UrLink Company is a newly formed company specializing in high-speed Internet service for home and business....
UrLink Company is a newly formed company specializing in
high-speed Internet service for home and business. The owner, Lenny
Kirkland, had divided the company into two segments: Home Internet
Service and Business Internet Service. Each segment is run by its
own supervisor, while basic selling and administrative services are
shared by both segments.
Lenny has asked you to help him create a performance reporting
system that will allow him to measure each segment’s performance in
terms of its profitability. To that end, the following information
has been collected on the Home Internet Service segment for the
first quarter of 2017.
|
Budgeted |
Actual |
|||
| Service revenue | $25,000 | $26,700 | ||
| Allocated portion of: | ||||
| Building depreciation | 11,400 | 11,400 | ||
| Advertising | 5,300 | 4,600 | ||
| Billing | 3,700 | 3,100 | ||
| Property taxes | 1,100 | 1,100 | ||
| Material and supplies | 1,400 | 1,300 | ||
| Supervisory salaries | 9,500 | 9,400 | ||
| Insurance | 3,800 | 3,700 | ||
| Wages | 3,200 | 3,300 | ||
| Gas and oil | 2,300 | 3,500 | ||
| Equipment depreciation | 1,400 | 1,100 |
Prepare a responsibility report for the first quarter of 2017 for
the Home Internet Service segment.
|
URLINK COMPANY |
|||||||
|
Difference |
|||||||
|
|
|
Favorable |
|||||
|
Controllable MarginContribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginContribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
$ |
$ |
$ |
UnfavorableFavorableNeither Favorable nor Unfavorable FavorableUnfavorableNeither Favorable nor Unfavorable |
|||
|
Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
|||||||
|
Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
Neither Favorable nor UnfavorableFavorableUnfavorable FavorableUnfavorableNeither Favorable nor Unfavorable |
||||||
|
Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
FavorableNeither Favorable nor UnfavorableUnfavorable UnfavorableNeither Favorable nor UnfavorableFavorable |
||||||
|
Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
FavorableNeither Favorable nor UnfavorableUnfavorable UnfavorableNeither Favorable nor UnfavorableFavorable |
||||||
|
Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
FavorableUnfavorableNeither Favorable nor Unfavorable UnfavorableNeither Favorable nor UnfavorableFavorable |
||||||
|
Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
UnfavorableNeither Favorable nor UnfavorableFavorable FavorableUnfavorableNeither Favorable nor Unfavorable |
||||||
|
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
|||||||
|
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
UnfavorableFavorableNeither Favorable nor Unfavorable FavorableUnfavorableNeither Favorable nor Unfavorable |
||||||
|
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
UnfavorableFavorableNeither Favorable nor Unfavorable FavorableUnfavorableNeither Favorable nor Unfavorable |
||||||
|
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
Neither Favorable nor UnfavorableFavorableUnfavorable FavorableUnfavorableNeither Favorable nor Unfavorable |
||||||
|
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
UnfavorableNeither Favorable nor UnfavorableFavorable FavorableUnfavorableNeither Favorable nor Unfavorable |
||||||
|
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes |
$ |
$ |
$ |
Neither Favorable nor UnfavorableFavorableUnfavorable |
|||
Homework Answers
| Budget | Actual | variance | |
| service revenue | 25000 | 26700 | 1700 F |
| variable costs | |||
| material and supplies | 1400 | 1300 | 100 F |
| wages | 3200 | 3300 | 100 U |
| gad and oil | 2300 | 3500 | 1200 U |
| Total variable costs | 6900 | 8100 | 1200U |
| contribution margin | 18100[25000-6900] | 18600[26700-8100] | 500[1700-1200] |
| controllable fixed cost | |||
| supervisor salaries | 9500 | 9400 | 100 F |
| insurance | 3800 | 3700 | 100 F |
| equipment depreciation | 1400 | 1100 | 300 F |
| total controllable fixed cost | 14700 | 14200 | 500 F |
| controllable margin | 3400[18100-14700] | 4400[18600-14200] | 1000[500+500] |
MARGIN/REVENUE ACTUAL > BUDGETED VARIANCE = FAVORABLE F
MARGIN / REVENUE ACTUAL < BUDGETED VARIANCE = UNFAVORABLE
COST ACTUAL< BUDGETED = FAVORABLE VARIANCE
COST ACTUAL> BUDGETED = UNFAVORABLE VARIANCE
Add Answer to:
UrLink Company is a newly formed company specializing in
high-speed Internet service for home and business....
Culver Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, L...
Culver Company is a newly formed company specializing in
high-speed Internet service for home and business. The owner, Lenny
Kirkland, had divided the company into two segments: Home Internet
Service and Business Internet Service. Each segment is run by its
own supervisor, while basic selling and administrative services are
shared by both segments.
Lenny has asked you to help him create a performance reporting
system that will allow him to measure each segment’s performance in
terms of its profitability. To...
The actual selling expenses incurred in March 2017 by Novak Company are as follows. Variable Expenses...
The actual selling expenses incurred in March 2017 by Novak
Company are as follows.
Variable Expenses
Fixed Expenses
Sales commissions
$14,688
Sales salaries
$34,600
Advertising
10,476
Depreciation
6,600
Travel
6,924
Insurance
2,000
Delivery
3,552
(a)
Prepare a flexible budget performance report for March, assuming
that March sales were $173,100. Variable costs and their percentage
relationship to sales are sales commissions 8%, advertising 6%,
traveling 4%, and delivery 2%. Fixed selling expenses will consist
of sales salaries $34,600, Depreciation on delivery...
The actual selling expenses incurred in March 2017 by Novak Company are as follows. Variable Expenses...
The actual selling expenses incurred in March 2017 by Novak
Company are as follows.
Variable Expenses
Fixed Expenses
Sales commissions
$14,688
Sales salaries
$34,600
Advertising
10,476
Depreciation
6,600
Travel
6,924
Insurance
2,000
Delivery
3,552
(a)
Prepare a flexible budget performance report for March, assuming
that March sales were $173,100. Variable costs and their percentage
relationship to sales are sales commissions 8%, advertising 6%,
traveling 4%, and delivery 2%. Fixed selling expenses will consist
of sales salaries $34,600, Depreciation on delivery...
Sarasota Company Clothing Department Budget Report For the Month Ended October 31, 2017 Difference Bu...
Sarasota Company
Clothing Department
Budget Report
For the Month Ended October 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Sales in units
8,500
10,000
1,500
Favorable
Variable expenses
Sales commissions
$2,380
$2,600
$220
Unfavorable
Advertising expense
850
900
50
Unfavorable
Travel expense
3,910
3,500
410
Favorable
Free samples given out
1,615
1,100
515
Favorable
Total variable
8,755
8,100
655
Favorable
Fixed expenses
Rent
1,700
1,700
–0–
Neither Favorable nor Unfavorable
Sales salaries
1,000
1,000
–0–
Neither Favorable...
Lewis Company’s standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $13.80 per hour. Du...
Lewis Company’s standard labor cost of producing one unit of
Product DD is 3.20 hours at the rate of $13.80 per hour. During
August, 41,200 hours of labor are incurred at a cost of $14.00 per
hour to produce 12,600 units of Product DD.
(a)
Compute the total labor variance.
Total labor variance
$
UnfavorableNeither favorable nor unfavorableFavorable
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Compute the labor price and quantity variances.
Labor price variance
$
UnfavorableFavorableNeither favorable nor unfavorable
Labor quantity variance
$
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The standard cost of Product B manufactured by Pharrell Company includes 2.7 units of direct materials...
The standard cost of Product B manufactured by Pharrell Company includes 2.7 units of direct materials at $6.20 per unit. During June, 26,700 units of direct materials are purchased at a cost of $6.05 per unit, and 26,700 units of direct materials are used to produce 9,800 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance $enter a dollar amount select an option Neither favorable nor unfavorableUnfavorableFavorable Materials price variance...
Torres Company accumulates the following summary data for the year ending December 31, 2020, for its...
Torres Company accumulates the following summary data for the
year ending December 31, 2020, for its Water Division, which it
operates as a profit center: sales—$2,021,500 budget, $2,183,800
actual; variable costs—$1,001,600 budget, $1,044,200 actual; and
controllable fixed costs—$299,100 budget, $302,200 actual.
Prepare a responsibility report for the Water Division for the year
ending December 31, 2020.
TORRES COMPANY
Water Division
Responsibility Report
For the Year Ended December 31, 2020
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Select an...
During March 2020, Sheffield Tool & Die Company worked on four jobs. A review of direct...
During March 2020, Sheffield Tool & Die Company worked on
four jobs. A review of direct labor costs reveals the following
summary data.
Actual
Standard
Job Number
Hours
Costs
Hours
Costs
Total Variance
A257
210
$4,200
218
$4,360
$160
F
A258
440
10,120
429
8,580
1,540
U
A259
300
6,450
298
5,960
490
U
A260
120
2,280
112
2,240
40
F
Total variance
$1,910
U
Analysis reveals that Job A257 was a repeat job. Job A258 was a
rush order...
Exercise 10-15 (Video) Horatio Inc. has three divisions which are operated as profit centers. Actual operating...
Exercise 10-15 (Video)
Horatio Inc. has three divisions which are operated as profit
centers. Actual operating data for the divisions listed
alphabetically are as follows.
Compute the missing amounts.
Operating Data
Women’s Shoes
Men’s Shoes
Children’s Shoes
Contribution margin
$302,400
$
(3)
$201,600
Controllable fixed costs
112,000
(4)
(5)
Controllable margin
(1)
100,800
106,400
Sales
672,000
504,000
(6)
Variable costs
(2)
358,400
280,000
Prepare a responsibility report for the Women’s Shoes Division
assuming (1) the data are for the month...
Horatio Inc. has three divisions which are operated as profit centers. Actual operating data for the...
Horatio Inc. has three divisions which are operated as profit
centers. Actual operating data for the divisions listed
alphabetically are as follows.
Compute the missing amounts.
Operating Data
Women’s Shoes
Men’s Shoes
Children’s Shoes
Contribution margin
$363,420
$
(3)
$242,280
Controllable fixed costs
134,600
(4)
(5)
Controllable margin
(1)
121,140
127,870
Sales
807,600
605,700
(6)
Variable costs
(2)
430,720
336,500
Prepare a responsibility report for the Women’s Shoes Division
assuming (1) the data are for the month ended June 30,...
Culver Company is a newly formed company specializing in
high-speed Internet service for home and business. The owner, Lenny
Kirkland, had divided the company into two segments: Home Internet
Service and Business Internet Service. Each segment is run by its
own supervisor, while basic selling and administrative services are
shared by both segments.
Lenny has asked you to help him create a performance reporting
system that will allow him to measure each segment’s performance in
terms of its profitability. To...
The actual selling expenses incurred in March 2017 by Novak
Company are as follows.
Variable Expenses
Fixed Expenses
Sales commissions
$14,688
Sales salaries
$34,600
Advertising
10,476
Depreciation
6,600
Travel
6,924
Insurance
2,000
Delivery
3,552
(a)
Prepare a flexible budget performance report for March, assuming
that March sales were $173,100. Variable costs and their percentage
relationship to sales are sales commissions 8%, advertising 6%,
traveling 4%, and delivery 2%. Fixed selling expenses will consist
of sales salaries $34,600, Depreciation on delivery...
The actual selling expenses incurred in March 2017 by Novak
Company are as follows.
Variable Expenses
Fixed Expenses
Sales commissions
$14,688
Sales salaries
$34,600
Advertising
10,476
Depreciation
6,600
Travel
6,924
Insurance
2,000
Delivery
3,552
(a)
Prepare a flexible budget performance report for March, assuming
that March sales were $173,100. Variable costs and their percentage
relationship to sales are sales commissions 8%, advertising 6%,
traveling 4%, and delivery 2%. Fixed selling expenses will consist
of sales salaries $34,600, Depreciation on delivery...
Sarasota Company
Clothing Department
Budget Report
For the Month Ended October 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Sales in units
8,500
10,000
1,500
Favorable
Variable expenses
Sales commissions
$2,380
$2,600
$220
Unfavorable
Advertising expense
850
900
50
Unfavorable
Travel expense
3,910
3,500
410
Favorable
Free samples given out
1,615
1,100
515
Favorable
Total variable
8,755
8,100
655
Favorable
Fixed expenses
Rent
1,700
1,700
–0–
Neither Favorable nor Unfavorable
Sales salaries
1,000
1,000
–0–
Neither Favorable...
Lewis Company’s standard labor cost of producing one unit of
Product DD is 3.20 hours at the rate of $13.80 per hour. During
August, 41,200 hours of labor are incurred at a cost of $14.00 per
hour to produce 12,600 units of Product DD.
(a)
Compute the total labor variance.
Total labor variance
$
UnfavorableNeither favorable nor unfavorableFavorable
(b)
Compute the labor price and quantity variances.
Labor price variance
$
UnfavorableFavorableNeither favorable nor unfavorable
Labor quantity variance
$
UnfavorableNeither favorable...
Torres Company accumulates the following summary data for the
year ending December 31, 2020, for its Water Division, which it
operates as a profit center: sales—$2,021,500 budget, $2,183,800
actual; variable costs—$1,001,600 budget, $1,044,200 actual; and
controllable fixed costs—$299,100 budget, $302,200 actual.
Prepare a responsibility report for the Water Division for the year
ending December 31, 2020.
TORRES COMPANY
Water Division
Responsibility Report
For the Year Ended December 31, 2020
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Select an...
During March 2020, Sheffield Tool & Die Company worked on
four jobs. A review of direct labor costs reveals the following
summary data.
Actual
Standard
Job Number
Hours
Costs
Hours
Costs
Total Variance
A257
210
$4,200
218
$4,360
$160
F
A258
440
10,120
429
8,580
1,540
U
A259
300
6,450
298
5,960
490
U
A260
120
2,280
112
2,240
40
F
Total variance
$1,910
U
Analysis reveals that Job A257 was a repeat job. Job A258 was a
rush order...
Exercise 10-15 (Video)
Horatio Inc. has three divisions which are operated as profit
centers. Actual operating data for the divisions listed
alphabetically are as follows.
Compute the missing amounts.
Operating Data
Women’s Shoes
Men’s Shoes
Children’s Shoes
Contribution margin
$302,400
$
(3)
$201,600
Controllable fixed costs
112,000
(4)
(5)
Controllable margin
(1)
100,800
106,400
Sales
672,000
504,000
(6)
Variable costs
(2)
358,400
280,000
Prepare a responsibility report for the Women’s Shoes Division
assuming (1) the data are for the month...
Horatio Inc. has three divisions which are operated as profit
centers. Actual operating data for the divisions listed
alphabetically are as follows.
Compute the missing amounts.
Operating Data
Women’s Shoes
Men’s Shoes
Children’s Shoes
Contribution margin
$363,420
$
(3)
$242,280
Controllable fixed costs
134,600
(4)
(5)
Controllable margin
(1)
121,140
127,870
Sales
807,600
605,700
(6)
Variable costs
(2)
430,720
336,500
Prepare a responsibility report for the Women’s Shoes Division
assuming (1) the data are for the month ended June 30,...
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