Question

Question For Managerial accounting class: All the information is below

1. A is a retail company that sells shoes. Data concerning the company’s monthly revenues and costs appear below (Q  refers to the number of pairs of shoes sold):

	Formula
Revenue	$70 Q
Expenses:
Cost of merchandises	$30 Q
Wages and salaries	$130,000
Utilities	$12,000 + $2Q
Miscellaneous	$5000 + $3 Q

1. Prepare the company’s planning budget assuming that 30,000 pairs of shoes are expected to be sold. (1pt)

2. Assume that 25,000 pairs of shoes were actually sold. Prepare a flexible budget for this level of activity. (1pt)  

3. The actual results appear below. Prepare a performance report for the company.(1pt)

Revenue	$1,800,000
Purchases	$760,000
Wages and salaries	$135,000
Utilities	$65,000
Miscellaneous	$87,000

Answer 1

Ans. 1	Planning Budget
	Pairs of shoes	30000
	Revenue	$2,100,000
	Expenses:
	Cost of merchandise	$900,000
	Wages and salaries	$130,000
	Utilities	$72,000
	Miscellaneous	$95,000
	Total expenses	$1,197,000
	Net operating income	$903,000
Ans. 2	Flexible Budget
	Pairs of shoes	25000
	Revenue	$1,750,000
	Expenses:
	Cost of merchandise	$750,000
	Wages and salaries	$130,000
	Utilities	$62,000
	Miscellaneous	$80,000
	Total expenses	$1,022,000
	Net operating income	$728,000
Ans. 3	Flexible Budget Performance Report
		Actual Results	Spending variance	Flexible Budget	Activity variance	Planning Budget
	Pairs of shoes	25000			25000			30000
	Revenue	$1,800,000	$50,000	F	$1,750,000	$350,000	U	$2,100,000
	Expenses:
	Cost of merchandise	$760,000	$10,000	U	$750,000	$150,000	F	$900,000
	Wages and salaries	$135,000	$5,000	U	$130,000	$0	none	$130,000
	Utilities	$65,000	$3,000	U	$62,000	$10,000	F	$72,000
	Miscellaneous	$87,000	$7,000	U	$80,000	$15,000	F	$95,000
	Total expenses	$1,047,000	$25,000	U	$1,022,000	$175,000	F	$1,197,000
	Net operating income	$753,000	$25,000	F	$728,000	$175,000	U	$903,000
	*WORKING   NOTES :
	*Calculation of Flexible & Planning budget:
		Flexible Budget	Planning Budget
	Pairs of shoes	25,000	30,000					ekkarill92 Next > < Previous Related Solutions managerial accounting question A company produces and sells a product with the following information: Selling price per unit: $100 Variable cost per unit: $50 Fixed costs per month: $30,000 Expected sales volume per month: 1,000 units The company is considering a proposal to increase the selling price to $110 per unit, which is expected to reduce sales volume to 900 units per month. Alternatively, the company could reduce variable costs per unit to $45 by improving efficiency, which is expected to increase sales... Test scores for a sample of 20 students in a managerial accounting class are shown. (a)... Test scores for a sample of 20 students in a managerial accounting class are shown. (a) At α = .05, is there a difference in the population median scores on the two tests? Fill in the right side of the worksheet below. (Round your Rank, R+, and R– answers to 1 decimal place. Negative values should be indicated by a minus sign.) Student Test 1 Test 2 d |d| Rank R+ R– 9 52 53 12 95 96 8 71... describe managerial accounting and the role of managerial accounting in business. describe managerial accounting and the role of managerial accounting in business. [The following information applies to the questions displayed below.] Adams Company is a retail company that... [The following information applies to the questions displayed below.] Adams Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks: Required October sales are estimated to be $200,000, of which 40 percent will be cash and 60... Both managerial accounting and financial accounting provide useful information to decision makers. Exercise 14-1 Sources of accounting information LO C1 Both managerial accounting and financial accounting provide useful information to decision makers. Indicate in the following table the primary source of information for each business decision. Primary Information Source Business Decision.Business DecisionPrimary Information Source1.Prepare budgets for the next year2.Estimate profits from a new service opportunity3.Prepare GAAP-based financial statements for external auditor4.Estimate product cost for a new line of shoes5.Determine whether to automate a production process6.Prepare financial reports according to GAAP7.Report financial performance to... Required information [The following information applies to the questions displayed below.] Rooney Company is a retail... Required information [The following information applies to the questions displayed below.] Rooney Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required October sales are estimated to be $240,000, of which 40 percent will be... Managerial Accounting Managerial Accounting All questions below analyze the same company. The information below will be needed to answer all... All questions below analyze the same company. The information below will be needed to answer all questions. Consider the following information regarding ABC Corporation. 2009 2010 Sales ($ millions) 1000 1112 Cost of Goods Sold ($ millions) 500 556 Other Expenses ($ millions) 100 111 Depreciation ($ millions) 100 100 Interest Expense ($ millions) 50 55 Total Current Assets ($ millions) 600 700 Net Fixed Assets ($ millions) 1800 2000 Total Current Liabilities ($ millions) 450 550 Long-term Liabilities ($... Discuss the importance of understanding managerial accounting in all career fields and roles. Discuss the importance of understanding managerial accounting in all career fields and roles. Chapter 18:             Managerial accounting information:            Is used mainly by external users.         Chapter 18:             Managerial accounting information:            Is used mainly by external users.            Involves gathering information about costs for planning and control decisions.            Is generally the only accounting information available to managers.            Can be used for control purposes but not for planning purposes.            Has little to do with controlling costs.             Managerial accounting is different from financial accounting in that:            Managerial accounting is more focused on the organization as a whole and financial accounting is... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions Read at least 2 academically reviewed articles and Write an annotated bibliography paper on Master Budgeting Why normalization and referential integrity are important principles when designing relational databases? Respond to the following in a minimum of 175 words: Discuss what elements should be present... 1) The 3rd bright fringe of a double slit interference pattern is 30.0 cm above the... A solar cell generates a potential difference of 0.320 V when a 445.0 ? resistor is... A ceiling fan consists of a small cylindrical disk with 5 thin rods coming from the... You measure the following quantities as A = 1.0 m ± 0.2 m, B = 2.0... ADVERTISEMENT About @ 2020 WizEdu