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...
Following is the static budget and actual results of Yoga Inc.
for the month of April...
Following is the static budget and actual results of Yoga Inc.
for the month of April 20X4.
The management is pleased with the income higher than budgeted.
However they understand that significant increase in units sold
renders the comparison of actual results and the static budget
unfair.
Required: You are required to prepare a flexible budget at
actual level of output and calculate flexible budget variances.
Actual
Static
Units
40,000
30,000
Revenue
236,000
180,000
Variable Costs:
Material
76,000
60,000
Labor...
ames Manufacturing had the following information available for
July:
Actual Results
Flexible Budget Variance
Flexible Budget...
ames Manufacturing had the following information available for
July:
Actual Results
Flexible Budget Variance
Flexible Budget
Sales Activity Variance
Master Budget
Units
12,000
?
3,000
U
?
Sales revenue
?
$
16,800
F
?
?
?
Less:
Variable manufacturing costs
$
88,500
$
92,000
?
$
111,000
Variable marketing and administrative
?
$
5,500
U
?
$
6,200
F
$
33,000
Contribution margin
$
52,000
?
?
$
6,300
U
?
What was James’s master budget contribution margin?
Actual
Results
Flexible
Budget
Variance
Flexible
Budget
Sales
Activity
Variance
Master
Budget
Units
13,000
?
2000U...
Actual
Results
Flexible
Budget
Variance
Flexible
Budget
Sales
Activity
Variance
Master
Budget
Units
13,000
?
2000U
?
Sales
revenue
?
13,000F
?
?
?
Less:
<Variable mfg. Costs>
$87,750
$91,000
?
$105,000
<Variable mktg/adm.costs>
?
$3,250U
?
$4,000F
30,000
Contribution margin
$52,000
?
?
$6,000U
?
What is the master budget contribution margin?
Select one:
A. $52,000.
B. $45,000.
C. $47,500.
D. $39,000.
Estimate the flexible budget
Calculate the revenue variance, volume variance, price
variance
Calculate the profit variance,...
Estimate the flexible budget
Calculate the revenue variance, volume variance, price
variance
Calculate the profit variance, revenue variance and cost
variance
Explain what results show with respect to the profit and
revenue variances
Static
Actual
Patient Visits
1,000
900
Net Patient Revenue
$10,000
$9,100
Variable Costs
$6,000
$5,580
Contribution Margin
$4,000
$3,520
Fixed Costs
$3,000
$2,900
Operating Income
$1,000
$620
XYZ Company's budgeted and actual results for last year are as
follows:
Master budget
Actual results...
XYZ Company's budgeted and actual results for last year are as
follows:
Master budget
Actual results
Price
$600
$700
Sales volume (units)
7,000
5,000
Unit VC
$200
$200
Fixed costs
$200,000
$200,000
Required:
(a) Compute budgeted and actual revenue, costs and profits:
Master budget
Actual
Sales volume (units)
Revenue
$
$
Variable costs
$
$
Contribution margin
$
$
Fixed costs
$
$
Profit
$
$
In (b)-(d) below, enter favorable and unfavorable variances as
positive and negative numbers, without...
Hyson Inc. manufactures and sells
produces. The master budget and the actual results for July are...
Hyson Inc. manufactures and sells
produces. The master budget and the actual results for July are as
follows:
Actual July
Sales
Master Budget
Un it sales
12,000
10,000
Sales
$132,000
$100,000
Variable costs
$70,800
$60,000
Contribution margin
$61,200
$40,000
Fixed costs
$30,000
$25,000
Operating income
$31,200
$15,000
If flexible budgeting is used, how much is contribution margin
per unit based on actual sales of 12,000 units?
(A)
$4.00
(B)
$5.10
(C)
$4.55
(D)
None of the above
How much is...
Chatham Clinic has accumulated the following information
regarding its patient visits:
Static Budget
Actual Results
Patient...
Chatham Clinic has accumulated the following information
regarding its patient visits:
Static Budget
Actual Results
Patient visits
1,500
1,400
Variable cost per visit
$50
$55
Fixed costs
$100,000
$100,000
I. What is the cost variance for Chatham Clinic?
$2,000 favorable
$2,000 unfavorable
$7,000 favorable
$7,000 unfavorable
$5,000 favorable
II. What is the management variance for Chatham Clinic?
$2,000 favorable
$2,000 unfavorable
$7,000 favorable
$7,000 unfavorable
$5,000 favorable
The following information relates to Gouws Manufacturing's
overhead costs for the month:
Static budget variable overhead...
The following information relates to Gouws Manufacturing's
overhead costs for the month:
Static budget variable overhead $14,200
Static budget fixed overhead $5,600
Static budget direct labor hours 1,000 hours
Static budget number of units 5,000 units
Welty allocates manufacturing overhead to production based on
standard direct labor hours.
Welty reported the following actual results for last month:
actual variable overhead, $ 14,500; actual fixed overhead, $
$5,400; actual production of 4,700 units at 0.22 direct labor hours
per unit. The...