PROBLEM 9. Basic Foods expected to sell 30,000 of its fishcharon at P300 each. It actually sold 29,000 at P298. Variable cost per pack is P140. Determine the sales price variance and sales volume variance.
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- Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?5. Archer's cost accountant prepared the following static budget based on expected activity of 4,000 units for the May 2022 accounting period: Sales Revenue $64,000 Variable Costs (34.000) Contribution Margin $30,000 (20.000) $10,000 Fixed Costs Net Income a. If Archer's sales manager were to prepare a flexible budget for expected activity of 4,300 units, budgeted net income on this flexible budget would be? b. If Archer actually produced and sold 4,300 units at $20 each, what is the sales revenue activity/volume variance? Indicate favorable / unfavorable variances c. If Archer actually incurred the following costs during May 2022: Sales Revenue Variable Costs Contribution Margin $49,000 Fixed Costs $86,000 (37.000) (22.000) $27,000 Net Income The flexible budget variance for: Indicate favorable / unfavorable variances i. Fixed costs: ii. Variable costs:Magika Enterprises has prepared the following budget for the month of November: Selling Price Variable Cost per unit per unit Unit Sales Product A ₱ 10 ₱ 4 15,000 Product B ₱ 15 ₱ 8 20,000 Product C ₱ 18 ₱ 8 5,000 If the Fixed Costs amount to ₱150,000, the break-even point in SALES amount to ₱________________. For uniformity of answers, for interim calculations, use 5 decimal places and round-off the final answer to a whole number.
- ⦁ XYZ Company budgeted to produce 20,000 units for the year ending December 31, 2021 at sales revenue of $400,000 and fixed cost of $150,000 and variable costs of $80,000. During the year ended December 31,2022, it produced 26,000 units. Required:Prepare a flexible budget, in good form, to reflect its level of attainment in a performance report. Use the following headings: Static budget, flexible budge and Variances (Fav or UF)a) Why do successful companies tend to use the bottom-up approach to establish a master budget? b) Green Tea’s data show the following information for the financial year, beginning July 2020: July Aug. Sept. Oct. Nov. Estimated sales (units) 25,000 25,000 27,000 27,500 28,000 Sales price per unit $31 $31 $31 $31 $31 Direct labour per unit $1.75 $1.75 $1.50 $1.50 $1.50 Labour rate per hour $21 $21 $24 $24 $24 New machinery will be added in September. This machine will reduce the labour required per unit and increase the labour rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month’s requirements. Direct material requires 2.5 kg per unit at a cost of $5 per kg. The ending inventory required for direct materials is 20% of the next month’s needs. In July, the beginning inventory is 3,750 units of finished goods and 13,125 kg of…The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(
- Cost Accounting The following budget is prepared by the Production manager for the last quarter of 2021:Units Total CostOctober 7500 530000November 6000 440000December 5000 380000 1. What is the variable cost per unit? ______2. How much is the fixed cost? ______3. What is the estimated budget for 6500 units?______Question 1: Sira Company which is based on Jeddah manufactures and sells product Z. The following data are available for preparing budgets for product Z for the first 2 quarters of 2022: 1. Sales: quarter 1, 20,000 units; quarter 2, 30,000 units. Selling price is SARI50 per unit. 2. Direct materials: each unit of product Z requires 5 pounds of material at a cost of SARS per pound. 3. Desired inventory levels: Type of Inventory Finished goods (units) Material (pounds) January 1 5,000 10,000 April 1 10,000 July 1 15,000 12,000 15,000 4. Direct labor: direct labor time is 2 hours per unit at an hourly rate of SAR10 per hour. 5. The manufacturing overhead budget shows expected costs to be 120% of direct labor cost. 5. Selling and administrative expenses are expected to be SAR20 per unit of sales plus SAR200,000 per quarter. 6. Interest expense is SAR200,000. 7. Income taxes are expected to be 30% of income before income taxes. Required: • Prepare the budgeted multiple-step income statement…Mae Company prepared the following preliminary budget assuming no advertising expenditures: Selling price P10 per unit Unit sales 100,000 Variable expenses P600,000 Fixed expenses P300,000 Based on a market study, the company estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if P100,000 were spent on advertising. Assuming that these changes are incorporated in its budget, what should be the budgeted net operating income?
- Top managers of White Industries predicted 2024 sales of 14,700 units of its product at a unit price of $8.00. Actual sales for the year were 14,000 units at $10.50 each Variable costs were budgeted at $2.40 per unit, and actual variable costs were $2.50 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed coats by $5,200. Prepare White's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year, First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any 50 variances, leave the Favorable (FyUnfavorable (U) input blank) Units Sales Revenue Vanable Costs Contribution Margin Budget Amounts Per Unit White Industries Flexible Budget Performance Report For the Year Ended December 31,…II. FILL in the Table below. SAFARRI COMPANY Sales Budget For the Year Ending December 31, 2020 SALES BUDGET Formula Forecasted unit Quarter 3 7,000 Quarter 1 Quarter 2 Quarter 4 5,500 6,000 8,000 sales X Price per unit Total Gross Sales 10 10 12 12PROBLEM 10 The controller of Palma Company is examining the following budgeted and actual income statements for its principal product for 2021. All amounts are in thousands of pesos. Budget P4,800.0 1,668.0 P3,120.0 Actual P4,967.2 1,780.8 P3,186.4 Sales Variable cost Contribution margin The budgeted unit selling price is P8.00. Actual unit volume is 6% over budget, but the actual selling price is below budget. Per-unit variable costs are incurred as budgeted. Determine the sales price variance and sales volume variance.