Preparing a performance report
Use the flexible budget prepared in P7-6 for the 29,000-unit level of activity and the actual operating results listed below for the 29,000-unit level.
Required:
1. Prepare a performance report.
2. List the major reasons why the actual operating income at 29,000 units differs from the master budget operating income at 30,000 units in Figure 7-12.
3. Given the level that the company operated at, how was its cost control?
Item
Sales
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,200,000
Direct materials:
Lumber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565,000
Paint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,000
Direct labor:
Cutting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000
Assembly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,200
Painting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,600
Variable factory overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202,000
Variable selling and administrative expense . . . . . . . . . . . . . 741,300
Fixed factory overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,000
Fixed selling and administrative expense . . . . . . . . . . . . . . . . 770,200
Reference: P7-6
Preparing a flexible budget
Use the information in Figure 7-12 of the chapter.
Required: Figure 7-12
Prepare flexible budgets for the production and sale of 29,000 units and 31,000 units, respectively.
Reference:
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.