Folsom Fashions sells a line of women's dresses. Folsom's performance report for November is shown below. (CMA adapted) The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income. Dresses sold Sales Variable costs Contribution margin Fixed costs Operating income 5,000 Actual $235,000 ($145,000) $90,000 ($84,000) $6,000 Budget 6,000 $300,000 ($180,000) $120,000 ($80,000) $40,000 1. The effect of the sales quantity variance on the contribution margin for November is: $30000 U, $18000 U, $20000 U, $15000 U 2. The sales price variance for November is: $30000 U, $18000 U, $20000 U, $15000 U

Folsom Fashions sells a line of women's dresses. Folsom's performance report for November is shown below. (CMA adapted) The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income. Dresses sold Sales Variable costs Contribution margin Fixed costs Operating income 5,000 Actual $235,000 ($145,000) $90,000 ($84,000) $6,000 Budget 6,000 $300,000 ($180,000) $120,000 ($80,000) $40,000 1. The effect of the sales quantity variance on the contribution margin for November is: $30000 U, $18000 U, $20000 U, $15000 U 2. The sales price variance for November is: $30000 U, $18000 U, $20000 U, $15000 U

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 20BEA: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...

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Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Refer to the information for Pizza Vesuvio on the previous page. Coefficients shown by a regression program for Pizza Vesuvios data are: Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor and the variable rate per employee hour. 2. Construct the cost formula for total labor cost. 3. Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted. (Note: Round answers to the nearest dollar.) Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
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Aero Travel Trailer Manufacturing is working on budgeting utility cost. The controller has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs: - Hours worked Utility cost incurred Low point 1,300 $ 903 High point 1,680 1,074 If 1,425 hours are worked in a month, total utility cost (rounded to the nearest dollar) using the high-low method should be Group of answer choices $947. $959. $954. $976.
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Sarasota Company for the month of October. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable: Fixed expenses SARASOTA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses Budget 8,640 $2,592 864 3,888 1,728 9,072 1,620 1,296 864 540 4,320 $13,392 $2,808 Actual 10,800 2.160 Favorable A 918 4,428 1.512 9.666 1,620 1,296 864 540 Difference Favorable Unfavorable 4,320 $13.986 Neither Favorable nor Unfavorable $216 Unfavorable 54 Unfavorable 540 Unfavorable 216 Favorable. 594 Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable…
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i Required information [The following information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month Variable Element per Customer Served Actual Total for May $ 6,600 $ 213,500 $ 62,000 $ 2,300 $ 141,100 $ 540 $ 15,700 $ 41,000 $ 38,900 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 5. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive…
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