Performance Evaluation; ChCABILIDE 1o (Migu, riepanny envie vuugel pervane repicuriLewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showingvariances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or novariance.)Sales (units produced and sold)Sales (in dollars)Variable costsFixed costsFor Month Ended May 31SalesVariable costsContribution marginFixed costsIncomeFixed Budget1,240$ 500 per unit$ 200 per unit$ 131,000LEWIS COMPANYFlexible Budget Performance ReportFlexible Budget Actual Results Variances(1,440 units) (1.440 units)< Prev7 of 15Actual Results1,440$735,000$ 300,000$ 126,000Favorable/UnfavorableFavorableUnfavorableFavorableFavorableFavorableCheck my workNext >

A budget is the estimation of financial plan. It would be prepared on the basis of the past…

Lewis Company reports the following fixed budget and actual res variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Sales (units produced and sold) Sales (in dollars) Variable costa Fixed costs For Month Ended May 31 Sales Variable costs Contribution margin Fixed costs Income Fixed Budget 1,240 $500 per unit $200 per unit $ 131,000 LEWIS COMPANY Flexible Budget Performance Report. Flexible Budget Actual Results (1,440 units) (1,440 units) Variances Actual Results 1,440 $ 735,000 $ 300,000 $ 126,000 Favorable/Unfavorable Favorable Unfavorable Favorable Favorable Favorable

Lewis Company reports the following fixed budget and actual res variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Sales (units produced and sold) Sales (in dollars) Variable costa Fixed costs For Month Ended May 31 Sales Variable costs Contribution margin Fixed costs Income Fixed Budget 1,240 $500 per unit $200 per unit $ 131,000 LEWIS COMPANY Flexible Budget Performance Report. Flexible Budget Actual Results (1,440 units) (1,440 units) Variances Actual Results 1,440 $ 735,000 $ 300,000 $ 126,000 Favorable/Unfavorable Favorable Unfavorable Favorable Favorable Favorable

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 29BEB: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...

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Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Sales Variable expenses: Fixed expenses: $ ROONEY COMPANY Internal Income Statement Budget 0 0 0 $ Actual 0 0 0 Variance Effect
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Marla Baldwin was a blt anxlous as she created the year-end performance reports. She remembered how management had hoped the economy would make a favorable turn, taking pressure off consumers so they'd feel more comfortable spending on the company's splurge Item-a luxurious hooded cotton robe. Alas, actual production and sales ended at 5,100 units, a whopping 1,000 units shy of the company's original budget. The following Information presents the company's actual Income statement and other key Information for Marla. Sales Varlable costs: DM Actual Income DL Varlable-MOH Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating Income Standards are as follows. Direct materials Direct labor Variable-MOH Fixed-MOH $800,700 Selling price Fixed SGSA expense 172,125 (for 11,475 yards purchased and used) 75,276 (for 3,672 hours used) 45,900 O Search 507,399 170,978 243,100 Standard Quantity per Unit 2.30 yards 0.70 DL hours $93.321 Additional master budget Information: 2.30 yards 2.30…
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John Richardson is the manufacturing production supervisor for Benson Tool Works, a company that manufactures hand tools for mechanics. Trying to explain why he did not get the year-end bonus that he had expected, he told his wife, "This is the dumbest place I've ever worked. Last year the company set up this budget assuming it would sell 150,600 units. Well, it sold only 140,600. The company lost money and gave me a bonus for not using as much materials and labor as was called for in the budget. This year, the company has the same 150,600 units goal and it sells 160,600. The company's making all kinds of money. You'd think I'd get this big fat bonus. Instead, management tells me I used more materials and labor than was budgeted. They said the company would have made a lot more money if I'd stayed within my budget. I guess I gotta wait for another bad year before I get a bonus. Like I said, this is the dumbest place I've ever worked." Benson's master budget and the actual results for…
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