Susan Corporation started the year expecting to produce and sell 117,000 units of its super-insulating coffee mugs, but it ended theyear having produced and sold even more than that-129,000 units. Needless to say, owners Eli and his sister Anna were thrilled tohave exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to seethe final year-end financial statements and share the great news with their crew. The actual results, along with the original masterbudget for the year, are as follows.SalesVariable costs:DMDLVariable-MOHVariable SG&AContribution marginFixed costs:Fixed-MOHFixed SG&AOperating incomeActual Income$2,560,650389,064621.264268,320122,5501,159,452442,728436,500$280,224Flexible BudgetMaster Budget$2,357,550351,000561,600210,600111,1501,123,200421,200409,000$293,000In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts. Conduct a detailed variance analysis for all product costs (price, efficiency, and volume variances), taking the following details into consideration.●The company purchased and used 268,320 pounds of DM.36,120 DL hours were used.Price varianceEfficiency variancePrice varianceVolume variance$$$$21528DMFavorableUnfavorableFixed-MOHUnfavorableFavorable$DLUnfavorableFavorable$$Variable-MOHUnfavorableUnfavorable

Variance analysis is the method of evaluating and studying the deviation that arises while comparing…

Answered: Susan Corporation started the year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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S. Liang Inc. is a new concept on-line store that has proven to be very popular in the past year. Mrs. Liang and her team worked very hard in the past year in developing the brand and she indicated that she spent approximately $5,000,000 in a large marketing and customer service initiative. In an article published in December 2016, the business journal has indicated that their brand name is estimated to be worth $12,000,000 based on an analysis they performed. On their balance sheet for December 31, 2016, Liang Inc should record: a) An intangible asset worth $5,000,000 b) An intangible asset worth $7,000,000 c) An intangible asset worth $12,000,000 d) No intangible asset should be recorded at December 31, 2016.
[The following information applies to the questions displayed below.] Mears and Company has been operating for five years as an electronics component manufacturer specializing in cellular phone components. During this period, it has experienced rapid growth in sales revenue and in inventory. Mr. Mears and his associates have hired you as Mears's first corporate controller. You have put into place new purchasing and manufacturing procedures that are expected to reduce inventories by approximately one-third by year-end. You have gathered the following data related to the changes: Inventory (dollars in thousands) Beginning of Year $585,700 End of Year (projected) $392,310 Current Year Cost of goods sold P7-7 Part 1 (projected) $7,018,984 Required: 1. Compute the inventory turnover ratio based on two different assumptions: Note: Round your answers to 1 decimal place. a. Those presented in the above table (a decrease in the balance in inventory). b. No change from the beginning-of-the-year…
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In 1990, Saks 5th avenue was considering to open an outlet store similar to Nordstrom Rack stores. Saks's revenue was $1.24 billion in 1989 and they expected it to grow each year by 5% for the next five years. They expected the outlet store to cost $400 million initially and have a steady revenue of $300 million each year for 5 years. However, they were also worried that the outlet store would attract some of their existing customers. They estimated A-$789 millions B-$358 millions C-$212 millions D-$198 millions
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