Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. Note: 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. Cars washed Revenue Expenses: Cleaning supplies Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,100 S 57,300 6,900 Flexible Budget Planning Budget
Q: On January 1, the Matthews Band pays $67,200 for sound equipment. The band estimates it will use…
A: The objective of the question is to calculate the first-year depreciation of the sound equipment…
Q: Windsor Company purchases equipment on January 1, Year 1. at a cost of $516,000. The asset is…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: Trevor Mills produces agricultural feed at its only plant. Materials are added a the beginning of…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…
A: Product line analysis is necessary when there is more than one product in a company. A segmented…
Q: Margo bought stock for $1,500 plus a $25 commission; 18 months later she sold all the stock for…
A: Form 1099-B will also indicate the date the stock was sold. The purchase and sell dates will…
Q: Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated…
A: The margin is calculated as the difference between the sales and expenses. The residual income is…
Q: he earned income credit is $ 5,770 X.
A: In an effort to lessen some of the financial difficulties that come with having a modest income, the…
Q: Ray Company provided the following excerpts from its Production Department's flexible budget…
A: Flexible budget performance report is the one which is prepared by the entity to compute the…
Q: Prepare the following journal entries: 1. To record construction cost 2. To record billings 3. To…
A: Particulars Debit Credityear 2021:Construction Work in Progress $4,000,000…
Q: Marquette Innovations Corp. is considering investing in new excavation equipment for their mining…
A: Net Present Value: Net present value (NPV) is the difference between present value of the cash…
Q: On June 3, 20X1, Alaska State Company received a $5,400, 45-day, 12 percent note from Samuel Adams,…
A: Journal entry is an art of recording, summarizing and classifying the business transactions into…
Q: Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,900…
A: When making decisions about price, product line discontinuation, acceptability or rejection of…
Q: Diego Company paid $194,000 cash to acquire a group of items consisting of land appraised at $57,000…
A: The objective of the question is to allocate the total cost paid by Diego Company to acquire a group…
Q: Determine the missing amounts. (1) $ (2) (3) Total Manufacturing Costs $297,000 $ $312,000 Work in…
A: Lets understand the basics.For calculating missing amount, we need to use below formula.Cost of…
Q: QS 8-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $66,400 for…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: The Smiths have four dependent children, ages 17, 15, 13, and 11. They pay their 17-year-old $3,200…
A: The child and dependent care credit is a tax credit provided to the taxpayers to recover the care…
Q: In March, Department B transferred to Department C, 100,000 units costing P450,000. In addition to…
A: The production cost report using the FIFO method is prepared by assuming the work done on the…
Q: Comprehensive Problem One Noah and Joan Arc’s Tax Return Noah and Joan Arc live with their family in…
A: The objective of this question is to prepare the federal income tax return for Noah and Joan Arc…
Q: x Your answer is incorrect. Ivanhoe Corporation produces microwave units. The following per-unit…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: Healthfirst (HF) Ltd has recently started to produce a face shield and product's standard cost data…
A: Relevant costs and benefits are those costs and revenues that are directly applicable to a specific…
Q: The fact that generally accepted accounting principles allow companies flexibility in choosing…
A: Depreciation:It is the amount of reduction in the value of a tangible fixed asset due to tear and…
Q: a. If the election to split gifts is not made, the taxable gift is $ b. If the election to split…
A: A gift tax is a levy imposed on the transfer of assets or money from one person to another above a…
Q: Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers…
A: Book value of an assetBook value of an asset is the cost of an asset or the value entered in the…
Q: Would it be advantageous for Wynn Manufacturing Corporation if the Cranston Division makes the…
A: Return on Investment (ROI): It is a financial ratio which represents the proportion of Net Income…
Q: Turmer Hardware is adding a new product line that will require an investment of $1,530,000. Managers…
A: The payback period is a financial metric used to evaluate the time it takes for a project or…
Q: c. d. e. c. d. e. c. d. e. c. d. e. - a. - a. - a. - a. S corporation C corporation Limited…
A: The matching exercise involves associating characteristics related to the tax treatment of…
Q: Batman Inc. uses revaluation accounting for its Machinery. The following information has been…
A: Accumulated depreciation is the total depreciation expenditure that has been recorded over the…
Q: Masterson Company's budgeted production calls for 56,000 units in April and 52,000 units in May of a…
A: Budgeting for materials involves calculating and planning how much raw material will be required for…
Q: On January 1, 2023, when the fair value of its common shares was $80 per share, Blossom Corp. issued…
A: 1. Journal entry for original issuance of convertible debenturesDebitcreditCash Dr9,500,000Bonds…
Q: Adding Company applies overr cost products based on a pre-determined overhead rate of 80% of direct…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: Roger Inc. began work in 2021 on a contract for $8,400,000. Other data are as follows:…
A: The percentage of completion method is employed in accounting for extended projects or contracts…
Q: * Your answer is incorrect. Sandhill Company started operations on January 1, 2015, and has used the…
A: Retained Earnings is the amount of the net income which is left over after paying the dividends to…
Q: James Manufacturing had the following information available for July: Actual Results Units Sales…
A: The master budget represents the fixed budget prepared for the period. The flexible budget can be…
Q: Required information [The following information applies to the questions displayed below.] The…
A: The figure found is called variance when there is any difference between actual and budgeted.…
Q: A company has an investment in 7% bonds with a par value of $180,000 that pays interest on October 1…
A: Interest = Principal x Rate x Time
Q: Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost…
A: Accounting Rate of Return is a financial metric that assesses profitability by comparing average…
Q: COTB MC Qu. 16-76 (Algo) Assume a company provided the... Assume a company provided the following…
A: Times interest earned ratio: The time interest earned (TIE) ratio is a measure of a company's…
Q: Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is…
A: Translation is the process through which the financial statements of a foreign subsidiary are…
Q: Which of the following medical expenses are likely deductible assuming the 7.5%-of-AGI threshold is…
A: The objective of the question is to determine which of the given medical expenses are likely…
Q: Division A manufactures electronic circuit boards. The boards can be sold either to Division B of…
A: The decision to sell products or services to outside customers or in-house departments depends on…
Q: Required: 1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. Express each…
A: Vertical analysis and horizontal analysis are two methods used in financial statement analysis to…
Q: Waterway Industries had net income for 2021 of $615000. The average number of shares outstanding for…
A: Diluted earnings per share= (Net Income – Preferred Dividends) ÷ Weighted Average of Diluted Common…
Q: The Tamarisk manufactures double-sided pens-a pen on one side, a highlighter on the other. As the…
A: Fixed Manufacturing Overhead (MOH) Volume Variance: The fixed manufacturing overhead volume variance…
Q: Direct Materials: (Input) 10 ft. at $6 per foot; (Cost per Output Unit) $60 Direct Manufacturing…
A: Variance analysis is the difference between the standard performance and the actual performance,…
Q: A company began a new software development project in 2023. The project reached technological…
A: The objective of the question is to determine the amount of software development costs that will be…
Q: The following account balances are for the Agee Company as of January 1, 2020, and December 31,…
A: The rate at which one country’s currency can be converted into another country’s currency referred…
Q: Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $9,900, terms…
A: The amount of the money required to create, market, and sell the items and an services or to buy…
Q: Providing for doubtful accounts At the end of the current year, the accounts receivable account has…
A: The allowance for doubtful accounts has normal credit balance. The adjustment entries are prepared…
Q: Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn).…
A: The objective of the question is to calculate Saturn's capital balance after the distribution of the…
Q: Required: From a value-based pricing standpoint:
A: Value-based pricing is frequently applied to goods and services that have distinctive features,…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Required: Calculate the company's activity variances for August. (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.)Dog Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company’s costs: Fixed Cost per MonthCost per Car WashedCleaning supplies $ 0.80Electricity$ 1,200$ 0.15Maintenance $ 0.20Wages and salaries$ 5,000$ 0.30Depreciation$ 6,000 Rent$ 8,000 Administrative expenses$ 4,000$ 0.10For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Required: Calculate the company's activity variances for August. (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.)Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Administrative expenses For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.60 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Required: Prepare the company's flexible budget for August. Cleaning supplies Electricity Maintenance Fixed Cost per Month $ 1,400 Wages and salaries Depreciation Rent Cost per Car Washed $ 0.60 $ 0.06 $ 0.25 $ 0.20 $ 4,700 $ 8,500 $ 1,900 $ 1,300 $ 0.05 с
- King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. In July, the following costs were recorded for refrigerators: Professional sales staff commissions Amortization on office space Selling supplies Office staff expenses Customer relations Training expenses Utilities $84,000 4,000 6,400 24,800 8,600 6,000 1,400 Required: a. Which of the costs will be subject to direct cost tracing? b. What is the total cost for refrigerators? c. What is the total cost of the Sales Support for refrigerators?Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
- Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Required: 1. Calculate the prime cost per cleaning. 2. Calculate the conversion cost per cleaning. 3. Calculate the total variable cost per cleaning. 4. Calculate the total service cost per cleaning. 5. What if rent on the office that Jean and Tom use to run HHH increased by 1,500? Explain the impact on the following: a. Prime cost per cleaning b. Conversion cost per cleaning c. Total variable cost per cleaning d. Total service cost per cleaningSchneider Logistics Company has built a new warehouse in Columbus, Ohio, to facilitate the consoli-dation of freight shipments to customers in the region. George Schneider must determine how manyteams of dock workers he should hire to handle the cross-docking operations and the other warehouseactivities. Each team costs $5,000 a week in wages and overhead. Extra capacity can be subcontracted ata cost of $8,000 a team per week. Each team, whether in-house or subcontracted, can satisfy 200 laborhours of work a week. The labor hour requirements for the new facility are uncertain. Management hasestimated the following probabilities for the requirements: How many teams should Schneider hire?Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)
- Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours 1 $ 2,780 1,870 2 2,940 1,950 3 3,090 2,030 4 3,200 2,050 5 3,280 2,080 6 3,250 2,060 7 3,190 2,040 8 3,030 2,020 9 2,800 1,880 10 2,400 1,280 11 2,410 1,480 12 2,630 1,770 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Per Unit Dollar Amount Price $60,000 Cost of goods sold Gross profit 28,000 32,000 In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: Budgeted Activity Cost Activity Base $51,500 Number of service requests Activity Customer service Project bidding Engineering support 64,000 Number of bids 110,500 Number of customer design changes Total costs 226,000…JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using this information,classify each of the following costs as fixed or variable with respect to the number of bikes made. Taxes on property