Actual pounds (9) Revenue ($4.25q) Flexible Budget For the Month Ended August 31 Expenses: Packing supplies ($0.259) Oyster bed maintenance ($3,000) Wages and salaries ($2,300 + $0.259) Shipping ($0.709) Utilities ($1,300) Other ($470 + $0.019) Total expenses Net operating income The actual results for August were as follows: Actual pounds Revenue Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Revenue Expenses: Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 7,400 $ 31,450 Packing supplies Oyster bed maintenance 1,850 3,000 4,150 5,180 1,300 544 16,024 $ 15,426 7,400 $ 27,300 Required: Calculate the company's revenue and spending 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. 2,020 2,860 4,560 4,910 1,110 1,164 16,624 $ 10,676

Actual pounds (9) Revenue ($4.25q) Flexible Budget For the Month Ended August 31 Expenses: Packing supplies ($0.259) Oyster bed maintenance ($3,000) Wages and salaries ($2,300 + $0.259) Shipping ($0.709) Utilities ($1,300) Other ($470 + $0.019) Total expenses Net operating income The actual results for August were as follows: Actual pounds Revenue Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Revenue Expenses: Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 7,400 $ 31,450 Packing supplies Oyster bed maintenance 1,850 3,000 4,150 5,180 1,300 544 16,024 $ 15,426 7,400 $ 27,300 Required: Calculate the company's revenue and spending 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. 2,020 2,860 4,560 4,910 1,110 1,164 16,624 $ 10,676

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 8PB: Mesa Aquatics, Inc. estimated direct labor hours as 1,900 in quarter 1, 2,000 in quarter 2.2,200 in...

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Actual pounds (q) Revenue ($4.00g) Expenses: Packing supplies ($0.50q) Oyster bed maintenance ($3,200) Wages and salaries ($2,900 + $0.309) Shipping ($0.809) Utilities ($830) Other ($450+ $0.059) Total expense Net operating income Flexible Budget For the Month Ended August 31 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income Revenue Expenses: Shipping Utilities Other Packing supplies Oyster bed maintenance Wages and salaries 8,000 $ 35, 200 4,200 3,100 5,640 6,950 810 980 Total expense Net operating income 21,680 $ 13,520 Required: Calculate the company's revenue and spending 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.)…
Actual pounds (9) Flexible Budget For the Month Ended August 31 Revenue ($4.189) Expenses: Packing supplies ($0.309) Oyster bed maintenance ($3,500) Wages and salaries ($2,000 + $0.459) Shipping ($0.659) Utilities ($1,250) Other ($510 + $0.019) Total expenses Net operating income The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 7,400 $ 30,340 2,228 3,500 5,330 4,810 1,250 584 17,694 $ 12,646 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Required: 7,400 $ 26,700 2,390 3,360 5,740 4,540 1,060 1,204 18,294 $ 8,406 Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values. Revenue Quilcene Oysteria Revenue and Spending Variances For the…
November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days, the kennel has provided the following data concerning the formules used in its budgeting and its actual results for November Data used in budgeting Revenue Wages and salaries Food and supplies. Facility expenses Administrative expenses Total expenses Actual results for November Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Fixed element per month. $0 $ 2,700 500 9,600 6,600 $ 19,400 $ 90,470 $ 20,606 $ 35,838 $ 20,857 $ 7,518 Variable element per tenant-day $ 28.00 $ 5.40 10.20 3.30 0.20 $ 19.10 The wages and salaries in the planning budget for November would be closest to:
es w Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($390.00q) Expenses: Wages and salaries ($11,200 + $126.00q) Supplies ($4.00q) Equipment rental ($2,300 + $22.00q) Insurance ($4,200) Miscellaneous ($500+ $1.46q) Total expense Net operating income During May, the company's actual activity was 340 diving-hours. 350 $ 136,500 Puget Sound Divers Flexible Budget For the Month Ended May 31
Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June. Quarter 1 Quarter 2 Sales $248,470 $251,539 Direct material purchases 120,295 128,832 Direct labor 76,553 74,289 Manufacturing overhead 26,000 24,400 Selling and administration expenses 33,500 33,500 Depreciation included in selling and administration expenses 2,000 2,500 Collection from customers 230,524 220,116 Cash payments for purchases 114,345 118,346 Additional data: Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000. The company has a 15% open line of credit for $70 000 with their bank. Required: a) Use this information to prepare a cash budget for the first two quarters of the year. i) Briefly comment on Picta Company’s expected cashflow position in the first two quarters of the year.
Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June. Quarter 1 Quarter 2 Sales $248,470 $251,539 Direct material purchases 120,295 128,832 Direct labor 76,553 74,289 Manufacturing overhead 26,000 24,400 Selling and administration expenses 33,500 33,500 Depreciation included in selling and administration expenses 2,000 2,500 Collection from customers 230,524 220,116 Cash payments for purchases 114,345 118,346 Additional data: Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000. The company has a 15% open line of credit for $70 000 with their bank. a) Use this information to prepare a cash budget for the first two quarters of the year. bi) Briefly comment on Picta Company’s…
Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Customers served Revenue ($3.60g) Expenses: Wages and salaries ($25,600+ $1.20g) Supplies ($0.50g) Insurance ($ 7,400) Miscellaneous expense ($6,200 + $0.40g) Total expense Net operating income. Customers served Revenue Expenses: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Wages and salaries Supplies Insurance Miscellaneous expense Total expense Required: Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U). (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.) Bickel Corporation Flexible Budget Performance Report For the Month Ended November 30 Actual Results…
Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Bickel Corporation - Comparison of Actual Results to Planning Budget For the Month Ended November 30 Customers served Revenue ($3.504) Expenses: Mages and salaries ($24,200 $1.324) Supplies ($0.729) Insurance ($6,100) Miscellaneous expense (55,100 50.410) Total expense Net operating income Actual Results 43,000 $150,300 80,960 28,840 6,100 20,920 136,820 $ 11,400 Planning Budget 42,000 $147,000 79,640 30,240 6,100 22,320 138,300 $1,700 Variances $3,300 F 1,320 U 1,400 F 0 None 1,400 F 1,480 F $4,780 F Required: Prepare the company's Comprehensive Performance Report for November. Label each variance as favorable (F) or unfavorable (U). (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.)
Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June. Quarter 1Quarter 2Sales$248,470$251,539Direct material purchases120,295128,832Direct labor76,55374,289Manufacturing overhead26,00024,400Selling and administration expenses33,50033,500Depreciation included in selling and administration expenses 2,000 2,500 Collection from customers230,524220,116Cash payments for purchases114,345118,346 Additional data:Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000. The company has a 15% open line of credit for $70 000 with their bank. Required: a) Use this information to prepare a cash budget for the first two quarters of the year. bi) Briefly comment on Picta Company’s expected cashflow position in the first two quarters of the year.
Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (g) Revenue ($460.00g) Expenses: Wages and salaries ($11,200 + $128.00q) Supplies ($4.00q) Equipment rental ($2,400 + $22.00q) Insurance ($3,900) Miscellaneous ($500 + $1.44q) Total expenses Net operating income 250 $ 115,000 43,200 1,000 7,900 3,900 860 56,860 $ 58,140 During May, the company's actual activity was 240 diving-hours.
mpany EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $27,400. The budgeted expenses for the next three months are as follows: Salaries Utilities 5,200 47,900 January February $63,000 $76,700 $84,900 5,800 6,900 52,200 March 57,500 Other operating expenses Total $116,100 $134,700 $149,300 Other operating expenses include $3,400 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months Ending March 31…
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 Cost per Car Washed $ 0.70 $ 0.09 $ 0.20 $ 0.30 per Month Cleaning supplies Electricity $ 1,400 Maintenance $ 4,500 $ 8,100 $ 2,100 $ 1,400 Wages and salaries Depreciation Rent Administrative expenses $ 0.03 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed.