FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Concept explainers
Topic Video
Question
thumb_up100%
Budget Performance Reports for Cost Centers
Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow:
| Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 |
||||||||
| Plant | Budget | Actual | Over Budget | Under Budget | ||||
| Eastern Region | $368,100 | $368,100 | $0 | |||||
| Central Region | 265,000 | 262,400 | (2,600) | |||||
| Western Region | (g) | (h) | (i) | |||||
| $(j) | $(k) | $(l) | $(2,600) |
| Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 |
||||||||
| Department | Budget | Actual | Over Budget | Under Budget | ||||
| Chip Fabrication | $(a) | $(b) | $(c) | |||||
| Electronic Assembly | 73,000 | 73,950 | 950 | |||||
| Final Assembly | 116,070 | 115,140 | $(930) | |||||
| $(d) | $(e) | $(f) | $(930) |
| Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30 |
||||||||
| Cost | Budget | Actual | Over Budget | Under Budget | ||||
| Factory wages | $30,480 | $32,610 | $2,130 | |||||
| Materials | 66,570 | 66,100 | $(470) | |||||
| Power and light | 3,590 | 4,270 | 680 | |||||
| Maintenance | 8,010 | 8,770 | 760 | |||||
| $108,650 | $111,750 | $3,570 | $(470) |
a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.
| a. $ | g. $ |
| b. $ | h. $ |
| c. $ | i. $ |
| d. $ | j. $ |
| e. $ | k.$ |
| f. $ | l. $ |
b. Complete the following memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November.
MEMO
To: Cassandra Reid, Vice President of Production
The (Eastern, Central or Western) plant has experienced a budget overrun. Its budget reveals that the (Chip Fabrication, Electronic Assembly, or Final Assembly) Department caused the majority of the budget overrun. The supervisor of the (Chip Fabrication, Electronic Assembly, or Final Assembly) Department should investigate the reasons for the budget overruns in (factory wages, materials and maintenance) (materials, power and light, and maintance) or (factory wages, power and light, and maintenance.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow: Delmar Company Budget Performance Report-Vice President, Production For the Month Ended June 30 Plant Actual Budget Over Budget (Under) Budget Eastern Region $490,800 $490,800 $0 Central Region 349,900 353,400 (3,500) Western Region (g) (h) (i) $(j) $(k) $(I) $(3,500) Delmar Company Budget Performance Report–Manager, Western Region Plant For the Month Ended June 30 Department Actual Budget Over Budget (Under) Budget Chip Fabrication $(a) $(b) $(c) Electronic Assembly 69,240 68,350 890 Final Assembly 109,160 110,040 $(880) $(d) $(e) $(f) $(880) Delmar Company Budget Performance Report–Supervisor, Chip Fabrication For the Month Ended June 30 Cost Actual Budget Over Budget (Under) Budget Factory wages $25,800 $24,110 $1,690arrow_forwardStatic Budget versus Flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Wages Utilities $2,250,000 72,000 36,000 $2,358,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced $1,600,000 40,000 1,950,000 48,000 2,200,000 52,000 Hagerstown Company Machining Department Monthly Production Budget Depreciation Total May June July The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-July have been significantly less than the monthly static budget of $2,358,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:…arrow_forwardBudget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland CompanyBudget Performance Report—Vice President, ProductionFor the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $553,800 $553,800 $0 Central Region 398,700 394,700 $4,000 Western Region (g) (h) (i) $(j) $(k) $(l) $2,700 Garland CompanyBudget Performance Report—Manager, Western Region PlantFor the Month Ended November 30 Department Actual Budget Over Budget Under Budget Chip Fabrication $(a) $(b) $(c) Electronic Assembly 68,450 69,340 890 Final Assembly 109,520 108,640 $880 $(d) $(e) $(f) $3,580 Garland CompanyBudget Performance Report—Supervisor, Chip FabricationFor the Month Ended November 30 Cost Actual Budget Over Budget Under Budget Factory wages $26,430…arrow_forward
- Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,480 $211,540 Direct material purchases 115,300 120,832 Direct labor 75,205 73,298 Manufacturing overhead 25,300 25,400 Selling and administrative expenses 33,400 33,500 Depreciation included in selling and administrative 1,500 900 Collections from customers 215,392 240,154 Cash payments for purchases 114,290 119,254 Additional data:Capital assets were sold in January for $10,000 and $4,400 in May.Dividends of $4,600 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster CompanyCash BudgetFor the First Two Quarters Quarter 1 Quarter 2 $Beginning Cash Balance $Beginning Cash Balance Add: Cash Receipts Collections from Customers…arrow_forwardStatic budget versus flexible budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Line Item Description Amount Wages $1,284,000 Utilities 61,000 Depreciation 102,000 Total $1,447,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Month Amount Spent Units Produced May $1,363,000 124,000 June 1,300,000 113,000 July 1,240,000 102,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for May–July have been significantly less than the monthly static budget of 1,447,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining…arrow_forwardQuestion Content Area At the beginning of the period, the Cutting Department budgeted direct labor of $131,000, direct materials of $151,000 and fixed factory overhead of $11,400 for 7,600 hours of production. The department actually completed 11,900 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. a. $452,953 b. $299,850 c. $293,400 d. $459,403arrow_forward
- Miller manufacturing Company’s budgeted income statement includes the following data: Miller manufacturing Company March April May June Sales 120 000 90 000 95 000 100 000 Commission expense 18 000 13 500 14 250 15 000 Salary expense 30 000 30 000 30 000 30 000 Miscellaneous expense 4 800 3 600 3 800 4 000 Rent expense 3 000 3 000 3 000 3 000 Utilities expense 1 900 1 900 1 900 1 900 Insurance expense 2 100 2 100 2 100 2 100 All sales are made on a cash basis. The budget assumes that 60% of commission expenses are paid in the month they were incurred and the remaining 40% are paid one month later. 50% of salary expenses are paid in the month incurred and the remaining 50% are paid one month later. Miscellaneous expense, rent expense and utility expense are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on 1 January. The cash balance at 1 April was $ 15 500. Use the table below to prepare a cash budget for each of the months April,…arrow_forwardSubject: accountingarrow_forwardDo not give image formatarrow_forward
- The following information is available for Brownstone Products Company for the month of July: Master Actual Budget 4, eee $ 60,000 16, e00 Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses 3,8ee $ 53,600 19,400 14,300 8,100 9,see 13, 30e 8, e00 9,400 Required: 1. What was the master budget varidnce for July? Was this variance favorable or unfavorable? 2. Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin and in terms of operating income. 4. Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flexible budiget for each of the following two output levels: a. 3,790 units. b. 4,190 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 .. Nextarrow_forwardRelevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,539 Direct material purchases 115,290 120,832 Direct labor 75,205 73,299 Manufacturing overhead 25,400 25,400 Selling and administrative expenses 33,400 33,400 Depreciation included in selling and administrative 1,400 1,100 Collections from customers 215,391 240,154 Cash payments for purchases 114,300 119,253 Additional data:Capital assets were sold in January for $9,000 and $4,600 in May.Dividends of $4,400 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $58,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Beginning Cash Balance $fill in the blank 2 $fill in the blank 3 Add: Cash Receipts Collections from…arrow_forwardPartially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland CompanyBudget Performance Report—Vice President, ProductionFor the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $556,400 $556,400 $0 Central Region 400,600 396,600 $4,000 Western Region (g) (h) (i) $(j) $(k) $(l) $2,870 Garland CompanyBudget Performance Report—Manager, Western Region PlantFor the Month Ended November 30 Department Actual Budget Over Budget Under Budget Chip Fabrication $(a) $(b) $(c) Electronic Assembly 68,850 69,750 900 Final Assembly 110,850 109,960 $890 $(d) $(e) $(f) $3,760 Garland CompanyBudget Performance Report—Supervisor, Chip FabricationFor the Month Ended November 30 Cost Actual Budget Over Budget Under Budget Factory wages $25,940 $27,760 $1,820 Materials 68,690 68,210…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education