Homework Answers
Flexible budget is a budget prepared to make comparison between the flexible budget to actual budget. The difference is known as variance. The variance is favorable or unfavorable. The variance is favorable when the actual result is less than budgeted and the variance is unfavorable when actual result more than budgeted.
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80 + Reset The Valent Company uses flexible budgeting for cost control. Valenti produced 11,400 units...
The Valenti Company uses flexible budgeting for cost control. Valenti produced 11,500 units of product during...
The Valenti Company uses flexible budgeting for cost control. Valenti produced 11,500 units of product during October, incurring indirect material costs of $14,100. Valenti’s master budget reflected indirect material costs of $210,600 at a production volume of 156,000 units. What was the indirect material cost variance for October? Multiple Choice $1,500 favorable $1,425 favorable $3,450 favorable $1,500 unfavorable
the velocity company uses flexible budgeting for cost control. Velocity made 15,300 units of products during...
the velocity company uses flexible budgeting for cost control. Velocity made 15,300 units of products during March, incurring indirect material costs of $18,000. Its master budget reflected indirect material costs of $480,000 at a production volume of 320,000 units. What was the flexible budget variance for the indirect material costs in March? a. $3890 favorable b. $4,660 unfavorable c. $3,580 unfavorable d. $4,950 favorable
Assume that in October 2019 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 950 units...
Assume that in October 2019 the Schmidt Machinery Company
(Exhibit 14.1) manufactured and sold 950 units for $854 each.
During this month, the company incurred $380,000 total variable
costs and $181,900 total fixed costs. The master (static) budget
data for the month are as given in Exhibit 14.1.
Required:
1. Prepare a flexible budget for the production and sale of 950
units.
2. Compute for October 2019:
a. The sales volume variance, in terms of operating income.
Indicate whether this...
Question 17 1 pts Acme Manufacturing uses flexible budgeting. Fixed Production Costs 30,000 Variable Production Costs...
Question 17 1 pts Acme Manufacturing uses flexible budgeting. Fixed Production Costs 30,000 Variable Production Costs 120,000 Expected Output in Units 100,000 Actual Output in Units 91,857 Actual Production Costs 142,490 What is the Production Cost budget variance? (for this formula generated problem enter a favorable variance as a positive number (e.g. 400) and a negative variance as a negative number (e.g. -400). Round to whole amounts, no decimals) This problem is a variant of the question in the Self-test...
As part of its comprehensive planning and control system, Mopar Company uses a master budget and...
As part of its comprehensive planning and control system, Mopar
Company uses a master budget and subsequent variance analysis. You
are given the following information that pertains to the company’s
only product, XL-10, for the month of December.
Required:
1. Using text Exhibit 14.4 as a guide, complete the missing
parts of the following profit report for December.
2. Based on your completed profit report, determine the dollar
amount, and label (Favorable or Unfavorable) each of the following
variances for...
Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith allocates...
Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: (Click the icon to view the selected data.) Read the requirements Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) 980 Smith Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue...
Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget...
Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: • Four welding units, with a lease cost of $13,000 per year per unit Six welding employees each paid a salary of $57,000 per year (A total of 12,000 welding hours are supplied by the six workers.) • Welding supplies: $400 per job • Welding hours: 4 hours used per job During...
3 Problem 1143 (#1 and 2 only) Flexible Budgeting: Variances; Impact on Behavior 4 DATA INPUT...
3 Problem 1143 (#1 and 2 only) Flexible Budgeting: Variances; Impact on Behavior 4 DATA INPUT Lawnmate Company Operating Results For the Month of May 6 8 9 10 Units sold Actual Master Budget 5,000 Variance 4,800 200 U $ 1,200,000 760,000 S 440,000 180,000 120,000 S 140,000 $ 1,152,000 780,000 S 372,000 180,000 115,000 S 77,000 $ 48,000 U 20,000) U $ 68,000 U 12 Revenue 13 Variable cost 14 Contribution margin 15 Fixed overhead 16 Fixed general and...
b. In September, 65,000 units were produced. Prepare the budget report using flexible budget data, assuming...
b. In September, 65,000 units were produced. Prepare the budget
report using flexible budget data, assuming (1) each variable cost
was 10 % higher than its actual cost in August, and (2) fixed costs
were the same in September as in August. (List variable
costs before fixed costs.)
*Problem 14-3A (Part Level Submission) Sarasota Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. SARASOTA COMPANY Budget Report Assembling Department For...
Preston’s Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Preston allocates...
Preston’s Recliners manufactures leather recliners and uses
flexible budgeting and a standard cost system. Preston allocates
overhead based on yards of direct materials.
Please prepare a flexible budget based on the actual number of
recliners sold & then (2) Compute the cost variance and the
efficiency variance for direct materials and for direct labor. For
manufacturing overhead, compute the variable overhead cost,
variable overhead efficiency, fixed overhead cost, and fixed
overhead volume variances. Round to the nearest dollar.
Have Preston's...
Assume that in October 2019 the Schmidt Machinery Company
(Exhibit 14.1) manufactured and sold 950 units for $854 each.
During this month, the company incurred $380,000 total variable
costs and $181,900 total fixed costs. The master (static) budget
data for the month are as given in Exhibit 14.1.
Required:
1. Prepare a flexible budget for the production and sale of 950
units.
2. Compute for October 2019:
a. The sales volume variance, in terms of operating income.
Indicate whether this...
Question 17 1 pts Acme Manufacturing uses flexible budgeting. Fixed Production Costs 30,000 Variable Production Costs 120,000 Expected Output in Units 100,000 Actual Output in Units 91,857 Actual Production Costs 142,490 What is the Production Cost budget variance? (for this formula generated problem enter a favorable variance as a positive number (e.g. 400) and a negative variance as a negative number (e.g. -400). Round to whole amounts, no decimals) This problem is a variant of the question in the Self-test...
As part of its comprehensive planning and control system, Mopar
Company uses a master budget and subsequent variance analysis. You
are given the following information that pertains to the company’s
only product, XL-10, for the month of December.
Required:
1. Using text Exhibit 14.4 as a guide, complete the missing
parts of the following profit report for December.
2. Based on your completed profit report, determine the dollar
amount, and label (Favorable or Unfavorable) each of the following
variances for...
Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: (Click the icon to view the selected data.) Read the requirements Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) 980 Smith Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue...
Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: • Four welding units, with a lease cost of $13,000 per year per unit Six welding employees each paid a salary of $57,000 per year (A total of 12,000 welding hours are supplied by the six workers.) • Welding supplies: $400 per job • Welding hours: 4 hours used per job During...
3 Problem 1143 (#1 and 2 only) Flexible Budgeting: Variances; Impact on Behavior 4 DATA INPUT Lawnmate Company Operating Results For the Month of May 6 8 9 10 Units sold Actual Master Budget 5,000 Variance 4,800 200 U $ 1,200,000 760,000 S 440,000 180,000 120,000 S 140,000 $ 1,152,000 780,000 S 372,000 180,000 115,000 S 77,000 $ 48,000 U 20,000) U $ 68,000 U 12 Revenue 13 Variable cost 14 Contribution margin 15 Fixed overhead 16 Fixed general and...
b. In September, 65,000 units were produced. Prepare the budget
report using flexible budget data, assuming (1) each variable cost
was 10 % higher than its actual cost in August, and (2) fixed costs
were the same in September as in August. (List variable
costs before fixed costs.)
*Problem 14-3A (Part Level Submission) Sarasota Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. SARASOTA COMPANY Budget Report Assembling Department For...
Preston’s Recliners manufactures leather recliners and uses
flexible budgeting and a standard cost system. Preston allocates
overhead based on yards of direct materials.
Please prepare a flexible budget based on the actual number of
recliners sold & then (2) Compute the cost variance and the
efficiency variance for direct materials and for direct labor. For
manufacturing overhead, compute the variable overhead cost,
variable overhead efficiency, fixed overhead cost, and fixed
overhead volume variances. Round to the nearest dollar.
Have Preston's...
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