The manager of Coronado, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the ompany's actual performance. Sales volume came in lower than expected, at 5,200 units, compared with budgeted sales of 5,600 nits. Coronado's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $48 per unit. udgeted fixed costs totaled $124,800. There were no variable SG&A costs. Prepare Coronado's flexible budget for the year just ended. $

The manager of Coronado, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the ompany's actual performance. Sales volume came in lower than expected, at 5,200 units, compared with budgeted sales of 5,600 nits. Coronado's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $48 per unit. udgeted fixed costs totaled $124,800. There were no variable SG&A costs. Prepare Coronado's flexible budget for the year just ended. $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 5CE: Uchdorf Manufacturing just completed a study of its purchasing activity with the objective of...

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Uchdorf Manufacturing just completed a study of its purchasing activity with the objective of improving its efficiency. The driver for the activity is number of purchase orders. The following data pertain to the activity for the most recent year: Activity supply: five purchasing agents capable of processing 2,400 orders per year (12,000 orders) Purchasing agent cost (salary): 45,600 per year Actual usage: 10,600 orders per year Value-added quantity: 7,000 orders per year Required: 1. Calculate the volume variance and explain its significance. 2. Calculate the unused capacity variance and explain its use. 3. What if the actual usage drops to 9,000 orders? What effect will this have on capacity management? What will be the level of spending reduction if the value-added standard is met?
The manager of Coronado, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company's actual performance. Sales volume came in lower than expected, at 5,200 units, compared with budgeted sales of 5,600 units. Coronado's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $48 per unit. Budgeted fixed costs totaled $124,800. There were no variable SG&A costs. Prepare Coronado's flexible budget for the year just ended. : +A $
During the current year, OutlyTech Corp. expected to sell 24,000 telephone switches. Fixed costs for the year were expected to be $12,144,000, the unit sales price was budgeted at $3,200, and unit variable costs were budgeted at $1,440.OutlyTech's margin of safety (MOS) in sales dollars is:
During the current year, OutlyTech Corp. expected to sell 22,600 telephone switches. Fixed costs for the year were expected to be $12,143,000, the unit sales price was budgeted at $3,300, and unit variable costs were budgeted at $1,440.OutlyTech's margin of safety (MOS) in units is (rounded up to nearest whole number):
The manager of Bonita, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company’s actual performance. Sales volume came in lower than expected, at 4,900 units, compared with budgeted sales of 5,400 units. Bonita’s budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $52 per unit. Budgeted fixed costs totaled $137,100. There were no variable SG&A costs.
During the current year, Mute Corporation expected to sell 24,700 telephone switches. Fixed costs for the year were expected to be $12,147,500, the unit sales price was budgeted at $3,550, and unit variable costs were budgeted at $1,720. Mute's margin of safety (MOS) in units is
AAA Manufacturing Firm has provided the following sales, cost and expense figures in relation to expected operations for the coming year. You are tasked to prepare forecast Statements of Financial Performance using flexible budget techniques and incorporating the following information.All units are sold when manufactured due to the highly perishable nature of the company’s product. As such there are no inventories of raw materials, work in process or finished goods on hand.The selling price of the company’s single product is $50.00 and the expected sales quantity for the coming year is in the vicinity of 20,000 and 25,000 units.Required: Prepare an Income Statement budget using flexible budgeting techniques at production and sales levels of:(Scenario a) 20,000 units(Scenario b) 25,000 units Question: 1. Total fixed factory overhead under Scenario A (No dollar sign and comma) 2. Gross profit under Scenario B? (No dollar sign and comma) 3. Total non-manufacturing expenses under…
Top managers of Ekblad Industries predicted the following year’s sales of 150,000 units of its product at a unit price of $9.00. Actual sales for the year were 144,000 units at $11.60 each. Variable expenses were budgeted at $2.50 per unit, and actual variable expenses were $2.80 per unit. Actual fixed expenses of $430,000 exceeded budgeted fixed expenses by $27,500. Prepare a report showing actual results, a static budget and a flexible budget. Explain the significance of a flexible budget versus a static budget.
Armati, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, Inc., had the following budgeted data: Unit sales for 2011 26,000 Unit production for 2011 26,000 Budgeted fixed costs for 2011: $2,900 Budgeted variable costs per unit: Direct materials $0.15 Direct labor $0.29 The following actually occurred: Actual unit sales for 2011 24,000 Actual unit production for 2011 28,000 Actual fixed costs for 2011: $2,950 Actual variable costs: $10,650 The flexible budget variance for total cost for 2011 is A. $1,280 U. B. $1,620 F. C. $1,670 F. D. $50 U.
As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you've been asked to do some what-if analyses. Following is the budgeted Information regarding the coming year: Selling price per unit Variable cost per unit Fixed costs (per year) Required: $ 100.00 60.00 1,113,040 1. What is the breakeven volume, in units and dollars, for the coming year? 2. Assume that the goal of the company is to earn a pretax (operating) profit of $316,000 for the coming year. How many units would the company have to sell to achieve this goal? 3. Assume that of the $60 variable cost per unit the labor-cost component is $27. Current negotiations with the employees of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effect on the breakeven point in units if selling price and fixed costs are as planned, but the labor cost for the coming year is…
During the current year, Mute Corporation expected to sell 22,200 telephone switches. Fixed costs for the year were expected to be $12,141,000, the unit sales price was budgeted at $3,100, and unit variable costs were budgeted at $1,280. Mute's margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.)
In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.Becker Sofa Company's margin of safety (MOS) in sales dollars is: