3 4 5…
Top managers of Root Industries predicted 2024 sales of 14,700 units of its product at a unit price of $7.50. Actual sales for the year were 14,500 units at $9.50 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $5,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit 7.5 2.7 Root Industries Flexible Budget Performance Report For the Year Ended…
Top managers of White Industries predicted 2024 sales of 14,700 units of its product at a unit price of $8.00. Actual sales for the year were 14,000 units at $10.50 each Variable costs were budgeted at $2.40 per unit, and actual variable costs were $2.50 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed coats by $5,200. Prepare White's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year, First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any 50 variances, leave the Favorable (FyUnfavorable (U) input blank) Units Sales Revenue Vanable Costs Contribution Margin Budget Amounts Per Unit White Industries Flexible Budget Performance Report For the Year Ended December 31,…
Top managers of Root Industries predicted 2025 sales of 14,500 units of its product at a unit price of $9.50. Actual sales for the year were 14,300 units at $11.00 each. Variable costs were budgeted at $3.40 per unit, and actual variable costs were $3.50 per unit. Actual fixed costs of $44,000 exceeded budgeted fixed costs by $5,000 Prepare Root Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a 0 for any zero balances. Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. For any $0 variances, leave the Favorable (F)Unfavorable (U) input field blank.) Units Sales Revenue Variable Costs…
Top managers of Juda Industries predicted 2025 sales of 14,500 units of its product at a unit price of $10.00. Actual sales for the year were 14,300 units at $13.00 each. Variable costs were budgeted at $3.20 per unit, and actual variable costs were $3.30 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $2,000. Prepare Juda Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a 0 for any zero balances. Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input field blank.) Juda Industries Flexible Budget…