FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,950 units, but its actual level of activity was 5,900 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Fixed element per month Variable element per unit Revenue $ 0 $ 30.40 Direct labor $ 0 $ 6.10 Direct materials 0 9.10 Manufacturing overhead 37,500 1.80 Selling and administrative expenses 26,700 1.30 Total expenses $ 64,200 $ 18.30 Actual results for October: Revenue $ 178,595 Direct labor $ 34,010 Direct materials $ 52,300 Manufacturing overhead $ 48,275 Selling and administrative expenses $ 34,170 The activity variance for selling and administrative expenses in October would be closest to:arrow_forwardBickel 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.)arrow_forwardPiechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,600 units, but its actual level of activity was 6,550 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue - $ 34.10 Direct labor $ 0 $ 6.10 Direct materials 0 13.70 Manufacturing overhead 36,000 1.60 Selling and administrative expenses 25,400 0.80 Total expenses $ 61,400 $ 22.20 Actual results for May: Revenue $ 224,900 Direct labor $ 39,870 Direct materials $ 91,500 Manufacturing overhead $ 43,000 Selling and administrative expenses $ 30,460 The revenue variance for May would be closest to:arrow_forward
- Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 4,100 client-visits, but its actual level of activity was 4,030 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue - $ 44.70 Personnel expenses $ 35,900 $ 13.30 Medical supplies 1,600 5.30 Occupancy expenses 11,600 2.20 Administrative expenses 5,400 0.20 Total expenses $ 54,500 $ 21.00 Actual results for December: Revenue $ 178,885 Personnel expenses $ 88,515 Medical supplies $ 22,515 Occupancy expenses $ 19,960 Administrative expenses $ 6,290 The activity variance for administrative expenses in December would be closest to:arrow_forwardThe following budgeted data pertain to Zee Corporation for the month of Janua Quantity (Q) Static Budget 15,000 Tir Sales Revenue (13Q) $195,000 Variable Manufacturing Cost (4Q) 60,000 Fixed Manufacturing Cost 30,000 Variable Selling and Administrative Expenses (1Q) 15,000 Fixed Selling and Administrative Expenses 15,000 Zee Corporation incurred the following costs during the month: Actual Quantity (Q) 13,500 Sales Revenue $189,000 Variable Manufacturing Cost 56,000 Fixed Manufacturing Cost 30,000 Variable Selling and Administrative Expenses 13,500 Fixed Selling and Administrative Expenses 15,000 The activity variance for Variable Manufacturing cost for January is: O a. $4,000 F O b. $6,000 F O c. $4,000 U O d. $6,000 Uarrow_forwardAssume that a company provided the following excerpts of information from its flexible budget performance report: Actual Flexible Planning Results Budget Budget Flights (q) 52 ? ? Expenses: Wages and salaries ($4,000 + $88.00q) $ 8,510 ? $ 8,400 What is the spending variance for wages and salaries expense? $66 U $176 F $176 U $66 Farrow_forward
- Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,280 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January. Data used in budgeting: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses. Total expenses Actual results for January: Fixed element Variable element per month. $0 $ 27,300 1,300 10,300 6,300 $ 45,200 $ 124,680 $ 72,030 $ 22,706 per client-visit $35.30 $ 11.30 5.30 1.00 0.40 $18.00 Revenue Personnel expenses Medical supplies Occupancy expenses $ 14,630 Administrative expenses $ 8,135 The activity variance for net operating income in January would be closest to:arrow_forwardRoger Company’ sells one product, and has provided the following variable and fixed estimates for budgetingpurposes.Variable element per unit Fixed element per monthRevenue $25Operating costs $4.75 $3,150For the month of August, it planned on selling 200 units, but actual units sold were 180 units. Actual revenuefor the month was $4,410 and actual operating costs were $3,865. c. Find the activity variance for revenue and operating costs for August. What would these variancesindicate? d. Find the revenue and spending variance for revenue and operating costs for August. What would thesevariances indicate?arrow_forwardNonearrow_forward
- Please do not give solution in image format thankuarrow_forwardDinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 4,000 tenant-days, but its actual level of activity was 4,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Fixed element per month Variable element per tenant-day Revenue 0 $ 34.90 Wages and salaries $ 2,900 $ 7.90 Food and supplies 1,900 14.40 Facility expenses 8,400 3.40 Administrative expenses 6,900 0.40 Total expenses $ 20,100 $ 26.10 Actual results for March: Revenue $ 131,231 Wages and salaries $ 28,590 Food and supplies $ 60,575 Facility expenses $ 21,800 Administrative expenses $ 7,099 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance…arrow_forwardOsprey Cycles, Inc. projected sales of 58,505 bicycles for the year. The estimated January 1 inventory is 4,668 units, and the desired December 31 inventory is 7,430 units. What is the budgeted production (in units) for the year? a. _______________ unitsarrow_forward
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