All Related Questions of Flexible Budget

Q: Branson Manufacturing, Inc., produces a single type of small motor

Branson Manufacturing, Inc., produces a single type of small motor. The bookkeeper who does not have an in-depth understanding of accounting principles prepared the following performance report with t...

Q: Use the information in Figure 7-12 of the chapter.

Use the information in Figure 7-12 of the chapter. Required: Prepare flexible budgets for the production and sale of 29,000 units and 31,000, respectively.

Q: Presented below are the monthly factory overhead cost budget (at normal

Presented below are the monthly factory overhead cost budget (at normal capacity of 5,000 units or 20,000 direct labor hours) and the production and cost data for a month. The predetermined overhead r...

Q: Why is a flexible budget better than a master budget for comparing

Why is a flexible budget better than a master budget for comparing actual results to budgeted expectations?

Q: In comparing actual sales revenue to flexible budget sales revenue, would

In comparing actual sales revenue to flexible budget sales revenue, would it be possible to have a favorable variance and still not have met revenue expectations?

Q: Using the following per-unit and total amounts, prepare a

Using the following per-unit and total amounts, prepare a flexible budget at the 14,000-, 15,000-, and 16,000-unit levels of production and sales for Celestial Products, Inc.: Selling price per unit ....

Q: Strand Manufacturing, Inc., has the following flexible budget formulas and

Strand Manufacturing, Inc., has the following flexible budget formulas and amounts: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25 per...

Q: Solar Panels, Inc., has the following items and amounts as

Solar Panels, Inc., has the following items and amounts as part of its master budget at the 10,000-unit level of sales and production: Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: Tom Kemper is the controller of the Wichita manufacturing facility of Prudhom

Tom Kemper is the controller of the Wichita manufacturing facility of Prudhom Enterprises, Inc. The annual cost control report is one of the many reports that must be fi led with corporate headquarter...

Q: Boyne University offers an extensive continuing education program in many cities throughout

Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university ope...

Q: The Little Theatre is a nonprofit organization devoted to staging plays for

The Little Theatre is a nonprofit organization devoted to staging plays for children. The theater has a very small full-time professional administrative staff. Through a special arrangement with the a...

Q: Question: Refer to the data for Lavage Rapide in Exercise 10

Refer to the data for Lavage Rapide in Exercise 10–8. The company actually washed 8,800 cars in August. / For example, electricity costs are $1,200 per month plus $0.15 per car washed. The c...

Q: Refer to the data for Lavage Rapide in Exercises 10–8

Refer to the data for Lavage Rapide in Exercises 10–8 and 10–10. Data from Exercises 10–8 and 10–10. Required: Prepare a flexibl...

Q: AirQual Test Corporation provides on-site air quality testing services.

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations: The company uses the number of jobs as its measure of ac...

Q: The Gourmand Cooking School runs short cooking courses at its small campus

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports—the numbe...

Q: Packaging Solutions Corporation manufactures and sells a wide variety of packaging products

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for t...

Q: Puget Sound Divers is a company that provides diving services such as

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:...

Q: Flight Café is a company that prepares in-flight meals for

Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company’s planning budget for July appears belo...

Q: Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears...

Q: Vulcan Flyovers offers scenic overflights of Mount St. Helens, the

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appe...

Q: The St. Lucia Blood Bank, a private charity partly supported

The St. Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of St. Lucia. The blood bank has just finished its operations for September, which...

Q: Milano Pizza is a small neighborhood pizzeria that has a small area

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determi...

Q: TipTop Flight School offers flying lessons at a small municipal airport.

TipTop Flight School offers flying lessons at a small municipal airport. The school’s owner and manager has been attempting to evaluate performance and control costs using a variance...

Q: What does a flexible budget performance report do that a simple comparison

What does a flexible budget performance report do that a simple comparison of budgeted to actual results does not do?

Q: How does a flexible budget based on two cost drivers differ from

How does a flexible budget based on two cost drivers differ from a flexible budget based on a single cost driver?

Q: The standard cost card for the single product manufactured by Cutter,

The standard cost card for the single product manufactured by Cutter, Inc., is given below: Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the yea...

Q: What is a flexible budget and how does it differ from a

What is a flexible budget and how does it differ from a static planning budget?

Q: Trico Company set the following standard unit costs for its single product

Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $4 per Ib.) . . . . . . . . . . . . . . . . . $120.00 Direct labor (5 hrs. @ $14 per hr.) . . ....

Q: Refer to the information in Problem 8-3A. Phoenix Company’s

Refer to the information in Problem 8-3A. Phoenix Company’s actual income statement for 2013 follows. Required1. Prepare a flexible budget performance report for 2013. Analysis Co...

Q: Kegler Company has set the following standard costs per unit for the

Kegler Company has set the following standard costs per unit for the product it manufactures. Direct materials (15 Ibs. @ $4 per Ib.). . . . . . . . . . . $ 60.00 Direct labor (3 hrs. @ $15 per hr.)...

Q: Kryll Company set the following standard unit costs for its single product

Kryll Company set the following standard unit costs for its single product. Direct materials (25 Ibs. @ $4 per Ib.) . . . . . . . . . . . . . . . . . . . $100.00 Direct labor (6 hrs. @ $8 per hr.) ....

Q: Refer to information in Problem 8-1B. In

Refer to information in Problem 8-1B. In Problem 8-1B Kryll Company set the following standard unit costs for its single product. Direct materials (25 Ibs. @ $4 per Ib.) . . . . . . . . . . . . . ....

Q: Refer to the information in Problem 8-3B. Tohono Company’s

Refer to the information in Problem 8-3B. Tohono Company’s actual income statement for 2013 follows. In Problem 8-3B Tohono Company’s 2013 master budget included...

Q: Guadelupe Company has set the following standard costs per unit for the

Guadelupe Company has set the following standard costs per unit for the product it manufactures. Direct materials (10 lbs. @ $3.00 per lb.) . . . . . . . . . . . $30.00 Direct labor (4 hr. @ $6 per h...

Q: Beech Company sold 105,000 units of its product in May

Beech Company sold 105,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fixed costs, $300,000....

Q: Based on predicted production of 24,000 units, a company

Based on predicted production of 24,000 units, a company anticipates $300,000 of fixed costs and $246,000 of variable costs. If the company actually produces 20,000 units, what are the flexible budget...

Q: Refer to information in QS 8-14. Assume that actual

Refer to information in QS 8-14. Assume that actual sales are $480,000, actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000. Prepare a flexible budget per...

Q: Fogel Co. expects to produce 116,000 units for the

Fogel Co. expects to produce 116,000 units for the year. The company’s flexible budget for 116,000 units of production shows variable overhead costs of $162,400 and fixed overhead costs of $124,000. F...

Q: Brodrick Company expects to produce 20,000 units for the year

Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed cost...

Q: Success Systems’ second quarter 2014 fixed budget performance report for its computer

Success Systems’ second quarter 2014 fixed budget performance report for its computer furnitureoperations follows. The $156,000 budgeted expenses include $108,000 in variable expense...

Q: Identify the main purpose of a flexible budget for managers.

Identify the main purpose of a flexible budget for managers.

Q: What type of analysis does a flexible budget performance report help management

What type of analysis does a flexible budget performance report help management perform?

Q: Prepare a flexible budget performance report title (in proper form)

Prepare a flexible budget performance report title (in proper form) for Spalding Company for the calendar year 2013. Why is a proper title important for this or any report?

Q: Solitaire Company’s fixed budget performance report for June follows. The $

Solitaire Company’s fixed budget performance report for June follows. The $315,000 budgeted expenses include $294,000 variable expenses and $21,000 fixed expenses. Actual expenses in...

Q: Bay City Company’s fixed budget performance report for July follows. The

Bay City Company’s fixed budget performance report for July follows. The $647,500 budgeted expenses include $487,500 variable expenses and $160,000 fixed expenses. Actual expenses in...

Q: Sedona Company set the following standard costs for one unit of its

Sedona Company set the following standard costs for one unit of its product for 2013. Direct material (20 Ibs. @ $2.50 per Ib.) . . . . . . . . . . . . . . . . . . $ 50.00 Direct labor (10 hrs. @ $8....

Q: Refer to the information from Exercise 8-6. Compute and

Refer to the information from Exercise 8-6. Compute and interpret the following. 1. Variable overhead spending and efficiency variances. 2. Fixed overhead spending and volume variances. 3. Controllabl...

Q: Toby Manufacturing produces three different products in the same plant and uses

Toby Manufacturing produces three different products in the same plant and uses a job order costing system to estimate product costs. A flexible budget is used to forecast overhead costs. Total budget...

Q: Adrian and Pells (AP) is an advertising agency that uses

Adrian and Pells (AP) is an advertising agency that uses flexible budgeting for both planning and control. One of its clients, Troika Toys, asked AP to prepare an ad campaign for a new toy. APâ&...

Q: The sales department of a cellular phone company pays its salespeople $

The sales department of a cellular phone company pays its salespeople $1,500 per month plus 25 percent of each new subscriber’s first month’s billings. A new subscriber’s first-month bill averages $80...

Q: Artco manufactures fiberglass home and office planters in a variety of decorator

Artco manufactures fiberglass home and office planters in a variety of decorator colors. These planters, in three sizes, are used to hold indoor plants. Overhead is allocated based on the standard pou...

Q: Spa Ariana promotes itself as an upscale spa offering a variety of

Spa Ariana promotes itself as an upscale spa offering a variety of treatments, including massages, facials, and manicures, performed in a luxurious setting by qualified therapists. The owners of Spa A...

Q: Scion Corp. manufactures earth-moving equipment. Department A303 produces

Scion Corp. manufactures earth-moving equipment. Department A303 produces a number of small metal parts for the equipment, including specialized screw products, rods, frame fittings, and some engine p...

Q: New York Fashions owns 87 women’s clothing stores in shopping malls.

New York Fashions owns 87 women’s clothing stores in shopping malls. Corporate headquarters of New York Fashions uses flexible budgets to control the operations of each of the stores...

Q: Taylor designs and manufactures high-performance bicycle chains for professional racers

Taylor designs and manufactures high-performance bicycle chains for professional racers and serious amateurs. Two new titanium chain sets, the Challenger and the Tour, sell for €110 a...

Q: Picture Maker is a freestanding photo kiosk consumers use to download their

Picture Maker is a freestanding photo kiosk consumers use to download their digital photos and make prints. Shashi Sharma has a small business that leases several Picture Makers from the manufacturer...

Q: Adrian Power manufactures small power supplies for car stereos. The company

Adrian Power manufactures small power supplies for car stereos. The company uses flexible budgeting techniques to deal with the seasonal and cyclical nature of the business. The accounting department...

Q: The purchasing department at Feder buys all of its raw materials,

The purchasing department at Feder buys all of its raw materials, supplies, and parts. This department is a cost center. It uses a flexible budget based on the number of different items purchased each...

Q: UOP is a manufacturing firm that has depreciation as its only overhead

UOP is a manufacturing firm that has depreciation as its only overhead expense (i.e., there are no indirect labor, indirect materials, property taxes, factory insurance, etc.). UOP uses a flexible bud...

Q: The Mopart Division produces a single product. Its standard cost system

The Mopart Division produces a single product. Its standard cost system uses a flexible budget to assign indirect costs on the basis of standard direct labor hours. At the budgeted volume of 4,000 dir...

Q: The Ogden plant makes Beanie Babies, small stuffed toys in a

The Ogden plant makes Beanie Babies, small stuffed toys in a variety of animal shapes. The toys are so popular that they have become collectors’ items. The plant uses a flexible budget and predetermin...

Q: Blauvelt Products uses a flexible budget to set the overhead rate at

Blauvelt Products uses a flexible budget to set the overhead rate at the beginning of the year based on units produced. In year 1 budgeted fixed overhead is $1 million and budgeted variable overhead i...

Q: Brehm Vineyards grows a unique white pinot noir grape that they use

Brehm Vineyards grows a unique white pinot noir grape that they use to produce a white wine that is in high demand. Brehm uses all the grapes they can grow to produce their own white pinot noir wine....

Q: Golf World is a 1,000-room luxury resort with

Golf World is a 1,000-room luxury resort with swimming pools, tennis courts, three golf courses, and many other resort amenities. The head golf course superintendent, Sandy Green, is responsible for a...

Q: Madigan produces a single high-speed modem. The following table

Madigan produces a single high-speed modem. The following table summarizes the current month’s budget for Madigan’s modem production: Projected production and sales ………………………. 4,000 units Variable cos...

Q: The Lancaster Chamber Orchestra is a small community orchestra that offers two

The Lancaster Chamber Orchestra is a small community orchestra that offers two distinct concert series for its patrons. Series A is devoted entirely to the performance of a classical repertoire and of...

Q: Hurst Mats manufactures custom replacement floor mats for automobiles. The floor

Hurst Mats manufactures custom replacement floor mats for automobiles. The floor mats are made of spun nylon on highly automated, expensive machinery. Hurst manufactures two mat styles: Plush and Delu...

Q: The coating department of a parts manufacturing department coats various parts with

The coating department of a parts manufacturing department coats various parts with an antirust, zinc based material. The parts to be processed are loaded into baskets; the baskets are passed through...

Q: The Bartolotta Company had an overabsorbed overhead balance at year-end

The Bartolotta Company had an overabsorbed overhead balance at year-end. The firm wrote off one-third of it to Cost of Goods Sold, thereby raising net income by $100,000, and the remainder was charged...

Q: Anpax, Inc., manufactures two products: L7 and Q2.

Anpax, Inc., manufactures two products: L7 and Q2. Overhead is allocated to products based on machine hours. Management uses a flexible budget to forecast overhead. For the current year, fixed factory...

Q: IPX is a specialized packaging company that packages other manufacturers’ products.

IPX is a specialized packaging company that packages other manufacturers’ products. Other manufacturers ship their products to IPX in bulk. IPX then packages the products using high-speed, stateof-the...

Q: An organization plans to make a product in batches of 25,

An organization plans to make a product in batches of 25,000 units. Planned production is 1,000,000 units, and actual production is 1,125,000 units. What are the planned (master budget) number of batc...

Q: Tang Company’s production performance report for April includes the information shown below

Tang Company’s production performance report for April includes the information shown below. Prepare a flexible budget for the items shown and compute the flexible budget cost varian...

Q: Why is it useful to decompose a flexible budget variance into a

Why is it useful to decompose a flexible budget variance into a rate (price) variance and an efficiency (quantity) variance?

Q: Rogers Sports sells volleyball kits that it purchases from a sports equipment

Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses...

Q: Adarmes Adventures manufactures aluminum canoes. In planning for the coming year

Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sel...

Q: Refer to the information about Adarmes Adventures given in Exercise 6-

Refer to the information about Adarmes Adventures given in Exercise 6-4. Information from Exercise 6-4: Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis Ki...

Q: POD Incasements manufactures protective cases for MP3 players. During November,

POD Incasements manufactures protective cases for MP3 players. During November, the company’s workers clocked 800 more direct labor hours than the flexible budget amount of 25,000 hours to complete 10...

Q: Russell Marks shook his head in disbelief as he and operations manager

Russell Marks shook his head in disbelief as he and operations manager Tom Hanover reviewed the month’s flexible budget performance report. “How did you manage to make such a poor showing last month?”...

Q: Attacus Company manufactures deep-sea fishing rods, which it distributes

Attacus Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the y...

Q: Pressure Reducers, Inc. produces and sells lumbar support cushions for

Pressure Reducers, Inc. produces and sells lumbar support cushions for office chairs using a special foam that molds to a person’s back. Since all products are made to order, the onl...

Q: Barnes Entertainment Corporation prepared a master budget for the month of November

Barnes Entertainment Corporation prepared a master budget for the month of November that was based on sales of 150,000 board games. The budgeted income statement for the period is as follows. During...

Q: Colonial Cookies, Inc., bakes cookies for retail stores. The

Colonial Cookies, Inc., bakes cookies for retail stores. The company’s best-selling cookie is chocolate nut supreme which is marketed as a gourmet cookie and regularly sells for $8.0...

Q: Refer to DCdesserts.com’s activity-based flexible budget in Exhibit

Refer to DCdesserts.com’s activity-based flexible budget in Exhibit 11–11. Suppose that the company’s activity in June is described as follows: Pr...

Q: The controller for Rainbow Children’s Hospital, located in Munich, Germany

The controller for Rainbow Children’s Hospital, located in Munich, Germany, estimates that the hospital uses 25 kilowatt-hours of electricity per patient-day, and that the electric rate will be €.13 p...

Q: LakeMaster Company manufactures outboard motors that are sold throughout the United States

LakeMaster Company manufactures outboard motors that are sold throughout the United States and Canada. The company uses a comprehensive budgeting process and compares actual results to budgeted amount...

Q: Vermont Sky T ours is a small sightseeing tour company based in

Vermont Sky T ours is a small sightseeing tour company based in Burlington, Vermont. The firm specializes in aerial tours of the New England countryside during September and October, when the fall col...

Q: For each of the following independent Cases A and B, fill

For each of the following independent Cases A and B, fill in the missing information. The company budgets and applies production-overhead costs on the basis of direct-labor hours. (U denotes unfavorab...

Q: Williamsport Wheel and Axle, Inc., has an automated production process

Williamsport Wheel and Axle, Inc., has an automated production process, and production activity is quantified in terms of machine hours. The company uses a standard-costing system. The annual static b...

Q: Explain how an activity-based flexible budget differs from a conventional

Explain how an activity-based flexible budget differs from a conventional flexible budget.

Q: The following data pertain to the Waikiki Sands Hotel for the month

The following data pertain to the Waikiki Sands Hotel for the month of March. Required: Prepare a March performance report similar to the lower portion of Exhibit 12–4 . The report...

Q: After designing your company in the preceding problem, design a set

After designing your company in the preceding problem, design a set of performance reports for the subunits you identified in your chart. Make up numbers for the performance reports, and show the rela...

Q: Wiki Wiki Company has determined that the variable overhead rate is $

Wiki Wiki Company has determined that the variable overhead rate is $4.50 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 10,000 h...

Q: The production supervisor of the Machining Department for Niland Company agreed to

The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actual units produced in...

Q: Steelcase Inc. is one of the largest manufacturers of office furniture

Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following inf...

Q: The Customer Support Department at Silvan.com budgeted for the following

The Customer Support Department at Silvan.com budgeted for the following costs in June, assuming 35 customer consultants responding to 11,200 customer calls: Salaries of customer consultants…………. $160...

Q: The National Battery Company produces a wide variety of batteries for home

The National Battery Company produces a wide variety of batteries for home, automobile, and marine use. One example of its many products is the Road Guardian automobile battery. The standard cost for...

Q: Healder Company provided information on the following three overhead activities.

Healder Company provided information on the following three overhead activities. Healder has found that the following driver levels are associated with two different levels of production. Required...

Q: Ladan Suriman, controller for Healthy Pet Company, has been instructed

Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. Basic Diet is a standard mixture for...

Q: Ladan Suriman, controller for Healthy Pet Company, has been instructed

Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. Basic Diet is a standard mixture for...

Q: Spelzig Company manufactures radio-controlled toy cars. Spelzig has developed

Spelzig Company manufactures radio-controlled toy cars. Spelzig has developed the following flexible budget for overhead for the coming year. Activity level is measured in direct labor hours. The fa...

Q: Stillwater Designs is considering a new Kicker speaker model: Solo X18

Stillwater Designs is considering a new Kicker speaker model: Solo X18, which is a large and expensive subwoofer (projected price is $760 to distributors). The company controls the design specificatio...

Q: Quarterly budgeted overhead costs for two different levels of activity follow.

Quarterly budgeted overhead costs for two different levels of activity follow. The 2,000 level was the expected level from the master budget. The actual activity level was 1,700 hours. Required: 1....

Q: Fernando’s is a tiny sandwich shop just off the State University campus

Fernando’s is a tiny sandwich shop just off the State University campus. Customers enter and place their orders at a small counter area. All orders are take-out because there is no s...

Q: Billy Adams, controller for Westcott Inc., prepared the following budget

Billy Adams, controller for Westcott Inc., prepared the following budget for manufacturing costs at two different levels of activity for 2014: During 2014, Westcott employees worked a total of 80,00...

Q: Lynwood Company produces surge protectors. To help control costs, Lynwood

Lynwood Company produces surge protectors. To help control costs, Lynwood employs a standard costing system and uses a flexible budget to predict overhead costs at various levels of activity. For the...

Q: What is the difference between an activity flexible budget and a traditional

What is the difference between an activity flexible budget and a traditional-based flexible budget?

Q: Explain why mixed costs must be broken down into their fixed and

Explain why mixed costs must be broken down into their fixed and variable components before a flexible budget can be developed.

Q: The total fixed overhead variance can be expressed as the sum of

The total fixed overhead variance can be expressed as the sum of a. the spending and efficiency variances. b. the efficiency and volume variances. c. the spending and volume variances. d. the flexibl...

Q: In activity-based budgeting, flexible budget formulas are created using

In activity-based budgeting, flexible budget formulas are created using a. only unit-level drivers. b. only nonunit-level drivers. c. both unit-level and nonunit-level drivers. d. only direct labor h...

Q: Jarend Company provided information on the following four overhead activities.

Jarend Company provided information on the following four overhead activities. Jarend has found that the following driver levels are associated with two different levels of production. Required: P...

Q: Bowling Company budgeted the following amounts: Variable costs of

Bowling Company budgeted the following amounts: Variable costs of production: Direct materials ………………………… 3 pounds @ $0.60 per pound Direct labor ……………………………………. 0.5 hr. @ $16.00 per hour VOH …………………...

Q: Joe’s Lawn Care Service primarily mows lawns for residential customers. Management

Joe’s Lawn Care Service primarily mows lawns for residential customers. Management has determined direct labor hours is the primary cost driver and has developed the following cost equations based on...

Q: The Splash makes large fiberglass swimming pools and uses machine hours and

The Splash makes large fiberglass swimming pools and uses machine hours and direct labor hours to apply overhead in the Production and Installation departments, respectively. The monthly cost formula...

Q: Tom Snider is a staff accountant for BigBiz. Snider was recently

Tom Snider is a staff accountant for BigBiz. Snider was recently given the task of developing a monthly flexible budget formula for several manufacturing costs. He was told that his equations would be...

Q: Li Corporation’s flexible budget formula for total overhead is $360,

Li Corporation’s flexible budget formula for total overhead is $360,000 plus $8 per direct labor hour. The combined overhead rate is $20 per direct labor hour. The following data have been recorded fo...

Q: Compute the required answer for each of the following independent situations.

Compute the required answer for each of the following independent situations. a. For next year, Penny Suits projects $8,000,000 of sales and total fixed manufacturing costs of $2,000,000. Variable man...

Q: Battle Creek Storage Systems budgeted the following factory overhead costs for the

Battle Creek Storage Systems budgeted the following factory overhead costs for the upcoming year to help calculate variable and fixed predetermined overhead rates. Indirect material: $2.50 per unit pr...

Q: Lansing Mfg. prepared the following 2010 abbreviated flexible budget for different

Lansing Mfg. prepared the following 2010 abbreviated flexible budget for different levels of machine hours: Each product requires 4 hours of machine time, and the company expects to produce 10,000 uni...

Q: Tom’s Shoe Repair provides a variety of shoe and repair services.

Tom’s Shoe Repair provides a variety of shoe and repair services. Analysis of monthly costs revealed the following cost formulas when direct labor hours are used as the basis of cost determination: Su...

Q: The standard cost card for the single product manufactured by Cutter,

The standard cost card for the single product manufactured by Cutter, Inc., is given below: Standard Cost Card—per Unit Direct materials, 3 yards at $6.00 per yard ....................

Q: Joyce Brown has run Medical Maids, a specialty cleaning service for

Joyce Brown has run Medical Maids, a specialty cleaning service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. Joyce has on...

Q: Each of the following statements is correct regarding overhead variances except:

Each of the following statements is correct regarding overhead variances except: a. Actual overhead greater than applied overhead is unfavorable. b. The efficiency overhead variance ignores the standa...

Q: Cooking Whiz manufactures premium food processors. The following are some manufacturing

Cooking Whiz manufactures premium food processors. The following are some manufacturing overhead data for Cooking Whiz for the year ended December 31, 2017: Budgeted number of output units: 915 Plan...

Q: Cooking Whiz manufactures premium food processors. The following are some manufacturing

Cooking Whiz manufactures premium food processors. The following are some manufacturing overhead data for Cooking Whiz for the year ended December 31, 2017: Budgeted number of output units: 915 Plan...

Q: Consider the following two situations—cases A and B— independently

Consider the following two situations—cases A and B— independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assum...

Q: Audrina’s Fleet Feet, Inc., produces dance shoes for stores all

Audrina’s Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping...

Q: The Roller Bag Company manufactures extremely light and rolling suitcases. It

The Roller Bag Company manufactures extremely light and rolling suitcases. It was one of the first companies to produce rolling suitcases and sales have increased for the past several years. In 2017,...

Q: The Gallo Company uses a flexible budget and standard costs to aid

The Gallo Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. It’s costing system for manufacturing has two direct-cost categories...

Q: Rob Kapito, the controller of Blackstar Paint Supply Company, has

Rob Kapito, the controller of Blackstar Paint Supply Company, has been exploring a variety of internal accounting systems. Rob hopes to get the input of Blackstar’s board of director...

Q: Sweeney Enterprises manufactures tires for the Formula I motor racing circuit.

Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,600 tires at a variable cost of $71 per tire and total fixed costs...

Q: Bryant Company’s budgeted prices for direct materials, direct manufacturing labor,

Bryant Company’s budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $43, $6, and $13, respe...

Q: Bank Management Printers, Inc., produces luxury checkbooks with three checks

Bank Management Printers, Inc., produces luxury checkbooks with three checks and stubs perpage. Each checkbook is designed for an individual customer and is ordered through the customer’s bank. The co...

Q: The Clarkson Company produces engine parts for car manufacturers. A new

The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the company’s variance analysis calculations for the ye...

Q: Student Finance (StuFi) is a start-up that aims

Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current...

Q: Folsom Fashions sells a line of women’s dresses. Folsom’s performance report

Folsom Fashions sells a line of women’s dresses. Folsom’s performance report for November 2010 is shown below. The company uses a flexible budget to analyze its per...

Q: Birmingham Chemical evaluates performance in part through the use of flexible budgets

Birmingham Chemical evaluates performance in part through the use of flexible budgets. The selling expense budgets at three activity levels within the relevant range follow. The following assumptions...

Q: Muskrat Medical Equipment Company makes a blood pressure measuring kit. Jason

Muskrat Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department’s static budget and actual results for 2019 f...

Q: Secor Educational Services had budgeted its training service charge at $120

Secor Educational Services had budgeted its training service charge at $120 per hour. The company planned to provide 30,000 hours of training services during 2019. By lowering the service charge to $1...

Q: David Catrow is the manufacturing production supervisor for Faraday Motor Works (

David Catrow is the manufacturing production supervisor for Faraday Motor Works (FMW), a company that manufactures electrical motors for industrial applications. Trying to explain why he did not get t...

Q: Kemp Tables, Inc. (KTI) makes picnic tables of

Kemp Tables, Inc. (KTI) makes picnic tables of 2 × 4 planks of treated pine. It sells the tables to large retail discount stores such as Walmart. After reviewing the following data genera...

Q: Howard Cooper, the president of Glacier Computer Services, needs your

Howard Cooper, the president of Glacier Computer Services, needs your help. He wonders about the potential effects on the firm’s net income if he changes the service rate that the firm charges its cus...

Q: Narcisco Publications established the following standard price and costs for a hardcover

Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price…...

Q: Use the standard price and cost data supplied in Problem 15-

Use the standard price and cost data supplied in Problem 15-20. Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow. A...

Q: How are flexible budget variances determined? What causes these variances?

How are flexible budget variances determined? What causes these variances?

Q: Use the standard price and cost data provided in Exercise 15-

Use the standard price and cost data provided in Exercise 15-2. Assume that the actual sales price is $11.76 per unit and that the actual variable cost is $6.90 per unit. The actual fixed manufacturin...

Q: Steelcase Inc. is one of the largest manufacturers of office furniture

Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume...

Q: The production supervisor of the Machining Department for Lei Company agreed to

The production supervisor of the Machining Department for Lei Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actual units produced in th...

Q: Ray Company provided the following excerpts from its Production Department’s flexible budget

Ray Company provided the following excerpts from its Production Department’s flexible budget performance report: Required: Complete the Production Department’s Fle...

Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: The planning budge...

Q: The Excel worksheet form that appears below is to be used to

The Excel worksheet form that appears below is to be used to recreate the Review Problem relating to Harrald’s Fish House. Download the workbook containing this form from Connect, wh...

Q: Flight Café prepares in-flight meals for airlines in its kitchen

Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company’s planning budget for July appears below: Flight Café Planning Budget For the Month Ended...

Q: Refer to the data for Lavage Rapide in Exercise 9–10

Refer to the data for Lavage Rapide in Exercise 9–10. The company actually washed 8,800 cars in August. Data given in Exercise 9-10: Lavage Rapide is a Canadian company that owns an...

Q: Refer to the data for Lavage Rapide in Exercises 9–10

Refer to the data for Lavage Rapide in Exercises 9–10 and 9–13. Data given in Exercise 9-10: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash fac...

Q: Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Janet Dunn, wh...

Q: Business Solutions’s second quarter 2016 fixed budget performance report for its computer

Business Solutions’s second quarter 2016 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable ex...

Q: Sedona Company set the following standard costs for one unit of its

Sedona Company set the following standard costs for one unit of its product for 2015. The $5.60 ($4.00 1 $1.60) total overhead rate per direct labor hour is based on an expected operating level equa...

Q: Refer to the information from Exercise 23-17. Compute and

Refer to the information from Exercise 23-17. Compute and interpret the following. 1. Variable overhead spending and efficiency variances. 2. Fixed overhead spending and volume variances. 3. Controlla...

Q: Bay City Company’s fixed budget performance report for July follows. The

Bay City Company’s fixed budget performance report for July follows. The $647,500 budgeted total expenses include $487,500 variable expenses and $160,000 fixed expenses. Actual expen...

Q: Phoenix Company’s 2015 master budget included the following fixed budget report.

Phoenix Company’s 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Required 1. Classify all it...

Q: Refer to the information in Problem 23-1A. Phoenix Company’s

Refer to the information in Problem 23-1A. Phoenix Company’s actual income statement for 2015 follows. Required 1. Prepare a flexible budget performance report for 2015. Analysis...

Q: Trico Company set the following standard unit costs for its single product

Trico Company set the following standard unit costs for its single product. The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units p...

Q: Refer to information in Problem 23-4A. Required

Refer to information in Problem 23-4A. Required Compute these variances: (a) variable overhead spending and efficiency, (b) fixed overhead spending and volume, and (c) total overhead controllable. I...

Q: Refer to the information in Problem 23-1B. Tohono Company’s

Refer to the information in Problem 23-1B. Tohono Company’s actual income statement for 2015 follows. Required 1. Prepare a flexible budget performance report for 2015. Analysis C...

Q: Kryll Company set the following standard unit costs for its single product

Kryll Company set the following standard unit costs for its single product. The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units p...

Q: Refer to information in Problem 23-4B. Required

Refer to information in Problem 23-4B. Required Compute these variances: (a) variable overhead spending and efficiency, (b) fixed overhead spending and volume, and (c) total overhead controllable. I...

Q: Prepare a flexible budget performance report title (in proper form)

Prepare a flexible budget performance report title (in proper form) for Spalding Company for the calendar year 2015. Why is a proper title important for this or any report?

Q: Beech Company produced and sold 105,000 units of its product

Beech Company produced and sold 105,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fixed cost...

Q: Fogel Co. expects to produce 116,000 units for the

Fogel Co. expects to produce 116,000 units for the year. The company’s flexible budget for 116,000 units of production shows variable overhead costs of $162,400 and fixed overhead costs of $124,000. F...

Q: Brodrick Company expects to produce 20,000 units for the year

Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed cost...

Q: Refer to information in QS 23-3. Assume that actual

Refer to information in QS 23-3. Assume that actual sales for the year are $480,000, actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000. Prepare a flexib...

Q: Based on predicted production of 24,000 units, a company

Based on predicted production of 24,000 units, a company anticipates $300,000 of fixed costs and $246,000 of variable costs. If the company actually produces 20,000 units, what are the flexible budget...

Q: As sales manager, Joe Batista was given the following static budget

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October. As a result of this budget repor...

Q: Venetian Company has two production departments, Fabricating and Assembling. At

Venetian Company has two production departments, Fabricating and Assembling. At a department managers’ meeting, the controller uses flexible budget graphs to explain total budgeted costs. Separate gra...

Q: The actual selling expenses incurred in March 2014 by DeWitt Company are

The actual selling expenses incurred in March 2014 by DeWitt Company are as follows. Instructions: (a) Prepare a flexible budget performance report for March using the budget data in E22-5, assuming...

Q: Kitchen Help Inc. (KHI) is a manufacturer of toaster

Kitchen Help Inc. (KHI) is a manufacturer of toaster ovens. To improve control over operations, the president of KHI wants to begin using a flexible budgeting system, rather than use only the current...

Q: Rensing Groomers is in the dog-grooming business. Its operating

Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable)………………………… y = $0 1 $5x Direct labor (variable) ………………………………...

Q: Lowell Company’s manufacturing overhead budget for the first quarter of 2014 contained

Lowell Company’s manufacturing overhead budget for the first quarter of 2014 contained the following data. Actual variable costs were indirect materials $13,900, indirect labor $9,...

Q: The Current Designs staff has prepared the annual manufacturing budget for the

The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,000 kayaks during 2013. Each kayak will require 54 pounds of...

Q: Green Pastures is a 400-acre farm on the outskirts of

Green Pastures is a 400-acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has le...

Q: Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past

Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2014. The following data were used in d...

Q: In Paige Company, direct labor is $20 per hour.

In Paige Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2014, direct labor totaling $204,000 is incurred in working 10,400 ho...

Q: Data for Gundy Company are given in BE22-4. In

Data for Gundy Company are given in BE22-4. In March 2014, the company incurs the following costs in producing 100,000 units: direct materials $525,000, direct labor $596,000, and variable overhead $8...

Q: Megan Pedigo is confused about how a flexible budget is prepared.

Megan Pedigo is confused about how a flexible budget is prepared. Identify the steps for Megan.

Q: In Pargo Company’s flexible budget graph, the fixed cost line and

In Pargo Company’s flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical axis at $90,000. The total budgeted cost line is $330,000 at an activity level of...

Q: “A flexible budget is really a series of static budgets.”

“A flexible budget is really a series of static budgets.” Is this true? Why?

Q: Cali Company has prepared a graph of flexible budget data. At

Cali Company has prepared a graph of flexible budget data. At zero direct labor hours, the total budgeted cost line intersects the vertical axis at $20,000. At 10,000 direct labor hours, the line draw...

Q: The flexible budget formula is fixed costs $50,000 plus

The flexible budget formula is fixed costs $50,000 plus variable costs of $4 per direct labor hour. What is the total budgeted cost at (a) 9,000 hours and (b) 12,345 hours?

Q: Mussatto Company expects to produce 50,000 units of product IOA

Mussatto Company expects to produce 50,000 units of product IOA during the current year. Budgeted variable manufacturing costs per unit are direct materials $7, direct labor $13, and overhead $18. Ann...

Q: Budgeted amounts for the year: Materials ……………………2

Budgeted amounts for the year: Materials ……………………2 leather strips @ $7.00 Labor …………………………………….1.5 hr. @ $18.00 VOH ……………………………………….1.5 hr. @ $1.20 FOH ……………………………………………………$6,800 Required: 1. Prep...

Q: Allison Manufacturing produces a subassembly used in the production of jet aircraft

Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units...

Q: Balboa Company budgeted the following amounts: /

Balboa Company budgeted the following amounts: Required: Prepare a flexible budget for 4,000 units, 4,500 units, and 5,000 units.

Q: The following information is provided concerning the operations of Tolstoy

The following information is provided concerning the operations of Tolstoy Corporation for the current period:There are no inventories.RequiredPrepare a flexible budget for Tolstoy Corporation.

Q: Budgeted amounts for the year:

Budgeted amounts for the year:Materials ………………………………….. 2 leather strips @ $7.00Labor …………………….…………………………….. 1.5 hr. @ $18.00VOH ……………………………..………………………… 1.5 hr. @ $1.20FOH …………………………………………………………………… $...

Q: Ladan Suriman, controller for Healthy Pet Company, has been instructed

Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. Basic Diet is a standard mixture for...

Q: Allison Manufacturing produces a subassembly used in the production of

Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units...

Q: Orchard Fresh Inc. purchases fruit from numerous growers and packs

Orchard Fresh Inc. purchases fruit from numerous growers and packs fruit boxes and fruit baskets for sale. Orchard Fresh has developed the following flexible budget for overhead for the coming year. A...

Q: Hill Company uses budgets in controlling costs. The August 2014

Hill Company uses budgets in controlling costs. The August 2014 budget report for the company’s Assembling Department is as follows.The monthly budget amounts in the report were base...

Q: Cook Company estimates that 300,000 direct labor hours will be

Cook Company estimates that 300,000 direct labor hours will be worked during the coming year, 2014, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown bel...

Q: Thome Company uses a flexible budget for manufacturing overhead based

Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.Indirect labor …………………1Indirect...

Q: Using the information in E22-3, assume that in July 2014,

Using the information in E22-3, assume that in July 2014, Thome Company incurs the following manufacturing overhead costs.Instructions:(a) Prepare a flexible budget performance report, assuming that t...

Q: DeWitt Company uses flexible budgets to control its selling expenses.

DeWitt Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales...

Q: The Clarkson Company produces engine parts for car manufacturers. A new

The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the calculations on the company’s variance analysis cal...

Q: What is the key difference between a static budget and a flexible

What is the key difference between a static budget and a flexible budget ?

Q: A number of terms are listed below: /

A number of terms are listed below: Required: Select the terms from the above list to complete the following sentences. The question is whether or not the actual results met expectations, exceeded e...

Q: Brabham Enterprises manufactures tires for the Formula I motor racing circuit.

Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2015, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs...

Q: Connor Company’s budgeted prices for direct materials, direct manufacturing labour,

Connor Company’s budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attaché case are $40, $8, and $12, res...

Q: Magic Dice manufactures premium food processors. The following is some manufacturing

Magic Dice manufactures premium food processors. The following is some manufacturing overhead data for Magic Dice for the year ended December 31, 2015. Required: Calculate the following quantities (...

Q: Refer to Problem 8-29. Required:

Refer to Problem 8-29. Required: 1.Prepare journal entries for variable and fixed manufacturing overhead (you will need to calculate the various variances to accomplish this). 2.Overhead variances ar...

Q: Fresh Inc. is a manufacturer of vacuums and uses standard costing

Fresh Inc. is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2015, budgeted f...

Q: Consider each of the following situations—cases A, B,

Consider each of the following situations—cases A, B, and C—independently. Data refer to operations for April 2015. For each situation, assume standard costing. Als...

Q: Mancusco Company uses a flexible budget and standard costs to aid planning

Mancusco Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct cost categories (d...

Q: Beal Manufacturing Company’s costing system has two direct cost categories: direct

Beal Manufacturing Company’s costing system has two direct cost categories: direct materials and direct manufacturing labour. Manufacturing overhead (both variable and fixed) is allo...

Q: G-Force Corporation is a manufacturer of centrifuges. Fixed and

G-Force Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overhead cost pools are allocated to each centrifuge using budgeted assembly hours. Budgeted assembly time is two...

Q: Shen Company is a manufacturer of MP3 players. It implemented standard

Shen Company is a manufacturer of MP3 players. It implemented standard costs and a flexible budget on January 1, 2015. The president has been pondering how fixed manufacturing overhead should be alloc...

Q: Singh Company uses a standard cost system in its manufacturing plant for

Singh Company uses a standard cost system in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,000 output units per year, included...

Q: The Singapore division of a Canadian telecommunications company uses a standard cost

The Singapore division of a Canadian telecommunications company uses a standard cost system for its machine-based production of telephone equipment. Data regarding production during June are as follow...

Q: A large metropolitan health-care complex, General Hospital, has

A large metropolitan health-care complex, General Hospital, has had difficulty controlling its accounts receivable. Costs currently available from the information system are inaccurate and have led to...

Q: Chubbs Inc.’s manufacturing overhead budget for the first quarter of

Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data. Actual variable costs were indirect materials $13,500, indirect labor $9,500...

Q: Myers Company uses a flexible budget for manufacturing overhead based on direct

Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor ……………………………….....

Q: Fallon Company uses flexible budgets to control its selling expenses. Monthly

Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales...

Q: Appliance Possible Inc. (AP) is a manufacturer of toaster

Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the curr...

Q: In Pargo Company’s flexible budget graph, the fixed cost line and

In Pargo Company’s flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical axis at $90,000. The total budgeted cost line is $350,000 at an activity level of...

Q: Data for Gundy Company are given in BE25.4. In

Data for Gundy Company are given in BE25.4. In March 2020, the company incurs the following costs in producing 100,000 units: direct materials $520,000, direct labor $596,000, and variable overhead $8...

Q: In Rooney Company, direct labor is $20 per hour.

In Rooney Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2020, direct labor totaling $206,000 is incurred in working 10,400 h...

Q: Using the information in E25.3, assume that in July

Using the information in E25.3, assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Instructions a. Prepare a flexible budget performance report, assuming that...

Q: The actual selling expenses incurred in March 2020 by Fallon Company are

The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Instructions a. Prepare a flexible budget performance report for March using the budget data in E25.5, assuming t...

Q: The Current Designs staff has prepared the annual manufacturing budget for the

The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,000 kayaks during 2020. Each kayak will require 54 pounds of...

Q: The flexible budget formula is fixed costs $50,000 plus

The flexible budget formula is fixed costs $50,000 plus variable costs of $4 per direct labor hour. What is the total budgeted cost at (a) 9,000 hours and (b) 12,345 hours?

Q: Green Pastures is a 400-acre farm on the outskirts of

Green Pastures is a 400-acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has ma...

Q: Bumblebee Company estimates that 300,000 direct labor hours will be

Bumblebee Company estimates that 300,000 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost...

Q: Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past

Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2020. The following data were used in d...

Q: Ratchet Company uses budgets in controlling costs. The August 2020 budget

Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company’s Assembling Department is as follows. The monthly budget amounts in the report wer...

Q: Rozema, Inc., produces chemicals for large biotech companies. It

Rozema, Inc., produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August 2013: Use F for favorable and U for unfavorable:

Q: Stevie McQueen has run Lightning Car Detailing for the past 10 years

Stevie McQueen has run Lightning Car Detailing for the past 10 years. His static budget and actual results for June 2011 are provided next. Stevie has one employee who has been with him for all 10 yea...

Q: Kitchen Whiz manufactures premium food processors. The following is some manufacturing

Kitchen Whiz manufactures premium food processors. The following is some manufacturing overhead data for Kitchen Whiz for the year ended December 31, 2012: Budgeted number of output units: 888 Plann...

Q: Consider the following two situations—cases A and B— independently

Consider the following two situations—cases A and B— independently. Data refer to operations for April 2012. For each situation, assume standard costing. Also assum...

Q: Pointe’s Fleet Feet, Inc., produces dance shoes for stores all

Pointe’s Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping d...

Q: Jo Nathan Publishing Company specializes in printing specialty textbooks for a small

Jo Nathan Publishing Company specializes in printing specialty textbooks for a small but profitable college market. Due to the high setup costs for each batch printed, Jo Nathan holds the book request...

Q: The Mancusco Company uses a flexible budget and standard costs to aid

The Mancusco Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct-cost categorie...

Q: The Beal Manufacturing Company’s costing system has two direct-cost categories

The Beal Manufacturing Company’s costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is a...

Q: Eco-Green Company manufactures cloth shopping bags that it plans to

Eco-Green Company manufactures cloth shopping bags that it plans to sell for $5 each. Budgeted production and sales for these bags for 2011 is 800,000bags, with a standard of 400,000 machine hours for...

Q: Carlisle Company is a manufacturer of precision surgical tools. It initiated

Carlisle Company is a manufacturer of precision surgical tools. It initiated standard costing and a flexible budget on January 1, 2011. The company president, Monica Carlisle, has been pondering how f...

Q: Brabham Enterprises manufactures tires for the Formula I motor racing circuit.

Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2012, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs...

Q: Connor Company’s budgeted prices for direct materials, direct manufacturing labor,

Connor Company’s budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $40, $8, and $12, respe...

Q: Bank Management Printers, Inc., produces luxury checkbooks with three checks

Bank Management Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customerâ€&...

Q: The Clarkson Company produces engine parts for car manufacturers. A new

The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the calculations on the company’s variance analysis cal...

Q: Raney Company uses a flexible budget for manufacturing overhead that is based

Raney Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. The variable manufacturing overhead costs per direct labour hour are as follows: Prepare flexible...

Q: Using the information in E11.19, assume that in July

Using the information in E11.19, assume that in July 2020, Raney Company incurs the following manufacturing overhead costs: Prepare flexible budget reports for manufacturing overhead costs, and commen...

Q: Vincent Company uses flexible budgets to control its selling expenses. Monthly

Vincent Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are as f...

Q: The actual selling expenses incurred in March 2020 by Vincent Company are

The actual selling expenses incurred in March 2020 by Vincent Company are as follows: Prepare flexible budget reports for selling expenses. / / Instructions a. Prepare a flexible budget performance...

Q: Sublette Company's manufacturing overhead budget for the first quarter of 2020 contained

Sublette Company's manufacturing overhead budget for the first quarter of 2020 contained the following data: Prepare a flexible budget report and a responsibility report for manufacturing overhead....

Q: As sales manager, Kajsa Keyser was given the following static budget

As sales manager, Kajsa Keyser was given the following static budget report for selling expenses in the clothing department of Dunham Company for the month of October: Prepare and discuss a flexible b...

Q: Oakley Company estimates that 360,000 direct labour hours will be

Oakley Company estimates that 360,000 direct labour hours will be worked in the packaging department during 2020. Based on that, it has calculated the following budgeted manufacturing overhead cost da...

Q: Finesse Company manufactures tablecloths. Sales have grown rapidly over the past

Finesse Company manufactures tablecloths. Sales have grown rapidly over the past two years. As a result, the president has installed a budgetary control system for 2020. The following data were used i...

Q: Yaeger Company uses budgets in controlling costs. The company based the

Yaeger Company uses budgets in controlling costs. The company based the monthly budget amounts in the report on an expected production of 60,000 units per month or 720,000 units per year. The assembli...

Q: Health Care Inc. (HCI) uses a flexible budgeting system

Health Care Inc. (HCI) uses a flexible budgeting system, rather than only the current master budget. The following data are available for HCI's expected costs at production levels of 100,000, 110,000,...

Q: Alcore Company estimates that 240,000 direct labour hours will be

Alcore Company estimates that 240,000 direct labour hours will be worked in the assembly department during 2020. Based on that, the following budgeted manufacturing overhead data are calculated: Prepa...

Q: Kitchen Care Inc. (KCI) is a manufacturer of toaster

Kitchen Care Inc. (KCI) is a manufacturer of toaster ovens. To improve control over operations, the president of KCI wants to begin using a flexible budgeting system, rather than use only the current...

Q: High Arctic Manufacturing Company produces one product, Kebo. Because of

High Arctic Manufacturing Company produces one product, Kebo. Because of wide fluctuations in the demand for Kebo, the assembly department has significant variations in its monthly production levels....

Q: Doggone Groomers is in the dog-grooming business. Its operating

Doggone Groomers is in the dog-grooming business. Its operating costs are described by these formulas: Prepare a flexible budget report; compare flexible and static budgets. Grooming supplies (variab...

Q: Laesecke Company uses budgets to control costs. The May 2020 budget

Laesecke Company uses budgets to control costs. The May 2020 budget report for the company's packaging department is as follows: State the total budgeted cost formula, and prepare flexible budget repo...

Q: Sherrer Company has two production departments: fabricating and assembling. At

Sherrer Company has two production departments: fabricating and assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain the total budgeted costs. Separate...

Q: On July 2, 2020, the accounting staff of Waterway's B

On July 2, 2020, the accounting staff of Waterway's B.C. plant was shocked to discover that their accounting system had been compromised by a brand new computer virus called “badget.” While their soft...

Q: In Hinsdale Company, direct labour is $20 per hour.

In Hinsdale Company, direct labour is $20 per hour. The company expects to operate at 10,000 direct labour hours each month. In January 2020, the company incurs direct labour totalling $204,000 in wor...

Q: Dukane Company expects to produce 1.2 million units of product

Dukane Company expects to produce 1.2 million units of product XX in 2020. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are as f...

Q: Data for Dukane Company are given in BE11.4. In

Data for Dukane Company are given in BE11.4. In March 2020, the company incurs the following costs in producing 100,000 units: direct materials $425,000, direct labour $590,000, and variable overhead...

Q: The Current Designs staff has prepared the annual manufacturing budget for the

The Current Designs staff has prepared the annual manufacturing budget for the rotomoulded line based on an estimated annual production of 4,000 kayaks during 2020. Each kayak will require 54 kilogram...

Q: In Moore Company's flexible budget graph, the fixed cost line and

In Moore Company's flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical axis at $90,000. The total budgeted cost line is $330,000 at an activity level of...

Q: Chickasaw Company expects to produce 50,000 units of product XLA

Chickasaw Company expects to produce 50,000 units of product XLA during the current year. Budgeted variable manufacturing costs per unit are direct materials $7, direct labour $12, and overhead $18. A...

Q: Z-Bar Pastures is a 160-hectare farm on the

Z-Bar Pastures is a 160-hectare farm on the outskirts of Swift Current, Saskatchewan, specializing in the boarding of brood mares and their foals. A recent economic downturn in the thoroughbred indust...

Q: Steelcase Inc. is one of the largest manufacturers of office furniture

Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following inf...

Q: Tardy Taxis operates a fleet of taxis in a provincial town.

Tardy Taxis operates a fleet of taxis in a provincial town. In planning its operations for November, it estimated that it would carry fare-paying passengers for 40 000 miles at an average price of £1...

Q: Meditech South Africa (Pty) Ltd provides software solutions to meet

Meditech South Africa (Pty) Ltd provides software solutions to meet the information needs of healthcare organizations in Africa and the Middle East. According to their website, the software can encomp...

Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

Q: Central Coast Public Clinic is a free outpatient clinic for public assistance

Central Coast Public Clinic is a free outpatient clinic for public assistance patients. Among other services, the clinic provides visiting nurses for elderly patients in their homes. A homemaker who c...

Q: How are the master budget and flexible budget related?

How are the master budget and flexible budget related?

Q: Data for the Stove Division of Appliances Now, which produces and

Data for the Stove Division of Appliances Now, which produces and sells a complete line of kitchen stoves, are as follows. The budget, set at the beginning of the year, was based upon estimates of s...

Q: Play Time Toys is organised into two major divisions: marketing and

Play Time Toys is organised into two major divisions: marketing and production. The production division is further divided into three departments: puzzles, dolls and video games. Each production depar...

Q: Cardinal Products hired a new marketing manager early this year. After

Cardinal Products hired a new marketing manager early this year. After an informal consumer survey, the marketing manager decided to lower the firm’s selling price by 10 per cent and...

Q: Consider the following information for Morgan’s Cheese and Butter Division.

Consider the following information for Morgan’s Cheese and Butter Division. Additional information: Required (a) Calculate the market size and market share variances. (b) Comment...

Q: Software Galore sells gaming software that is downloaded to the customer’s device

Software Galore sells gaming software that is downloaded to the customer’s device on purchase. The owner, Fred, was talking with a friend who sang the praises of flexible budgeting in his manufacturin...

Q: Paper Bright Industries uses flexible budgeting to assess budgeted expectations against actual

Paper Bright Industries uses flexible budgeting to assess budgeted expectations against actual performance. Last month Paper Bright produced 12 000 units and incurred direct materials cost of $150 000...

Q: Black Industries has a static budget based on production and sales of

Black Industries has a static budget based on production and sales of 24 000 units. Sales revenue is expected to be $96 000, variable costs $36 000 and fixed costs $32 000. Actual production and sales...

Q: Helium Industries manufactures glitter balloons used as party accessories. The balloons

Helium Industries manufactures glitter balloons used as party accessories. The balloons are bagged in packages of 100 and sold for $20 per pack. The company incurs fixed manufacturing overhead of $25...

Q: The photocopying department in the local polytechnic college has budgeted monthly costs

The photocopying department in the local polytechnic college has budgeted monthly costs at $40 000 per month plus $7 per student. Normally 800 students are enrolled. During March there were 730 studen...

Q: The accountant for Moon Industries has taken unexpected leave and has not

The accountant for Moon Industries has taken unexpected leave and has not completed the end-ofperiod budget analysis. The following incomplete budget analysis was found on her desk. Additional infor...

Q: Plush pet toys are produced in a largely automated factory in standard

Plush pet toys are produced in a largely automated factory in standard lots of 100 toys each. A standard cost system is used to control costs and to assign cost to inventory. Variable overhead, esti...

Q: The following data represents the flexible budget for Mountain Mist Brewery,

The following data represents the flexible budget for Mountain Mist Brewery, a boutique brewery that manufactures and sells boutique ales. Overall, the increase in the final price of beer has contri...

Q: Play Time Toys is organised into two major divisions: marketing and

Play Time Toys is organised into two major divisions: marketing and production. The production division is further divided into three departments: puzzles, dolls and video games. Each production depar...

Q: Vulcan Flyovers offers scenic overflights of Mount St. Helens, the

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appe...

Q: Alyeski Tours operates day tours of coastal glaciers in Alaska on its

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers—the number of cruises and the number of p...

Q: The Gourmand Cooking School runs short cooking courses at its small campus

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of...

Q: Milano Pizza is a small neighborhood pizzeria that has a small area

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determi...

Q: Tip Top Flight School offers flying lessons at a small municipal airport

Tip Top Flight School offers flying lessons at a small municipal airport. The school’s owner and manager has been attempting to evaluate performance and control costs using a varianc...

Q: The Little Theatre is a nonprofit organization devoted to staging plays for

The Little Theatre is a nonprofit organization devoted to staging plays for children. The theater has a very small full-time professional administrative staff. Through a special arrangement with the a...

Q: The Excel worksheet form that appears on the next page is to

The Excel worksheet form that appears on the next page is to be used to recreate the Review Problem relating to Harrald’s Fish House. The workbook, and instructions on how to complet...

Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: The planning budge...

Q: What is the difference between the applied variable overhead cost and the

What is the difference between the applied variable overhead cost and the total variable overhead cost in the flexible budget? What is the difference between the applied factory overhead cost and the...

Q: Edwards and Bell market a single line of home computers, dubbed

Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the coming year contained the following items: sales revenue, $400,000; variable costs, $250,000; fixed...

Q: Refer to Exhibit 14.8 and the accompanying discussion in the

Refer to Exhibit 14.8 and the accompanying discussion in the text. Demonstrate that the flexible budget variance for PVC during October 2022 was $1,680F. Exhibit 14.8:

Q: Baxter Corporation’s master budget calls for the production of 5,000

Baxter Corporation’s master budget calls for the production of 5,000 units per month and $144,000 indirect labor costs for the year. Baxter considers indirect labor as a component of variable factory...

Q: Refer to the information in Brief Exercise 15-16. Calculate

Refer to the information in Brief Exercise 15-16. Calculate and label the following factory overhead variances for the year: (a) total overhead cost variance, (b) total flexible budget variance, and...

Q: Refer to the variances you calculated in conjunction with Brief Exercise 15

Refer to the variances you calculated in conjunction with Brief Exercise 15-21 and to the information in Brief Exercises 15-16 and 15-18. Prepare the appropriate journal entries to record (a) actual...

Q: Refer to the journal entries made in Brief Exercise 15-22

Refer to the journal entries made in Brief Exercise 15-22. Provide an appropriate end-of-year closing entry for each of the following two independent situations: (a) the net factory overhead cost var...

Q: The following information is available for Brownstone Products /

The following information is available for Brownstone Products Required: 1. What was the master budget variance for July, rounded to the nearest whole dollar? Was this variance favorable or unfavora...

Q: As the new accountant for Cohen & Co., you have been

As the new accountant for Cohen & Co., you have been asked to provide a succinct analysis of financial performance for the year just ended. You obtain the following information that pertains to th...

Q: Assume that in October 2022 the Schmidt Machinery Company (Exhibit 14

Assume that in October 2022 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 950 units for $835 each. During this month, the company incurred $475,000 total variable costs and $180,0...

Q: Crane Corporation’s master budget for the year is shown below:

Crane Corporation’s master budget for the year is shown below: Required: 1. During the year, the company manufactured and sold 55,000 units of product. Prepare an Excel spreadsheet...

Q: RTI Company’s master budget calls for production and sale of 18,

RTI Company’s master budget calls for production and sale of 18,000 units for $81,000, variable costs of $30,600, and fixed costs of $20,000. During the most recent period, the company incurred $32,00...

Q: Johnny Lee, Inc., produces a line of small gasoline-

Johnny Lee, Inc., produces a line of small gasoline-powered engines that can be used in a variety of residential machines, ranging from different types of lawnmowers, to snowblowers, to garden tools (...

Q: Overhead information for Cran-Mar Company for October follows:

Overhead information for Cran-Mar Company for October follows: Total factory overhead cost incurred ………………………………….. $30,000 Budgeted fixed factory overhead cost …………………………………… $ 7,125 Total standard...

Q: Clark Company’s master budget includes $360,000 for equipment depreciation

Clark Company’s master budget includes $360,000 for equipment depreciation. The master budget was prepared for an annual volume of 120,000 chargeable hours. This volume is expected to occur uniformly...

Q: The Platter Valley factory of Bybee Industries manufactures field boots. The

The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct...

Q: For March, the Platter Valley factory of Bybee Industries budgeted $

For March, the Platter Valley factory of Bybee Industries budgeted $90,000 for fixed factory overhead cost. Its practical capacity is 2,500 direct labor hours per month (to manufacture 5,000 pairs of...

Q: (Continuation of Exercises 15-29 and 15-30)

(Continuation of Exercises 15-29 and 15-30) The Platter Valley factory of Bybee Industries uses a two-variance analysis of the total factory overhead variance. Required: 1. Use the data given in Exer...

Q: Refer to the information for Johnny Lee, Inc., in Exercise

Refer to the information for Johnny Lee, Inc., in Exercise 15-24. Assume that in a given month (December) the standard allowed machine hours for output produced was 5,500. Also, assume that the denomi...

Q: Alden Company uses a three-variance analysis for factory overhead variances

Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 32 setups and 32,000 machine hours to manufacture 6,400 units for the year. Selected data...

Q: Going into the period just ended, Ortiz & Co., manufacturer

Going into the period just ended, Ortiz & Co., manufacturer of a moderately priced espresso maker for retail sale, had planned to produce and sell 3,900 units at $100.00 per unit. Budgeted variable ma...

Q: Phoenix Management helps rental property owners find renters and charges the owners

Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service. For August 2022, Phoenix expects to find rent...

Q: As part of its comprehensive planning and control system, Mopar Company

As part of its comprehensive planning and control system, Mopar Company uses a master budget and subsequent variance analysis. You are given the following information that pertains to the company&acir...

Q: Acme Financial issues letters of credit to importers for overseas purchases.

Acme Financial issues letters of credit to importers for overseas purchases. The company charges a nonrefundable application fee of $4,000 and, on approval, an additional service fee of 2.0% of the am...

Q: The Bangor Manufacturing Company produces mechanical toy robots that are typically produced

The Bangor Manufacturing Company produces mechanical toy robots that are typically produced in batches of 250 units. Prior to the current year, the company’s accountants used a standard cost system wi...

Q: Robinson Company has two products, A and B. Robinson’s budget

Robinson Company has two products, A and B. Robinson’s budget for August follows: On September l, these operating results for August were reported: Required: 1. For each product,...

Q: Jay Banning, CEO and a major stockholder of Banning Inc.,

Jay Banning, CEO and a major stockholder of Banning Inc., was unhappy with its operating results for the past year. The company manufactures two environmentally friendly, industrial-caliber cleaning m...

Q: TransPacific Airlines (TPA) budgeted 80 million passenger miles, or

TransPacific Airlines (TPA) budgeted 80 million passenger miles, or 5 percent of the total market for the year just completed, at a contribution margin of 40 cents per mile. The budgeted average price...

Q: The controller for Rainbow Children’s Hospital, located in Munich, Germany

The controller for Rainbow Children’s Hospital, located in Munich, Germany, estimates that the hospital uses 30 kilowatt-hours of electricity per patient-day, and that the electric rate will be .10 eu...

Q: Refer to DCdesserts.com’s activity-based flexible budget in Exhibit

Refer to DCdesserts.com’s activity-based flexible budget in Exhibit 11–11. Suppose that the company’s activity in June is described as follows: R...

Q: Gibralter Insurance Company uses a flexible overhead budget for its application-

Gibralter Insurance Company uses a flexible overhead budget for its application-processing department. The firm offers five types of policies, with the following standard hours allowed for clerical pr...

Q: Johnson Electrical produces industrial ventilation fans. The company plans to manufacture

Johnson Electrical produces industrial ventilation fans. The company plans to manufacture 72,000 fans evenly over the next quarter at the following costs: direct material, $1,440,000; direct labor, $3...

Q: Fall City Hospital has an outpatient clinic. Jeffrey Harper, the

Fall City Hospital has an outpatient clinic. Jeffrey Harper, the hospital’s chief administrator, is very concerned about cost control and has asked that performance reports be prepared that compare bu...

Q: Flaming Foliage Sky Tours is a small sightseeing tour company in New

Flaming Foliage Sky Tours is a small sightseeing tour company in New Hampshire. The firm specializes in aerial tours of the New England countryside during September and October, when the fall color is...

Q: Rutherford Wheel and Axle, Inc., has an automated production process

Rutherford Wheel and Axle, Inc., has an automated production process, and production activity is quantified in terms of machine hours. A standard-costing system is used. The annual static budget for 2...

Q: Aunt Molly’s Old Fashioned Cookies bakes cookies for retail stores. The

Aunt Molly’s Old Fashioned Cookies bakes cookies for retail stores. The company’s best-selling cookie is chocolate nut supreme, which is marketed as a gourmet cooki...

Q: LawnMate Company manufactures power mowers that are sold throughout the United States

LawnMate Company manufactures power mowers that are sold throughout the United States and Canada. The company uses a comprehensive budgeting process and compares actual results to budgeted amounts on...

Q: Olive Company makes silver belt buckles. The company’s master budget appears

Olive Company makes silver belt buckles. The company’s master budget appears in the first column of the table. Required: Complete the table by preparing Olive’s fle...

Q: Match each of the terms by inserting the appropriate definition letter in

Match each of the terms by inserting the appropriate definition letter in the space provided. Not all definitions will be used. 1. Actual Accounting System 2. Direct Labor Efficiency Variance 3. Direc...

Q: The company actually washed 8,800 cars in August.

The company actually washed 8,800 cars in August. Required: Using Exhibit 9–5 as your guide, prepare the company’s flexible budget for August. Data from Exhibit 9-...

Q: The production supervisor of the Machining Department for Hagerstown Company agreed to

The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actual units produced...

Q: Steelcase Inc. (SCS) is one of the largest manufacturers

Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the followi...

Q: Meditech South Africa (Pty) Ltd provides software solutions to meet

Meditech South Africa (Pty) Ltd provides software solutions to meet the information needs of healthcare organizations in Africa and the Middle East. According to their website, the software can enco...

Q: AbulafiaSrl manufactures tyres for the Formula 1 motor racing circuit. For

AbulafiaSrl manufactures tyres for the Formula 1 motor racing circuit. For August 2018 Abulafia budgeted to manufacture and sell 3000 tyres at a variable cost of €74 per tyre and a total fixed cost of...

Q: The budgeted prices for direct materials, direct manufacturing labor and direct

The budgeted prices for direct materials, direct manufacturing labor and direct marketing (distribution) labor per attaché case are €40, €8 and â&#...

Q: Norland-Norge AS produces corporate notebooks. Each notebook is designed

Norland-Norge AS produces corporate notebooks. Each notebook is designed for an individual customer. The company’s operating budget for September 2018 included these data: The actual...

Q: 1. Prepare a comprehensive set of variances for each of the

1. Prepare a comprehensive set of variances for each of the four categories of cost of L’Evénement du Dimanche. 2. Comment on the results in requirement 1. What extra insights are available with a fle...

Q: MadetojaOy’s job-costing system has two direct-cost categories:

MadetojaOy’s job-costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to prod...

Q: Complete the following partial flexible budget performance report, and indicate whether

Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $80 per unit and variable cost...

Q: Sedona Company set the following standard costs for one unit of its

Sedona Company set the following standard costs for one unit of its product for this year. The $5.60 ($4.00 + $1.60) total overhead rate per direct labor hour (DLH) is based on a predicted activity le...

Q: Nina Co. prepared the following fixed budget for July using 7

Nina Co. prepared the following fixed budget for July using 7,500 units for budgeted sales. Actual sales were 7,200 units and actual costs are shown below. Prepare a flexible budget performance report...

Q: Lewis Co. reports the following fixed budget and actual results for

Lewis Co. reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results, and indicate whether each v...

Q: Refer to the information in Problem 23-1A. Phoenix Company

Refer to the information in Problem 23-1A. Phoenix Company reports the following actual results. Actual sales were 18,000 units. Required Prepare a flexible budget performance report for the year.

Q: Refer to the information in Problem 23-1B. Toho Company

Refer to the information in Problem 23-1B. Toho Company reports actual amounts for the year below. Actual sales were 24,000 units. Required Prepare a flexible budget performance report for the year....

Q: Business Solutions’s second-quarter 2022 fixed budget performance report for its

Business Solutions’s second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable ex...

Q: The fixed budget for 20,000 units of production shows sales

The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. If the company actually produces and sells 26,000 units, calculate the...

Q: The fixed budget for 20,000 units of production shows sales

The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. The company’s actual sales were 26,000 units at $480,000. Actual variab...

Q: How are flexible budget reports useful in management by exception?

How are flexible budget reports useful in management by exception?

Q: Chimes Limited has prepared a flexible budget for one of its factories

Chimes Limited has prepared a flexible budget for one of its factories for the year to 30 June 2021. The details are as follows: Additional information: 1 The company only expects to operate at a capa...

Q: Flag stags Brewery’s flexible budget estimates are $74,000,

Flag stags Brewery’s flexible budget estimates are $74,000, $77,000, and $80,000 to manufacture04,000, 4,500, and 5,000 gallons of beer, respectively, next quarter. What are the variable and fixed man...

Q: Outdoor Outfitters has created a flexible budget for the 70,000

Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters’ flexible budget at the 90,...

Q: The cost accountant for Upload Games Company prepared the following monthly performance

The cost accountant for Upload Games Company prepared the following monthly performance Report relating to the packaging department. Prepare a revised performance report in which the variances are co...

Q: What is a flexible budget? Explain how a flexible budget increases

What is a flexible budget? Explain how a flexible budget increases the usefulness of budgeting as a means of evaluating performance.

Q: Eight Flags is a retail department store. The following cost-

Eight Flags is a retail department store. The following cost-volume relationships were used in developing a flexible budget for the company for the current year. Management expected to attain a sales...

Q: XL Industries uses department budgets and performance reports in planning and controlling

XL Industries uses department budgets and performance reports in planning and controlling its manufacturing operations. The following annual performance report for the widget production department was...

Q: Sells is a retail department store. The following cost-volume

Sells is a retail department store. The following cost-volume relationships were used in developing a flexible budget for the company for the current year. Management expected to attain a sales level...

Q: Brae mar Saddler uses department budgets and performance reports in planning and

Brae mar Saddler uses department budgets and performance reports in planning and controlling. its manufacturing operations. The following annual performance report for the custom saddle production dep...

Q: Florence Ltd is a manufacturing company with a financial year ending on

Florence Ltd is a manufacturing company with a financial year ending on 31 December Year 1. The company manufactures wooden storage units for schools and colleges, each job being planned to meet a cus...

Q: 24. Calculation of direct labour variances shows a favourable labour rate

24. Calculation of direct labour variances shows a favourable labour rate variance of £5,000 and an adverse labour efficiency variance of £100. Which of the following sentenc...

Q: In an attempt to improve budgeting, the controller for Engersol,

In an attempt to improve budgeting, the controller for Engersol, Inc., has developed a flexible budget for overhead costs. Engersol, Inc., makes two types of products, commercial floor cleaners and ho...

Q: Ponderosa, Inc., produces wiring harness assemblies used in the production

Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sal...

Q: The controller for Muir Company’s Salem plant is analyzing overhead in order

The controller for Muir Company’s Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to concentrate on the past 12...

Q: Refer to Problem 8-35 for data. Required:

Refer to Problem 8-35 for data. Required: 1. Run a multiple regression equation using machine hours, number of setups, and number of purchase orders as independent variables. Prepare a flexible budget...

Q: Nuevo Company produces a single product. Nuevo employs a standard cost

Nuevo Company produces a single product. Nuevo employs a standard cost system and uses a flexible budget to predict overhead costs at various levels of activity. For the most recent year, Nuevo used a...

Q: Novo, Inc., wants to develop an activity f lexible budget

Novo, Inc., wants to develop an activity f lexible budget for the activity of moving materials. Novo uses eight forklifts to move materials from receiving to stores. The forklifts are also used to mov...

Q: Douglas Davis, controller for Marston, Inc., prepared the following

Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct la...

Q: In March, Nashler Company produced 163,200 units and had

In March, Nashler Company produced 163,200 units and had the following actual costs: Direct materials $1,170,000 Direct labor 258,000 Supplies 38,100 Maintenance 30,960 Power 29,300 Supervision 99,450...

Q: Wade Paving Company has a sealcoating activity and wants to develop a

Wade Paving Company has a sealcoating activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: • Five truck-mounted sealing units, wi...

Q: The management of Magnificent Modems Inc. (MMI) is uncertain

The management of Magnificent Modems Inc. (MMI) is uncertain as to the volume of sales that will exist in Year 1. The president of the company asked the chief accountant to prepare flexible budget inc...

Q: Monique’s Florals produced a special Mother’s Day arrangement that included eight roses

Monique’s Florals produced a special Mother’s Day arrangement that included eight roses. The standard and actual costs of the roses used in each arrangement follow....

Q: Cheney Company established a predetermined variable overhead cost rate at $21

Cheney Company established a predetermined variable overhead cost rate at $21.00 per direct labor hour. The actual variable overhead cost rate was $19.20 per hour. The planned level of labor activity...

Q: Exercise 8-5A Determining flexible budget variances Use the standard

Exercise 8-5A Determining flexible budget variances Use the standard price and cost data provided in Exercise 8-1A. Assume that the actual sales price is $11.76 per unit and that the actual variable c...

Q: Secor Educational Services had budgeted its training service charge at $120

Secor Educational Services had budgeted its training service charge at $120 per hour. The company planned to provide 30,000 hours of training services during Year 3. By lowering the service charge to...

Q: Muskrat Medical Equipment Company makes a blood pressure measuring kit. Jason

Muskrat Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department’s static budget and actual results for Year 3...

Q: Amity Company makes paint that it sells in 1-gallon containers

Amity Company makes paint that it sells in 1-gallon containers to retail home improvement stores. During Year 3, the company planned to make 190,000 gallons of paint. It actually produced 198,000 gall...

Q: Brisco Manufacturing Company established a predetermined variable overhead cost rate of $

Brisco Manufacturing Company established a predetermined variable overhead cost rate of $12.00 per direct labor hour. The actual variable overhead cost rate was $11.40 per direct labor hour. Brisco pl...

Q: Use the standard price and cost data provided in Exercise 8-

Use the standard price and cost data provided in Exercise 8-1B. Assume the actual sales price was $14.75 per unit and the actual variable cost was $6.80 per unit. The actual fixed manufacturing cost w...

Q: At the beginning of its most recent accounting period, Zelma Company

At the beginning of its most recent accounting period, Zelma Company had planned to clean 400 house roofs at an average price of $450 per roof. By reducing the service charge to $400 per roof, the com...

Q: Paul Hammond, president of Hammond Door Products Company, is evaluating

Paul Hammond, president of Hammond Door Products Company, is evaluating the performance of Jason Burke, the plant manager, for the last fiscal year. Mr. Hammond is concerned that production costs exce...

Q: Jasmin Sylvera is the manufacturing production supervisor for Feynman Motor Works (

Jasmin Sylvera is the manufacturing production supervisor for Feynman Motor Works (FMW), a company that manufactures electrical motors for industrial applications. Trying to explain why she did not ge...

Q: Kemp Tables Inc. (KTI) makes picnic tables of 2

Kemp Tables Inc. (KTI) makes picnic tables of 2 × 4 planks of treated pine. It sells the tables to large retail discount stores such as Walmart. After reviewing the following data generat...

Q: Irvine Publications established the following standard price and costs for a hardcover

Irvine Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $48.00 Materials cost 12.0...

Q: Howard Cooper, the president of Glacier Computer Services, needs your

Howard Cooper, the president of Glacier Computer Services, needs your help. He wonders about the potential effects on the firm’s net income if he changes the service rate that the firm charges its cus...

Q: The Redmond Management Association held its annual public relations luncheon in April

The Redmond Management Association held its annual public relations luncheon in April Year 2. Based on the previous year’s results, the organization allocated $25,290 of its operatin...

Q: Narcisco Publications established the following standard price and costs for a hardcover

Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $  90.00 Materials cost...

Q: Use the standard price and cost data supplied in Problem 8-

Use the standard price and cost data supplied in Problem 8-20A. Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow. Required 1. Determine th...

Q: Caribou Fruit Drink Company planned to make 200,000 containers of

Caribou Fruit Drink Company planned to make 200,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 400,000 cups of froze...

Q: Executive officers of Freedonia Seafood Processing Company are holding a planning session

Executive officers of Freedonia Seafood Processing Company are holding a planning session for fiscal Year 3. They have already established the following standard price and costs for their canned seafo...

Q: The Marketing Department of Barlett State University planned to hold its annual

The Marketing Department of Barlett State University planned to hold its annual distinguished visiting lecturer (DVL) presentation in October Year 4. The head of the department prepared the following...

Q: Ponca Food Corporation developed the following standard price and costs for a

Ponca Food Corporation developed the following standard price and costs for a refrigerated TV dinner that the company produces. Standard price and variable costs per unit Sales price $5.40 Materials c...

Q: Use the standard price and cost data supplied in Problem 8-

Use the standard price and cost data supplied in Problem 8-20B. Assume that Ponca actually produced and sold 432,000 units. The actual sales price and costs incurred follow. Required 1. Determine the...

Q: Watonga Swimsuit Specialties Inc. makes fashionable women’s swimsuits. Its most

Watonga Swimsuit Specialties Inc. makes fashionable women’s swimsuits. Its most popular swimsuit, with the Sarong trade name, uses a standard fabric amount of six yards of raw material with a standard...

Q: How are flexible budget variances determined? What causes these variances?

How are flexible budget variances determined? What causes these variances?

Q: The Berry Bowl sells fresh fruit cups from a cart. The

The Berry Bowl sells fresh fruit cups from a cart. The owner want to compare this quarter’s results with those for last quarter. The owner believes that the last quarterâ€...

Q: Goodwin Advisors offers financial advice on an hourly basis. The following

Goodwin Advisors offers financial advice on an hourly basis. The following information for the second quarter is the flexible budget based on the actual volume of 3,500 hours: The master budget for th...

Q: The master budget at Monroe Manufacturing last period called for sales of

The master budget at Monroe Manufacturing last period called for sales of 42,000 units at $42 each. The costs were estimated to be $26 variable per unit and $524,000 fixed. During the period, actual p...

Q: Fournier Fixtures produces a variety of manufactured items for the home and

Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following infor...

Q: Kentford Associates is a small professional services firm. Last month,

Kentford Associates is a small professional services firm. Last month, Kentford billed more hours than expected, and profits reflected this. Required Prepare a flexible budget for Kentford. Use billab...

Q: The master budget at Cherrylawn Corporation at the beginning of the year

The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 275,000 units with revenues of $3,300,000. Total variable costs were budgeted at $1,925,000 and fixed cos...

Q: Nottingham Forest Products reports the following information concerning operations for the most

Nottingham Forest Products reports the following information concerning operations for the most recent month: There are no inventories. Required Prepare a flexible budget for Nottingham Forest Product...

Q: The results for March for Savery Parts follow: /

The results for March for Savery Parts follow: Required Prepare a flexible budget for Savery Parts for March.

Q: Pease Contractors is a local home remodeling company. In analyzing financial

Pease Contractors is a local home remodeling company. In analyzing financial performance, the accountant compares actual results with a flexible budget. The standard direct labor rates used in the fle...

Q: The flexible budget for costs is computed by multiplying average total cost

The flexible budget for costs is computed by multiplying average total cost at the master budget activity level by the activity at some other level.” Is this true or false? Explain.

Q: A flexible budget is a. Appropriate for control of factory

A flexible budget is a. Appropriate for control of factory overhead but not for control of direct materials and direct labor. b. Appropriate for control of direct materials and direct labor but not fo...

Q: What is the basic difference between a master budget and a flexible

What is the basic difference between a master budget and a flexible budget? a. A flexible budget considers only variable costs; a master budget considers all costs. b. A master budget is based on a pr...

Q: The Main Street plant controller at Nowak Enterprises sends you the following

The Main Street plant controller at Nowak Enterprises sends you the following graph to explain the plant’s costs. Required Given the data shown in the graph, determine the following:...

Q: Golden Food Products produces special-formula pet food. The company

Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 120,000 cases at a budgeted price of $60 per...

Q: Midwest Manufacturing Company makes a single product that requires one hour of

Midwest Manufacturing Company makes a single product that requires one hour of labor for each unit. The budgeted output for 20X1 is 36,000 units. Fixed and variable overhead cost data are as follows:...

Q: 1. How would the distinction between fixed and variable costs help

1. How would the distinction between fixed and variable costs help management in forecasting cash needs for the business? 2. Explain how a flexible budget can be used by management to help control cos...

Q: In Woodinville Power Corporation’s factory, fixed indirect labor costs are $

In Woodinville Power Corporation’s factory, fixed indirect labor costs are $6,300 per month. Variable indirect labor costs are $1.40 per direct labor hour. The budget for the month of May 20X1 calls f...

Q: The accountant for C. Breit Products, Inc., has analyzed

The accountant for C. Breit Products, Inc., has analyzed the manufacturing overhead costs for the company’s assembly department. The fixed and variable costs follow: INSTRUCTIONS 1....

Q: Student Finance (StuFi) is a start-up that aims

Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current...

Q: Mercy Enterprise is a knitting company based in Dublin, Ireland.

Mercy Enterprise is a knitting company based in Dublin, Ireland. The following is the static budget and actual results of Mercy Ltd. for the month of April 2020. Mercy’s management i...

Q: Marcus McQueen has run In-A-Flash Car Detailing for

Marcus McQueen has run In-A-Flash Car Detailing for the past 10 years. His static budget and actual results for June 2020 are provided next. Marcus has one employee who has been with him for all 10 ye...

Q: Bruno Limited manufactures padlocks for which they have established unit standard costs

Bruno Limited manufactures padlocks for which they have established unit standard costs as shown below: During July, 400 padlocks were manufactured at the costs shown below. There was no opening stock...

Q: Consider the following two situations—cases A and B—independently

Consider the following two situations—cases A and B—independently. Data refer to operations for April 2020. For each situation, assume standard costing. Also assume...

Q: Omega’s Fleet Feet, Inc., produces dance shoes for stores all

Omega’s Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping de...

Q: Johns Manufacturing Company manufactures and sells rolling suitcases. After several years

Johns Manufacturing Company manufactures and sells rolling suitcases. After several years of increased sales, Johns experiences a drop in sales in 2020 from increased competition. Johns uses machine-h...

Q: Ronaldo’s Ice Cream produces summer ice creams for school pupils in Alaska

Ronaldo’s Ice Cream produces summer ice creams for school pupils in Alaska. The company has identified three significant activities and established three standard rates to allocate v...

Q: NWI is a service provider that offers computing resources measured in RAM

NWI is a service provider that offers computing resources measured in RAM (random-access memory)-hours to handle enterprise-wide applications. Information about variable overhead costs for March 2020...

Q: The Delta Company started business on January 1, 2020. The

The Delta Company started business on January 1, 2020. The company adopted a standard absorption costing system to produce ergonomic backpacks. Delta chose direct labor as the application base for ove...

Q: When is a flexible budget similar to a static budget? Why

When is a flexible budget similar to a static budget? Why?

Q: Which of the following is indicated by an unfavorable fixed overhead spending

Which of the following is indicated by an unfavorable fixed overhead spending variance? a. There was more excess capacity than planned b. The price of fixed overhead items cost more than budgeted c. T...

Q: Daytona Wheels is a Japanese tire manufacturer. For August 2021,

Daytona Wheels is a Japanese tire manufacturer. For August 2021, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs of $54,000. The budgeted selli...

Q: L’Accessorio, an Italian manufacturer of leather belts, budgeted prices for

L’Accessorio, an Italian manufacturer of leather belts, budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury belt&ac...

Q: Acme Company’s production budget for August is 17,500 units and

Acme Company’s production budget for August is 17,500 units and includes the following component unit costs: direct materials, $8; direct labor, $10; variable overhead, $6. Budgeted fixed overhead is...