Required: 1. What was the actual operating income for the period? 2. What was the company's master budget operating income for the period? 3. (a) What was the total master budget variance, in terms of operating income, for the period? (b) Is this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell.) 4. The total master budget variance for a period can be decomposed into a total flexible budget variance and a sales volume variance. (a) What was the total flexible-budget variance for the period? (b) Was this variance favorable or unfavorable? (c) What was the sales volume variance for the period? (d) Was this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell.)

Required: 1. What was the actual operating income for the period? 2. What was the company's master budget operating income for the period? 3. (a) What was the total master budget variance, in terms of operating income, for the period? (b) Is this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell.) 4. The total master budget variance for a period can be decomposed into a total flexible budget variance and a sales volume variance. (a) What was the total flexible-budget variance for the period? (b) Was this variance favorable or unfavorable? (c) What was the sales volume variance for the period? (d) Was this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. A. In the correct format, prepare the income statement using the following information: B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. C. Prepare a short response to accompany the income statement that explains why uncontrollable costs are included in the income statement.
During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
a. Calculate the cost of goods manufactured for the year by Gopaul Electronics b.) Prepare an income statement for Gopaul Electronics for the year ended December 31, 2023, clearly showing the calculation of Cost of Goods Sold. List the non-production overheads in order of size starting with the largest. c) What is the selling price per switch if Gopaul Electronics manufactured 1,500 switches for the period under review and uses a mark-up of 33⅓% on cost?
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Required:1. Calculate Lone Oak’s manufacturing overhead for the year.2. Calculate Lone Oak’s cost of goods manufactured.3. Compute the company’s cost of goods sold.4. Determine net income for 20x1, assuming a 30% income tax rate.5. Determine the number of completed units manufactured during the year.6. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: indirect labor is $115,000 and other factory costs amount to $516,000.
Using the data above, complete the following statements and schedules for the first quarter: 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet as of March 31. Answer choices for Income Statment [rows 1, 9-15, 17]: (Accounts payable, Accounts receivable, Advertising, Buildings and equipment net, Cash, Common stock, Cost of goods sold, Depreciation, Interest expense, Note payable, Other expenses, Prepaid insurance, Rent, Retained earnings, Salaries and wages, Sales, Shipping) [Rows 3-6]: (Beginning inventory, Ending inventory, Goods available for sale, Purchases) Row 7: (Gross Loss, Gross margin) Row 16: (Net operating income, Net operating loss) Row 18: (Net income, Net loss) Answer Choices for Balance sheet (all rows) (Accounts payable, Accounts receivable, Buildings and equipment net, Cash, Common stock, Cost of goods sold, Interest expense, Inventory, Note payable, Prepaid insurance, Retained earnings)
Selected data concerning the past year’s operations of the Ozarks Manufacturing Company are as follows: Required:1. What was the cost of raw materials purchased during the year?2. What was the direct-labor cost charged to production during the year?3. What was the cost of goods manufactured during the year?4. What was the cost of goods sold during the year?
Direct labour Sales Selling expenses Raw (direct) materials on hand: January 1 December 31 General and administrative expenses Finished goods: January 1 Work-in-process: January 1 December 31 Direct materials purchases Depreciation: factory Indirect labour Indirect materials used Marketing promotions Factory taxes Utilities Courier costs (office) Miscellaneous plant overhead Plant repairs and maintenance Customer service costs Fire insurance: factory equipment Materials handling costs $ 30,000 400,000 50,000 8,000 4,000 18,000 25,000 19,000 18,000 47,000 20,000 3,000 7,000 1,500 11,000 20,000 900 4,000 9,000 3,000 3,000 8,000
Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow: Maintenance Machine Month Cost Hours $ 4,200 Jan. 480 Feb. 3,000 320 Mar. 3,600 400 Apr. 2,820 300 May 4,350 500 June 2,960 310 July 3,030 320 Aug. 4,470 520 Sept. 4,260 490 Oct. 4,050 470 Nov. 3,300 350 Dec. 3,160 340 Sum $43, 200 4,800 $ 3,600 $ $ $ 684.65 Average 400 Average cost per hour a (intercept) b (coefficient) 9.00 7.2884 Standard error of the estimate 34.469 R-squared 0.99724 t-value for b 60.105 At 400 hours of activity, Armer management can be approximately two-thirds confident that the maintenance costs will be in the range of
Compute the Cost of Goods Manufactured and Cost of Goods Sold for West Nautical Company for the most recent year using the amounts described next. Assume that Raw Materials Inventory contains only direct materials. (Click the icon to view the data.) Calculation of Cost of Goods Manufactured For Current Year Plus: Manufacturing costs incurred Less: Cost of goods manufactured Now calculate the cost of goods sold. West Nautical Company Calculation of Cost of Goods Sold For Current Year Plus: Less: Data table \table[[, \table[[Beginning], [of Year]], \table[[\table[[End of], [Year]]], [$,27,000 Data table 0 Beginning of Year End of Year Raw materials inventory..... 25,000 $ 27,000 Insurance on plant End of Year $ 10,000 Work in process inventory. $ Finished goods inventory... $ 36,000 $ 20,000 $ 30,000 28,000 Depreciation-plant building and equipment Repairs and maintenance-plant ... $ 13,100 $ 4,400 Purchases of direct materials .... 78,000 Marketing expenses $ 81,000 Le Direct labor..…
Ramesh Abdul Industries Presents you the following data relating to the operations for the year ended on June 30, 2013.Required:Prepare cost of goods Manufactured and sold statement.