Calculate the variance for each of these categories, and indicate whether it was a deficit or surplus.
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Fran Bowen created the following budget:
Budget | |||
Food | $ 372 | Clothing | $ 134 |
Transportation | 402 | Personal expenses and recreation | 336 |
Housing | 1,033 |
She actually spent $397 for food, $437 for transportation, $994 for housing, $218 for clothing, and $282 for personal expenses and recreation. Calculate the variance for each of these categories, and indicate whether it was a deficit or surplus.
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- Fran Powers created following budget and reported actual spending listed. Calculate the variance for each catagory and indicate whether it is Deficit or Surplus: Item Budggeted Actual Variance Deficit/Surplus Food $360 $298Automobile $320 $334Housing $950 $982Clothing $110 $134Personal $275 $231Fran Bowen created the following budget: Food, $350 Clothing, $100 Transportation, $320 Personal expenses and recreation, $275 Housing, $950 She actually spent $298 for food, $337 for transportation, $982 for housing, $134 for clothing, and $231 for personal expenses and recreation. Calculate the variance for each of these categories, and indicate whether it was a deficit or a surplus.2. Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was $80,900 (for 17,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.)
- All of the accounts payable are for inventory purchases and all inventory items are purchased on account. What are the estimated cash disbursements for inventories for the budget period? * (1 Point) Sample format: 1,111,111 NUBD Co., a merchandising firm, is preparing its master budget and has gathered the following data to help budget cash disbursements: Budgeted data: Cost of goods sold Desired decrease in inventories Desired decrease in accounts payable P1,680,000 P80,000 P150,000Please show how (step-by-step) you get the numbers for each account in the Flexible budget column. Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Actual Results Planning Budget Variances Customers served........................................ 24,000 25,000 Revenue ($3.60q)......................................... $85,700 $90,000 $4,300 U Expenses: Wages and salaries ($22,200 + $1.20q)...... 48,900 52,200 3,300 F Supplies ($0.50q)...................................... 13,000 12,500 500 U Insurance ($5,700)..................................... 5,600 5,700 100 F Miscellaneous expense ($4,500 +…We discuss how to prepare the different component budgets of theoperating budget, including the sales, production, direct materials,direct labor, manufacturing overhead, cost of goods sold, andselling and administrative expense budgets. We also discuss howto use information from all of these operating budgets to prepare abudgeted income statement. Knowledge Check 05WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7.The company is projecting sales of 1,000 units for the month of March. The totalcost of producing one unit includes $2 for direct materials, $1 for direct labor,and $0.50 for manufacturing overhead.Calculate the cost of goods sold for the month of March.
- Use the following information for Questions 16 & 17 Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for December: Revenue Personnel expenses Medical supplies 16. $ 134,170 $ 80,776 $ 17,302 Occupancy expenses $ 15,754 Administrative expenses$ 8,296 17. C. d. Fixed element per month a. b. $0 $ 32,400 $76,620 $77,156 $79,809 $80,776 C. d. 1,500 9,100 6,700 $ 49,700 The personnel expenses in the flexible budget for December would be closest to: a. b. Variable element per client-visit $ 40.00 $13.40 4.80 2.10 0.40 $ 20.70 The net operating income in the flexible budget for December would be closest…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. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses Rent (a) Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Budget 8,000 $2,400 720 3,600 1,600 8,320 1,500 1,200 800 500 4,000 $12,320 Actual $2,600 850 10,000 2,000 Favorable 4,100 1,400 8,950 1,500 1,200 800 500 4,000 Difference $12,950 Favorable Unfavorable Neither Favorable nor Unfavorable $200 Unfavorable 130 Unfavorable 500 Unfavorable 200 Favorable 630 Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $630…[The following information applies to the questions displayedbelow.]We discuss how to prepare the different component budgets of theoperating budget, including the sales, production, direct materials,direct labor, manufacturing overhead, cost of goods sold, andselling and administrative expense budgets. We also discuss howto use information from all of these operating budgets to prepare abudgeted income statement. WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. Thecompany is projecting sales of 1,000 units for the month of March. There are 30units in the beginning inventory. Each unit requires 20 ounces of raw materials and0.20 direct labor hours to make. The company's policy is to keep ending finishedgoods inventory of 10% of the current month's sales. Selling and administrativeexpenses for the month have been budgeted at $2,000.Knowledge Check 02Assume that the beginning raw materials inventory is 2,000 ounces. If the desiredending raw materials…
- 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…Distinguish between a standard and a budget. BE11.1 (LO 1 ), AP Lopez Company uses both standards and budgets. For the year, estimated production of Product X is 500,000 units. Total estimated cost for materials and labor are $1,400,000 and $1,700,000 , respectively. Compute the estimates for (a) a standard cost and (b) a budgeted cost.[The following information applies to the questions displayedbelow.]We discuss how to prepare the different component budgets of theoperating budget, including the sales, production, direct materials,direct labor, manufacturing overhead, cost of goods sold, andselling and administrative expense budgets. We also discuss howto use information from all of these operating budgets to prepare abudgeted income statement. WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7.The company is projecting sales of 1,000 units for the month of March. Thereare 30 units in the beginning inventory. Each unit requires 20 ounces of rawmaterials and 0.20 direct labor hours to make. The company's policy is to keepending finished goods inventory of 10% of the current month's sales. Selling andadministrative expenses for the month have been budgeted at $2,000.How many units should WellWheats produce in March?