Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses per Month Repair-Hour $ 16.30 $ 8.60 $ 0.40 $ 1.70 $ 23,200 $ 1,600 $ 6,400 $ 3,480 $ 4,500 $ 0.80 For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses per Month Repair-Hour $ 16.30 $ 8.60 $ 0.40 $ 1.70 $ 23,200 $ 1,600 $ 6,400 $ 3,480 $ 4,500 $ 0.80 For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

See similar textbooks

Similar questions

Contribution Margin Volume Variance Iliff, Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: ToasterOven ConvectionOven Total Sales:     ($92 × 29,500) $2,714,000       ($155 × 15,500) $2,402,500   $5,116,500   Variable expenses 495,000   780,000   1,275,000       Contribution margin $2,219,000   $1,622,500   $3,841,500   Actual Amounts: ToasterOven ConvectionOven Total Sales:     ($81 × 25,000)   $2,025,000       ($165 × 12,500) $2,062,500   $4,087,500   Variable expenses 539,600   712,300   1,251,900       Contribution margin $1,485,400   $1,350,200   $2,835,600   Required: 1. Calculate the budgeted average unit contribution margin. Round your answer to the nearest cent. Use rounded answer in subsequent computations. 2.…
Contribution Margin Volume Variance Ioannis Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: ToasterOven ConvectionOven Total Sales:     ($96 × 27,500) $2,640,000       ($151 × 19,500) $2,944,500   $5,584,500   Variable expenses 535,000   750,000   1,285,000       Contribution margin $2,105,000   $2,194,500   $4,299,500   Actual Amounts: ToasterOven ConvectionOven Total Sales:     ($85 × 27,000)   $2,295,000       ($163 × 13,000) $2,119,000   $4,414,000   Variable expenses 513,200   721,200   1,234,400       Contribution margin $1,781,800   $1,397,800   $3,179,600   1. Calculate the budgeted average unit contribution margin. 2. Calculate the contribution margin volume variance
Contribution Margin Variance Iliff, Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: ToasterOven ConvectionOven Total Sales:     ($100 × 26,000) $2,600,000       ($145 × 16,000) $2,320,000   $4,920,000   Variable expenses 455,000   750,000   1,205,000       Contribution margin $2,145,000   $1,570,000   $3,715,000   Actual Amounts: ToasterOven ConvectionOven Total Sales:     ($80 × 24,500)   $1,960,000       ($165 × 13,500) $2,227,500   $4,187,500   Variable expenses 500,000   703,400   1,203,400       Contribution margin $1,460,000   $1,524,100   $2,984,100   Required: 1. Calculate the contribution margin variance.
Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. 2. Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was 75,200 (for 16,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
n/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false Up
2. Variable manufacturing overhead variance analysis The Sourdough Bread Company bakes baquettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company: 0.02 hours per baguette Direct manufacturing labor use Variable manufacturing overhead $10.00 per direct manufacturing labor-hour The Sourdough Bread Company provides the following additional data for the year ended December 31, 2021: 1.
Practice problem 2. MajorNet makes high-speed Internet connectors • Static budget: o Budgeted variable costs = $145/connector o Budgeted fixed costs = $7,500/month o Based on production and sales of 100 connectors in November • Actually, produced and sold 84 connectors • Actual total cost = $21,000 1) Total flexible budget cost for 84 connectors/month 2-1) Sales volume variance for total cost 2-2) Is this variance good news? 3-1) Flexible budget variance for total cost = 3-2) Is this variance good news? =
Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, L09-2] Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation $ 21,400 $ 15.00 $ 7.40 $ 2,750 $ 0.35 Truck operating expenses $ 5,740 $ 1.60 $ 4,630 $ 3,810 $ 0.50 Rent Administrative expenses For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 2,900 repair-hours in May, but actually worked 2,800 repair-hours. The company expects its sales to be $51.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue บ Expenses: Wages and salaries Parts and supplies IF Equipment…
EXERCISE 9-7 Flexible Budgets and Activity Variances LO9-1, LO9-2 Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Repair-Hour per Month Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent $23,200 $16.30 $8.60 $0.40 $1.70 $1,600 $6,400 $3,480 Administrative expenses. $4,500 $0.80 For example, wages and salaries should be $23,200 plus $16.30 per repair hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour.
Main,do?invoker=&takeAssignmentSessionLocator=&inprogress=false еВook Using the following budgeted information for production of 9,000 and 16,000 units, prepare a flexible budget for 17,000 units. Production 9,000 units 16,000 units Expense A $14,400 $25,600 Expense B 21,000 21,000 Expense C 45,000 #5,000 Total expenses $
II. SALES VARIANCE ANALYSIS The Furniluxe manufactures two types of study desk: one for the residential market, and the other for the school market. Budgeted and actual operating data for the year 2022 are: Static Budget Number of desk sold Contribution margin Residential School 390,000 $39,000,000 210,000 $16,800,000 Total 600,000 $55,800,000 School Total 580,000 $48,720,000 Actual Results Residential Number of desk sold Contribution margin 232,000 348,000 $20,880,000 $27,840,000 The Furnilixe prepared the budget for 2022 assuming a 15% market share based on total desk sales in the region. The total desk market was estimated to reach sales of 4,000,000 desks. However, actual total sales volume was 3,625,000 desks. Required: Compute the following variances in terms of contribution margin: 1. Compute the total sales-volume variance. (3%) 2. Compute the sales-mix variance and the sales-quantity variance by type of desk. (7%) 3. Compute the market share variance and the market size…