As sales manager, Joe Batista was given the following static
budget report for selling expenses in...
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 COMPANY
Clothing Department
Budget Report
For the Month Ended October 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Sales in units
8,200
11,000
2,800
Favorable
Variable expenses
Sales commissions
$1,804
$2,750
$946
Unfavorable
Advertising expense
820
990
170
Unfavorable
Travel expense
3,772
4,950
1,178
Unfavorable
Free samples given out...
Exercise 22-9
As sales manager, Joe Batista was given the following static
budget report for selling...
Exercise 22-9
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 COMPANY
Clothing Department
Budget Report
For the Month Ended October 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Sales in units
8,500
10,000
1,500
Favorable
Variable expenses
Sales commissions
$2,380
$2,600
$220
Unfavorable
Advertising expense
850
900
50
Unfavorable
Travel expense
3,910
3,500
410
Favorable
Free samples...
You are given the following static budget report:
Budget Actual Variance
Unit
Sales  
You are given the following static budget report:
Budget Actual Variance
Unit
Sales 10,000 15,000 5,000
F
Variable Expenses:
Commissions $30,000
$33,000 $3,000 U
Advertising $1,000
$1,200 $200 U
Travel $10,000
$11,000 $1,000 U
Samples $2,500
$2,300 $200 F
Total
Variable $43,500
47,500 $4,000 U
Fixed Expenses
Rent $5,000
$5,000 0
Salaries –
Sales $2,000
$2,000 0
Salaries –
Office $1,200
$1,200 0
Depreciation $1,500
$1,500 0
Total
Fixed $9,700
$9,700 0
Total Expenses $53,200 $57,200 $4,000 U
Prepare a flexible budget analysis and explain whether you
believe that costs were controlled. How do the results
of...
Kirkland Company combines its operating expenses for budget
purposes in a selling and administrative expense budget....
Kirkland Company combines its operating expenses for budget
purposes in a selling and administrative expense budget. For the
first 6 months of 2020, the following data are available.
1. Sales: Quarter 1: 20,000 units Quarter 2: 22,000 units
2. Variable costs per dollar of sales: sales comissions 5%,
delivery expense 2%, and advertising 3%.
3. Fixed costs per quarter: sales salaries $12,000, office
salaries $8,000, depreciation $4,200, insurance $1,500, utilities
$800, and repairs expense $500
4. Units selling price: $20....
Bay City Company’s fixed budget performance report for July
follows. The $594,000 budgeted total expenses include...
Bay City Company’s fixed budget performance report for July
follows. The $594,000 budgeted total expenses include $450,000
variable expenses and $144,000 fixed expenses. Actual expenses
include $134,000 fixed expenses.
Fixed Budget
Actual Results
Variances
Sales (in units)
8,100
7,000
Sales (in dollars)
$
648,000
$
623,000
$
25,000
U
Total expenses
594,000
556,000
38,000
F
Income from operations
$
54,000
$
67,000
$
13,000
U
Prepare a flexible budget performance report that shows any
variances between budgeted results and actual...
Myers Company uses a flexible budget for manufacturing overhead
based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead
based on direct labor hours. Variable manufacturing overhead costs
per direct labor hour are as follows.
Indirect labor
$1.10
Indirect materials
0.60
Utilities
0.40
Fixed overhead costs per month are Supervision $3,900, Depreciation
$1,200, and Property Taxes $500. The company believes it will
normally operate in a range of 7,400–11,300 direct labor hours per
month.
Assume that in July 2017, Myers Company incurs the following
manufacturing overhead costs.
Variable Costs
Fixed...
Exercise 21-4 Preparing a flexible budget performance report LO
P1
Xion Co. budgets a selling price...
Exercise 21-4 Preparing a flexible budget performance report LO
P1
Xion Co. budgets a selling price of $81 per unit, variable costs
of $34 per unit, and total fixed costs of $280,000. During June,
the company produced and sold 11,800 units and incurred actual
variable costs of $361,000 and actual fixed costs of $295,000.
Actual sales for June were $985,000.
Prepare a flexible budget report showing variances between budgeted
and actual results. List variable and fixed expenses separately.
(Indicate the...
Exercise 9-14 Prepare a Flexible Budget Performance Report
[LO9-4]
Lavage Rapide is a Canadian company that...
Exercise 9-14 Prepare a Flexible Budget Performance Report
[LO9-4]
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:
Fixed Cost
per Month
Cost per
Car Washed
Cleaning supplies
$
0.40
Electricity
$
1,400
$
0.10
Maintenance
$
0.20
Wages and salaries
$
4,200
$
0.30
Depreciation
$
8,300
Rent
$
1,900
Administrative expenses
$
1,500
$
0.03
For example, electricity costs are...
Pebco Company’s 2011 master budget included the following fixed
budget report. It is based on an...
Pebco Company’s 2011 master budget included the following fixed
budget report. It is based on an expected production and sales
volume of 17,000 units.
PEBCO COMPANY
Fixed Budget Report
For Year Ended December 31, 2011
Sales
$
3,400,000
Cost
of goods sold
Direct materials
$
1,005,000
Direct labor
225,000
Machinery repairs (variable
cost)
75,000
Depreciation—plant equipment
315,000
Utilities ($50,000 is variable)
210,000
Plant management salaries
215,000
2,045,000
Gross profit
1,355,000
Selling expenses
Packaging
80,000
Shipping
115,000
Sales salary...