Homework Answers
in flexible budget the variable costs changes as per change in units
however fixed cost remains constant
| cost per unit | static | flexible budget 3000 | flexible budget 7000 | volume variance | |
| Number of units | 5000 | 3000 | 7000 | 2000F[7000-5000] | |
| sales revenue | 150 | 750000 | 450000[3000*150] | 1050000[7000*150] | 300000F[1050000-750000] |
| variable manufacturing cost | |||||
| material | 45 | 225000 | 135000[3000*45] | 315000[7000*45] | 90000U[225000-315000] |
| labor | 30 | 150000 | 90000[3000*30] | 210000[7000*30] | 60000U |
| overhead | 7 | 35000 | 21000[7*3000] | 49000[7000*7] | 14000U |
| variable general | 9 | 45000 | 27000[3000*9] | 63000[7000*9] | 18000U |
| contribution margin | 295000 | 177000[450000-135000-90000-21000-27000] | 413000[1050000-315000-210000-49000-63000] | 118000F | |
| fixed costs | |||||
| manufacturing rent | 59000 | 59000 | 59000 | NO EFFECT | |
| depreciation on equipment | 69000 | 69000 | 69000 | NO EFFECT | |
| selling general | 85900 | 85900 | 85900 | NO EFFECT | |
| depreciation | 21000 | 21000 | 21000 | NO EFFECT | |
| Net income(Loss) | 60100 | -57900[177000-59000-69000-85900-21000] | 178100[413000-59000-69000-85900-21000] | 118000F | |
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The management of Jordan Modems, Inc. (JMI) is uncertain as to the volume of sales that...
The management of Benson Modems, Inc. (BMI) is uncertain as to the volume of sales that...
The management of Benson Modems, Inc. (BMI) is uncertain as to the volume of sales that will exist in Year 1. The president of the company asked the chief accountant to prepare flexible budget income statements assuming that sales activity amounts to 5,000 and 7,000 units. The static budget is shown in the following form. Required a. Complete the following worksheet to prepare the appropriate flexible budgets. b. Calculate and show the flexible budget variances for the static budget versus...
Jordan Publications established the following standard price and costs for a hardcover picture book that the...
Jordan Publications established the following standard price and costs for a hardcover picture book that the company produces $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 36.90 8.50 4.10 6.20 6.60 $132,000 49,000 Jordan planned to make and sell 30,000 copies of the book. Required: a. . d. Prepare the pro forma income statement that would appear in the master...
Jordan Modems, Inc. makes modem cards that are used in notebook computers. The company completed the...
Jordan Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash. Acquired $840,000 of cash from the owners. Purchased $315,000 of manufacturing equipment. The equipment has a $39,000 salvage value and a four-year useful life. Label the purchase of the equipment as Event 2a and the recognition of depreciation as Event 2b. The company started and completed 5,900 modems. Direct materials purchased...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing Overhead Selling general, and administrative 36.60 8.50 3.80 5.50 6.40 $129,000 50.000 Vernon planned to make and sell 31.000 copies of the book. Required: a.-d. Prepare...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Thornton Publications established...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Thornton Publications established the following standard price and costs for a hardcover picture book that the company produces. $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 36.70 8.30 3.70 6.00 7.10 $ 127,000 51,000 Thornton planned to make and sell 35,000 copies of the book. Required: a.-d....
The following information is available for Brownstone Products Company for the month of July: Units Sales...
The following information is available for Brownstone Products Company for the month of July: Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Master Actual Budget 3,900 3,200 $55,800 $60,000 10,900 16,000 12,800 13,800 7,400 8,000 8,800 10,450 Required: 1. What was the total operating income variance for July? (Note: this variance is also called the master (static) budget variance for the period.) Was this variance favorable (F) or unfavorable...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Zachary Publications established...
Problem 15-20 Determining sales and variable cost volume
variances LO 15-2, 15-3, 15-4
Zachary Publications established the following standard price
and costs for a hardcover picture book that the company
produces.
Standard price and variable costs
Sales price
$
36.50
Materials cost
8.70
Labor cost
4.20
Overhead cost
5.80
Selling, general, and administrative costs
6.90
Planned fixed costs
Manufacturing overhead
$
129,000
Selling, general, and administrative
51,000
Zachary planned to make and sell 29,000 copies of the book.
Required:
a....
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces. $ 36.60 8.50 Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 3.80 5.60 6.40 $129,000 50,000 Vernon planned to make and sell 31,000 copies of the book. Required: a.-d. Prepare...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Perez Publications established...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Perez Publications established the following standard price and costs for a hardcover picture book that the company produces. $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 36.70 8.20 4.50 5.60 7.10 $ 130,000 46,000 Perez planned to make and sell 24,000 copies of the book. Required: a.-d....
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Stuart Publications established t...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Stuart Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.90 Materials cost 8.20 Labor cost 4.10 Overhead cost 6.20 Selling, general, and administrative costs 6.30 Planned fixed costs Manufacturing overhead $ 132,000 Selling, general, and administrative 53,000 Stuart planned to make and sell 33,000 copies of the book. Required: a....
The management of Benson Modems, Inc. (BMI) is uncertain as to the volume of sales that will exist in Year 1. The president of the company asked the chief accountant to prepare flexible budget income statements assuming that sales activity amounts to 5,000 and 7,000 units. The static budget is shown in the following form. Required a. Complete the following worksheet to prepare the appropriate flexible budgets. b. Calculate and show the flexible budget variances for the static budget versus...
Jordan Publications established the following standard price and costs for a hardcover picture book that the company produces $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 36.90 8.50 4.10 6.20 6.60 $132,000 49,000 Jordan planned to make and sell 30,000 copies of the book. Required: a. . d. Prepare the pro forma income statement that would appear in the master...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing Overhead Selling general, and administrative 36.60 8.50 3.80 5.50 6.40 $129,000 50.000 Vernon planned to make and sell 31.000 copies of the book. Required: a.-d. Prepare...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Thornton Publications established the following standard price and costs for a hardcover picture book that the company produces. $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 36.70 8.30 3.70 6.00 7.10 $ 127,000 51,000 Thornton planned to make and sell 35,000 copies of the book. Required: a.-d....
The following information is available for Brownstone Products Company for the month of July: Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Master Actual Budget 3,900 3,200 $55,800 $60,000 10,900 16,000 12,800 13,800 7,400 8,000 8,800 10,450 Required: 1. What was the total operating income variance for July? (Note: this variance is also called the master (static) budget variance for the period.) Was this variance favorable (F) or unfavorable...
Problem 15-20 Determining sales and variable cost volume
variances LO 15-2, 15-3, 15-4
Zachary Publications established the following standard price
and costs for a hardcover picture book that the company
produces.
Standard price and variable costs
Sales price
$
36.50
Materials cost
8.70
Labor cost
4.20
Overhead cost
5.80
Selling, general, and administrative costs
6.90
Planned fixed costs
Manufacturing overhead
$
129,000
Selling, general, and administrative
51,000
Zachary planned to make and sell 29,000 copies of the book.
Required:
a....
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces. $ 36.60 8.50 Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 3.80 5.60 6.40 $129,000 50,000 Vernon planned to make and sell 31,000 copies of the book. Required: a.-d. Prepare...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Perez Publications established the following standard price and costs for a hardcover picture book that the company produces. $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative 36.70 8.20 4.50 5.60 7.10 $ 130,000 46,000 Perez planned to make and sell 24,000 copies of the book. Required: a.-d....
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