For the quarter ended March 31, 2022, Pharoah Company accumulates the following sales data for its product, Garden-Tools: $341,000 budgeted: $327,000 actual. Prepare a static budget report for the quarter. Product Line Garden- Tools $ Budget PHAROAH COMPANY Sales Budget Report Actual 4 Difference Favourable Unfavourable. Neither Favourable nor Unfavourab

For the quarter ended March 31, 2022, Pharoah Company accumulates the following sales data for its product, Garden-Tools: $341,000 budgeted: $327,000 actual. Prepare a static budget report for the quarter. Product Line Garden- Tools $ Budget PHAROAH COMPANY Sales Budget Report Actual 4 Difference Favourable Unfavourable. Neither Favourable nor Unfavourab

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...

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a) Why do successful companies tend to use the bottom-up approach to establish a master budget? b) Green Tea’s data show the following information for the financial year, beginning July 2020: July Aug. Sept. Oct. Nov. Estimated sales (units) 25,000 25,000 27,000 27,500 28,000 Sales price per unit $31 $31 $31 $31 $31 Direct labour per unit $1.75 $1.75 $1.50 $1.50 $1.50 Labour rate per hour $21 $21 $24 $24 $24 New machinery will be added in September. This machine will reduce the labour required per unit and increase the labour rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month’s requirements. Direct material requires 2.5 kg per unit at a cost of $5 per kg. The ending inventory required for direct materials is 20% of the next month’s needs. In July, the beginning inventory is 3,750 units of finished goods and 13,125 kg of…
The followings are the budget for next financial year (1 January 2023 - 31 December 2023), indicating the average selling price and variable costs of each product category. The common fixed manufacturing overhead and the fixed non-manufacturing overhead costs are estimated to be $1,250,000 and $2,778,320 respectively. Table 1: Budget Jan - Dec 2023 Sales Quantity (in units) In $ Unit selling price Unit production cost Unit selling & admin variable costs (5% of selling price) In $ Revenue Variable Production Costs Selling & Admin Variable Costs Model 1 8,400 600 250 30 Folding Bike Model 2 7,500 400 180 20 Model 3 3,500 480 200 24 Electric Bike 800 2,000 850 100 Total 20,200 5,040,000 3,000,000 1,680,000 1,600,000 11,320,000 (2,100,000)| (1,350,000)| (700,000)| (680,000)| (4,830,000) (252,000) (150,000) (84,000) (80,000) (566,000) Q1. Based on the above budgeted information, calculate the expected breakeven units for the Model 2 folding bikes.
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The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $11,180 Sales salaries $35,500 Advertising 10,530 Depreciation 7,400 Travel 6,920 Insurance 1,100 Delivery 3,580 (b) Prepare a flexible budget performance report, assuming that March sales were $180,500. (List variable costs before fixed costs.) FALLON COMPANYSelling Expense Flexible Budget ReportFor the Month Ended March 31, 2020 Difference Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Select an opening flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses $Enter a dollar amount $Enter a dollar amount Select an opening name for…
The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(
1. AL Jamat Inc. is preparing its annual budgets for the year ending December 31, 2020.Accounting assistants furnish the data shown below. Detail Product AProduct C Sales Budget Anticipated Volume in units Unit Selling price Production Budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 40500 20500 55 45 2500 1500 3000 1000 20 30 3000 1500 4000 1000 3 0.4 0.6 122 155 122 222 has prepared An accounting assistant manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $645,000 for product A and $345,000 for product C, and administrative expenses of $545,000 for product A and $345,000 for product C. Income taxes are expected to be the detailed…
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October. SORIA COMPANYClothing DepartmentBudget ReportFor the Month Ended October 31, 2020 Difference Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Sales in units 7,500 11,000 3,500 Favorable Variable expenses Sales commissions $1,950 $2,970 $1,020 Unfavorable Advertising expense 975 1,210 235 Unfavorable Travel expense 3,600 3,850 250 Unfavorable Free samples given out 1,200 1,540 340 Unfavorable Total variable 7,725 9,570 1,845 Unfavorable Fixed expenses Rent 1,500 1,500 –0– Neither Favorable nor Unfavorable Sales salaries 1,300 1,300 –0– Neither Favorable nor Unfavorable Office salaries 900 900 –0–…
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Swifty Company for the month of October. SWIFTY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 9,760 12,200 2,440 Favorable Variable expenses Sales commissions $2,928 $3,172 $244 Unfavorable Advertising expense 976 1,037 61 Unfavorable Travel expense 4,392 5,002 610 Unfavorable Free samples given out 1,952 1,708 244 Favorable Total variable 10,248 10,919 671 Unfavorable Fixed expenses Rent 1,830 1,830 -0- Neither Favorable nor Unfavorable Sales salaries 1,464 1,464 -0- Neither Favorable nor Unfavorable Office salaries 976 976 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 610 610 -0- Neither Favorable nor Unfavorable Total fixed 4,880 4,880 -0- Neither Favorable nor Unfavorable Total expenses $15,128 $15,799 $671…