Question
In: Accounting
RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs...
RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs of $32,760, and fixed costs of $20,000. During the most recent period, the company incurred $32,200 of variable costs to produce and sell 20,000 units for $85,200. During this same period, the company earned $25,200 of operating income.
Required:
1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)
a. Flexible-budget operating income.
b. Flexible-budget variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?
c. Flexible-budget variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?
d. Sales volume variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?
e. Sales volume variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
RTI Company’s master budget calls for production and sale of 18,100 units for $81,450, variable costs...
RTI Company’s master budget calls for production and sale of
18,100 units for $81,450, variable costs of $30,770, and fixed
costs of $18,000. During the most recent period, the company
incurred $34,100 of variable costs to produce and sell 18,000 units
for $84,000. During this same period, the company earned $23,000 of
operating income.
QUESTIONS:
1. Determine the following for RTI Company: (Do not
round intermediate calculations. Round your answers to the nearest
whole dollar.)
a. Flexible-budget operating income.
b....
RTI Company’s master budget calls for production and sale of 19,300 units for $98,430; variable costs...
RTI Company’s master budget calls for production and sale of
19,300 units for $98,430; variable costs of $44,390; and fixed
costs of $18,600. During the most recent period, the company
incurred $33,300 of variable costs to produce and sell 18,600 units
for $86,300. During this same period, the company earned $26,300 of
operating income. (Do not round intermediate calculations.
Round final answer to the nearest whole dollar.)
Required:
1.
Determine the following for RTI Company:
a.
Flexible-budget operating income.
b....
1)A company’s flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and...
1)A company’s flexible budget for 12,000 units of production
showed sales, $48,000; variable costs, $18,000; and fixed costs,
$16,000. The variable costs expected if the company produces and
sells 16,000 units is:
Multiple Choice
$48,000.
$64,000.
$40,000.
$24,000.
$18,000.
2)A company’s flexible budget for 12,000 units of production
showed sales, $48,000; variable costs, $18,000; and fixed costs,
$16,000. The contribution margin expected if the company produces
and sells 16,000 units is:
Multiple Choice
$48,000.
$64,000.
$40,000.
$24,000.
3) =
Hassock...
Easton Pump Company’s planned production for the year just ended was 18,200 units. This production level...
Easton Pump Company’s
planned production for the year just ended was 18,200 units. This
production level was achieved, and 21,800 units were sold. Other
data follow:
Direct material
used
$
562,380
Direct labor
incurred
291,200
Fixed
manufacturing overhead
393,120
Variable
manufacturing overhead
191,100
Fixed selling
and administrative expenses
303,940
Variable selling
and administrative expenses
91,910
Finished-goods
inventory, January 1
4,500
units
The cost per unit remained the same in the current year as in the
previous year. There were no...
Acme Company’s production budget for August is 18,100 units and includes the following component unit costs:...
Acme Company’s production budget for August is 18,100 units and
includes the following component unit costs: direct materials,
$8.00; direct labor, $10.50; variable overhead, $6.50. Budgeted
fixed overhead is $38,000. Actual production in August was 19,872
units. Actual unit component costs incurred during August include
direct materials, $9.00; direct labor, $10.00; variable overhead,
$7.50. Actual fixed overhead was $40,100.
Required:
Prepare a performance report, including each cost component.
(Indicate the effect of each variance by selecting "F" for
favorable, "U"...
Acme Company’s production budget for August is 18,900 units and includes the following component unit costs:...
Acme Company’s production budget for August is 18,900 units and
includes the following component unit costs: direct materials,
$7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted
fixed overhead is $46,000. Actual production in August was 21,840
units. Actual unit component costs incurred during August include
direct materials, $9.60; direct labor, $10.80; variable overhead,
$6.20. Actual fixed overhead was $48,900.
Required:
Prepare a performance report, including each cost component.
(Indicate the effect of each variance by selecting "F" for
favorable, "U"...
Acme Company’s production budget for August is 19,500 units and includes the following component unit costs:...
Acme Company’s production budget for August is 19,500 units and
includes the following component unit costs: direct materials,
$8.00; direct labor, $12.00; variable overhead, $6.00. Budgeted
fixed overhead is $52,000. Actual production in August was 21,450
units.
Required:
Prepare a flexible budget that would be used to compare against
actual production costs for August. (Round "Cost per unit"
to 2 decimal places.)
A company's flexible budget for 5,732 units of production showed sales $112,768; variable costs $42,130; and...
A company's flexible budget for 5,732 units of production showed
sales $112,768; variable costs $42,130; and fixed costs $22,109.
The flexible budget operating income expected if the company
produces and sells 4,249 units is: Answer to nearest whole dollar
without any commas, decimal points, or words (e.g. 1000 not
1,000.00 or increase 1000). Enter a negative number as -10 not
(10).
A company's flexible budget for 5,732 units of production showed sales $112,768; variable costs $42,130; and...
A company's flexible budget for 5,732 units of production showed
sales $112,768; variable costs $42,130; and fixed costs $22,109.
The flexible budget operating income expected if the company
produces and sells 4,249 units is: Answer to nearest whole dollar
without any commas, decimal points, or words (e.g. 1000 not
1,000.00 or increase 1000). Enter a negative number as -10 not
(10).
"MBACO" has an annual production capacityof 20,000 units. The costs associated with the production and sale...
"MBACO" has an annual production capacityof 20,000 units. The
costs associated with the production and sale of the company's
product are given below: LE 15 Per unit variable manufacturing cost
100,000 Total fixed manufacturing cost 5 Per unit variable selling
and administrative cost (Include sales commissions 10% of sales)
60,000 Total fixed selling and administrative cost The company
presently is selling 15,000 units annually at a selling price of LE
30 each. A special order has been received from a...
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