Actual Results | Flexible Budget Variance | Flexible Budget | Sales Volume Variance | Static Budget | |||
Unit sales | 3100 | 0 | Not Applicable | 3100 | 100 | F | 3000 |
Sales | (3100*$859)= $2662900 | (2507900-2662900)= 155000 | F | (3100*$809)= $2507900 | (2427000-2507900)= 80900 | F | (3000*$809)= $2427000 |
Less: Variable expenses | |||||||
Direct materials | 1036300 | (1047800-1036300)= 11500 | F | (3100*$338)= 1047800 | (1014000-1047800)= 33800 | U | (3000*$338)= 1014000 |
Direct labor | 453800 | (480500-453800)= 26700 | F | (3100*$155)= 480500 | (465000-480500)= 15500 | U | (3000*$155)= 465000 |
Variable overhead | 399400 | (387500-399400)= 11900 | U | ($35+30+60)*3100= 387500 | (375000-387500)= 12500 | U | ($35+30+60)*3000= 375000 |
Total variable expenses | (1889500) | 26300 | F | (1915800) | 61800 | U | (1854000) |
Contribution margin | 773400 | 181300 | F | 592100 | 19100 | F | 573000 |
Fixed overhead | (120870) | (113570-120870)= 7300 | U | (113570) | 0 | Not Applicable | (113570) |
Net operating income | $652530 | 174000 | F | $478530 | 19100 | F | $459430 |
Fixed overhead of flexible and static budget= $18610+39800+25870+29290= $113570
CALCULATOR PRINTER VERSION BACK NEXT Exercise 6-5 Bonita manufactures aluminum canoes. In planning for the coming...
Exercise 6-5 Bonita manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 cances, 3,000 canoes, and 3,500 cances. Canoes sell for $809 each. The standard variable cost information for a canoe is as follows. $338 155 Direct materials Direct labor Variable overhead Utilities Indirect material Indirect labor Tots 35 30 60 wy 5518 Annual fixed overhead cost is expected to be Maintenance Depreciation Insurance Rent Total $ 18,510 39,800 25,870...
Return to Blackboard Davis, Managerial Accounting, 3e Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Vaughn manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sell for $809 each. The standard variable cost information for a canoe is as follows. RCES ORK $325 195 Direct materials Direct labor Variable overhead Utilities Indirect material Indirect labor Total 35 60 $645 tudy. Annual fixed overhead...
Exercise 6-5 Sunland manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sell for $806 each. The standard variable cost information for a canoe is as follows. Direct materials Direct labor Variable overhead $304 198 Utilities 35 Indirect material 30 Indirect labor 60 Total $627 Annual fixed overhead cost is expected to be: Maintenance $ 18,260 Depreciation 38,700 Insurance 26,600 Rent 29,980 Total...
Exercise 6-4 Crane manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,640 canoes, 3,010 canoes, and 3,600 canoes. Canoes sell for $970 each. The standard variable cost information for a canoe is as follows. $285 111 Direct materials Direct labor Variable overhead Utilities Indirect material Indirect labor Total 35 30 60 $521 Annual fixed overhead cost is expected to be: Maintenance $ 20,700 Depreciation 41,700 Insurance 28,000 Rent 31,810 Total...
CALCULATOR PRINTER VERSION BACK NEXT Exercise 188 Cadiz Co. uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $300,000 to $360,000. Variable costs and their percentage relationships to sales are: Sales commissions 5% Advertising Traveling 4% Delivery 1% Fixed selling expenses consist of sales salaries $40,000 and depreciation on delivery equipment $10,000. The actual selling expenses incurred in February, 2019, by Cadiz are as follows: Sales commissions $17,200 12,000 Advertising 23,700 Traveling 2,400 Delivery...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 20-6 Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached...
CALCULATOR PRINTER VERSION BACK NEXT Exercise 6-6 Crane WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,130 pounds of plastic to use in its dive masks, at a cost of $5,676. The standard price for the plastic is $1.539 per pound. The company actually used 4,090 pounds of the plastic to produce 16.900 dive masks Calculate Crane's direct materials price variance for the month. (Round answer to enter for the amounts.) decimal places, e.g. 5,275. If variance is...
CALCULATOR PRINTER VERSION BACK Exercise 186 Webb, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials 2.50 Maintenance .50 Utilities .30 Fixed overhead costs per month are: Supervision tudy Insurance Property taxes Depreciation $1,200 400 600 1,800 The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of August, 2019, the...
CALCULATOR PRINTER VERSION 4 BACK NEXT Exercise 199 (Part Level Submission) A recent accounting graduate from Marvel State University evaluated the operating performance of Fanning Company's four divisions. The following presentation was made to Fanning's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by $60,000. (See analysis below.) Southern Division Total Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income Divisions $ 2,000,000...
ment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 20-03 Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (336,000 units) $4,377,000 Cost of goods sold 2,592,000 Gross profit 1,785,000 Operating expenses 840,000 Net Income $945.000 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% Variable and 20% fixed. In September, Moonbeam receives a special order for 21,600...