EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 25, Problem 2BE
To determine
Introduction: A static budget refers to the budget estimated by the management in advance to reflect the future possible activity costs and performance. It is also considered a fixed budget.
To prepare: The static budget report for 2 quarters.
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Students have asked these similar questions
Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed selling and administrative
expenses are as follows:
Variable Expenses:
Power cost
Miscellaneous expenses
Fixed Expenses:
Salaries expense
Rent expense
Depreciation expense
Power cost/fixed portion
Miscellaneous expense/fixed portion
OA. $35,300
OB. $40,300
OC. $22,500
OD. $45,300
(40% of sales)
(10% sales)
$6,000 per month
$4,000 per month
$1,000 per month
$800 per month
$1,000 per month
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6
months of 2020, the following data are available.
1. Sales: 20,300 units quarter 1; 22,000 units quarter 2.
2.
Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.
3.
Fixed costs per quarter: sales salaries $10,200, office salaries $6,160, depreciation $4,730, insurance $1,660, utilities $890,
and repairs expense $610.
4.
Unit selling price: $22.
Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed
expense.)
KIRKLAND COMPANY
Selling and Administrative Expense Budget
Quarter
1
2
Six Months
Bickel 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.)
Chapter 25 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 25 - Prob. 1QCh. 25 - Prob. 2QCh. 25 - Prob. 3QCh. 25 - 4. Ken Bay questions the usefulness of a master...Ch. 25 - Prob. 5QCh. 25 - Prob. 6QCh. 25 - Prob. 7QCh. 25 - Prob. 8QCh. 25 - Prob. 9QCh. 25 - Prob. 10Q
Ch. 25 - Prob. 11QCh. 25 - Prob. 12QCh. 25 - Prob. 13QCh. 25 - Prob. 14QCh. 25 - Prob. 15QCh. 25 - Prob. 16QCh. 25 - Prob. 17QCh. 25 - Prob. 18QCh. 25 - Prob. 19QCh. 25 - Prob. 20QCh. 25 - Prob. 21QCh. 25 - Prob. 22QCh. 25 - Prob. 23QCh. 25 - Prob. 24QCh. 25 - Prob. 25QCh. 25 - Prob. 26QCh. 25 - Prob. 1BECh. 25 - Prob. 2BECh. 25 - Prob. 3BECh. 25 - Prob. 4BECh. 25 - Prob. 5BECh. 25 - Prob. 6BECh. 25 - (LO 3) Torres Company accumulates the following...Ch. 25 - Prob. 8BECh. 25 - Prob. 9BECh. 25 - Prob. 10BECh. 25 - Prob. 11BECh. 25 - Prob. 12BECh. 25 - Prob. 1DIECh. 25 - Prob. 2DIECh. 25 - Prob. 3DIECh. 25 - Prob. 4DIECh. 25 - Prob. 1ECh. 25 - E24-2 Crede Company budgeted selling expenses of...Ch. 25 - Prob. 3ECh. 25 - Prob. 4ECh. 25 - Prob. 5ECh. 25 - Prob. 6ECh. 25 - Prob. 7ECh. 25 - Prob. 8ECh. 25 - Prob. 9ECh. 25 - Prob. 10ECh. 25 - Prob. 11ECh. 25 - Prob. 12ECh. 25 - Prob. 13ECh. 25 - Prob. 14ECh. 25 - Prob. 15ECh. 25 - Prob. 16ECh. 25 - Prob. 17ECh. 25 - Prob. 18ECh. 25 - Prob. 19ECh. 25 - Prob. 20ECh. 25 - Prob. 21ECh. 25 - Prob. 1PSACh. 25 - (LO 2) Zelmer Company manufactures tablecloths....Ch. 25 - Prob. 3PSACh. 25 - Prob. 4PSACh. 25 - Prob. 5PSACh. 25 - Prob. 6PSACh. 25 - Prob. 7PSACh. 25 - Service Green Pastures is a 400-acre farm on the...Ch. 25 - Prob. 2EYCTCh. 25 - Prob. 3EYCTCh. 25 - Prob. 4EYCTCh. 25 - Prob. 5EYCTCh. 25 - Prob. 7EYCT
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