Walsh Enterprises manufactures tires for the Formula I motor racing circuit. For August, it budgeted to manufacture and sell 3,600 tires at a variable cost of $82 per tire and total fixed costs of $63,000. The budgeted selling price was $116 per tire. Actual results in August were 3,400 tires manufactured and sold at a selling price of $118 per tire. The actual total variable costs were $289,000, and the actual total fixed costs were $59,000. Required 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, and then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (For variances with a 50 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Use parentheses or a minus sign when entering an operating loss.) Actual Results Flexible-Budget Variances Flexible Budget Sales-Volume Variances Static Budget Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Clear all Check answer

Walsh Enterprises manufactures tires for the Formula I motor racing circuit. For August, it budgeted to manufacture and sell 3,600 tires at a variable cost of $82 per tire and total fixed costs of $63,000. The budgeted selling price was $116 per tire. Actual results in August were 3,400 tires manufactured and sold at a selling price of $118 per tire. The actual total variable costs were $289,000, and the actual total fixed costs were $59,000. Required 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, and then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (For variances with a 50 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Use parentheses or a minus sign when entering an operating loss.) Actual Results Flexible-Budget Variances Flexible Budget Sales-Volume Variances Static Budget Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Clear all Check answer

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

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