FlexibleSalesActualFlexibleMasterBudgetActivityResultsBudgetBudgetVarianceVarianceUnits10,000?2,700Sales revenue?10,000 F??Less:87,10090,300?98,000Contribution margin51,300??6,700What is the sales revenue in the flexible budget?Hint: Use your variances to find missing numbers and back into an answer

Budgetary control: It is the process under which the budget is compared with actual performance to…

Flexible Sales Actual Flexible Master Budget Activity Results Budget Budget Variance Variance Units 10,000 ? 2,700 ? Sales revenue ? 10,000 F ? ? ? Less: 87,100 90,300 98,000 ? 3,900 ? 3,300 F 29,300 Contribution margin 51,300 ? ? 6,700 U ? What is the sales revenue in the flexible budget? Hint: Use your variances to find missing numbers and back into an answer

Flexible Sales Actual Flexible Master Budget Activity Results Budget Budget Variance Variance Units 10,000 ? 2,700 ? Sales revenue ? 10,000 F ? ? ? Less: 87,100 90,300 98,000 ? 3,900 ? 3,300 F 29,300 Contribution margin 51,300 ? ? 6,700 U ? What is the sales revenue in the flexible budget? Hint: Use your variances to find missing numbers and back into an answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Estimating the effects of changes in budget assumptions, such as determining the impact of an increase or decrease in sales, is called: Question 4 options: static budget analysis. sensitivity analysis. variance analysis, cost reduction analysis. (Ch 10) An advantage of a flexible budget is that it: Question 5 options: allows comparison of actual costs to master (static) budget costs. considers only variable costs. allows comparisons of actual costs to the costs that should have been incurred, given the level of sales. allows management freedom in meeting profitability goals.
Management Accounting Question (Qualitative Short Answer) a. Why is the sales forecast the starting point in budgeting? b. What is a perpetual budget? c. Which is a better basis for evaluating actual results: budgeted performance or past performance? Why? d. The materials price variance can be computed at what two different points in time? Which point is better and why? e. What effect, if any, would you expect purchasing poor-quality materials to have on direct labor variances? f. Distinguish between ideal and practical standards. g. Costs associated with the quality of conformance can be broken down into four broad groups. What are these four groups and how do they differ? h. What is likely the most effective way to reduce a company's total quality costs? i. What are the three main uses of quality cost reports?
Q - 5: static budget? Also explain characteristics' of flexible budget. Q- 6: what is a flexible budget and how does it differ from a Distinguish between Traceable Cost and common Cost and give examples of each. Whot ig moont hy Trongfor prico ond why trongfor
Q.Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.)
Static budgets use a static c. flexible d. high level of activity. a. low b.
A flexible budget ( check all that apply): a. Separates variable costs from fixed costs b. Shows reevenues and expenses for varous levels of sales volume c. Reports variable costs on a per unit basis d. Reports fixed costs on a oer unit basis
Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,000 tires at a variable cost of $73 per tire and total fixed costs of $57,000. The budgeted selling price was $111 per tire. Actual results in August 2020 were 2,700 tires manufactured and sold at a selling price of $113 per tire. The actual total variable costs were $218,700, and the actual total fixed costs were $53,500. Read the requirements Requirement 1. Prepare a performance report with a flexible budget and a static budget Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a 10 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label) Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Actual Results
Crystal Mining has completed the following data to analyze utility cost:MonthMachine Hours Utility CostJanuary200P 300February325440March400480April410490May525620June680790July820840August900900Required:1.Use the least squaresmethod to develop a formula for budgeting utility cost. (Round off value of b to two decimal places and the value of a to nearest peso.2.Prepare flexible budget with separate variable and fixed categories for utility costs at 350, 500, and 600 machine hours.
Question 2:Different type of Budget name are specify in front of each description, You are required to write the budget name in 3rd column with reason as option 1 is solved as an example. Description Name of Budget Option with analysis (Answering Вох) 1.It is the forecast of the overall sales for Direct Material Sale Budget the year, so that next year it can be a Usage Budget Reason: Because it is related to better estimate the estimation of sale value according to the company availability of resources. 2. A budget that usually take in to account Plant Utilization the opening and closing stock with an Budget sales for better estimation. 3. The type of budget that show the quantities of material required in budgeted production. Research and development Budget 4. The budget contains an estimate of all Cash or Financial direct labor cost required to produce the Budget budgeted products. 5. Budget that use machine load production department, overloading on plant and machinery. Master…
Perform a sensitivity analysis on the budget for values from $5,000 to $35,000 inincrements of $5,000. Construct a graph of percentage reach versus budget. Is theadditional increase in percentage reach monotonically decreasing as the budget allocationincreases? Why or why not? What is your recommended budget? Explain.
Variance Industries, Ltd. creates problems for accounting students. At the end of the first quarter of 2021, you have been asked to prepare a variance analysis of the company's operations for the quarter recently ended. You have gathered the data below from the company's accounts and the static budget prepared in December 2020. Variable and fixed manufacturing overhead are allocated based on direct- labour dollars. Units manufactured and sold Sales revenue Variable costs Direct materials Direct labour Variable manufacturing overhead Total variable costs Contribution margin Fixed manufacturing overhead Operating income (loss) Actual results Static budget 10,000 12,000 $320,000 $50,000 125,000 29,000 204,000 116,000 73,000 43,000 $360,000 $60,000 120,000 24,000 204,000 156,000 72,000 84,000
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