Rooney Company has provided the following for the year: Budget Sales $ 519,000 Variable product costs 197,000 Variable selling expense 41,000 Other variable expenses 3, 300 Fixed product costs 16, 500 Fixed selling expense 24,300 Other fixed expenses 1,300 Interest expense 750 Variances Sales 8, 400 U Variable product costs 4, 600 F Variable selling expense 1,800 U Other variable expenses 1,400 U Fixed product costs 270 F Fixed selling expense 420 F Other fixed expenses 100 U Interest expense 110 F 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

Rooney Company has provided the following for the year: Budget Sales $ 519,000 Variable product costs 197,000 Variable selling expense 41,000 Other variable expenses 3, 300 Fixed product costs 16, 500 Fixed selling expense 24,300 Other fixed expenses 1,300 Interest expense 750 Variances Sales 8, 400 U Variable product costs 4, 600 F Variable selling expense 1,800 U Other variable expenses 1,400 U Fixed product costs 270 F Fixed selling expense 420 F Other fixed expenses 100 U Interest expense 110 F 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 6PB: Using the information for Lighthizer Trading Company, prepare the income statement to include all...

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Using the information for Lighthizer Trading Company, prepare the income statement to include all costs, but separate out uncontrollable costs. Insert subtotals where appropriate (include one for operating income) before the uncontrollable costs. Income tax expense should be based on all expenses (that is, it will be the same amount as in the previous exercise). Calculate net income, profit margin, ROI, and RI excluding uncontrollable expenses. Prepare a short response to accompany the income statement that explains why uncontrollable costs are separated in the income statement.
Using the information from BDS Enterprises, prepare the income statement to include all costs, but separate out uncontrollable costs. Insert subtotals where appropriate (include one for operating income) before the uncontrollable costs. Income tax expense should be based on all expenses (that is, it will be the same amount as in question 1). Calculate net income, profit margin, ROI, and RI, excluding uncontrollable expenses. Prepare a short response to accompany the income statement that explains why uncontrollable costs are separated in the income statement.
Budgeted operating income includes: * A. budgeted interest expense B. budgeted income taxes. C. budgeted net income D. budgeted cost of goods sold
Identification 1. A projection of sales of a product or service expressed either in units or absolute monetary value 2. A budget that outlines planned expenditures for nonmanufacturing activities. 3.
Which of the following is true with respect to the sales budget? Group of answer choices It provides sales data to prepare the budgeted income statement. It captures the variable and fixed expenses of the business. It has no relation with the production budget. It provides sales data to prepare income statements for stockholders and creditors.
Which of the following is a measure of a cost center manager's performance? Oa. return on investment and residual income measures Ob. balance sheet Oc. budget performance report Od. divisional income statements
1. Match each of the following terms with the appropriate definition. The difference between actual and budgeted revenue or cost caused by the difference between the actual number of units sold or used and the budgeted number of units. A budget prepared after an operating period is complete in order to help managers evaluate past performance; uses fixed and variable costs in determining total costs. The costs that should be incurred under normal conditions to produce a specific product or to perform a specific service. The difference between 1. Cost Variance total overhead cost that would have been expected if the actual operating 2. Volume Variance volume had been accurately predicted and 3. Price Variance the amount of overhead cost that was allocated to products using the predetermined standard overhead rate. 4. Quantity Variance 5. Standard Costs A planning budget based on a single predicted amount 6. Fixed Budget of sales or production volume; unsuitable for 7. Flexible Budget…
Which of the following appears on the budgeted balance sheet? * A. estimated sales B. estimated cost of goods sold C. estimated fixed selling expense D. estimated ending accounts receivable
Sales budget is a forecast expressed in Select one: a. Quality and Money O b. None of the above c. Units and Money O d. Taxes to be paid on sales revenue
Q.Prepare a budgeted income statement (ignore income taxes).
Which method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFO
Q.Suppose Mountain Outfitters uses cost of merchandise to allocate all S, G & A costs. Prepare budgeted product-line and total company income statements.