Question
In: Accounting
COST MANAGMENT : Robinson Company has two products, A and B. Robinson’s budget for August follows:...
COST MANAGMENT : Robinson Company has two products, A and B. Robinson’s budget for August follows:
| Master Budget | |||||||
| Product A | Product B | ||||||
| Sales | $ | 300,000 | $ | 576,000 | |||
| Variable cost | 180,000 | 432,000 | |||||
| Contribution margin | $ | 120,000 | $ | 144,000 | |||
| Fixed cost | 108,000 | 48,000 | |||||
| Operating income | $ | 12,000 | $ | 96,000 | |||
| Selling price | $ | 125 | $ | 60 | |||
On September 1, these operating results for August were reported:
| Operating Results | |||||||
| Product A | Product B | ||||||
| Sales | $ | 165,000 | $ | 682,000 | |||
| Variable cost | 105,000 | 528,000 | |||||
| Contribution margin | $ | 60,000 | $ | 154,000 | |||
| Fixed cost | 108,000 | 48,000 | |||||
| Operating income | $ | (48,000 | ) | $ | 106,000 | ||
| Units sold | 1,500 | 11,000 | |||||
Required:
1. For each product, determine the following variances measured in dollars of contribution margin:
Product A U/F Product B U/F
Flexible-budget variance
Sales volume variance
Sales quantity variance
Sales mix variance
Solutions
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ekkarill92 answered 2 years agoRelated Solutions
It is September and the budget is as follows: July Budget July Actuals August Budget August...
It is September and the budget is as follows:
July
Budget
July
Actuals
August
Budget
August
Actuals
INCOME
Accommodation
3150
5020
2940
3670
Food
1680
1820
1890
2040
Beverages
1638
1680
1680
1896
TOTAL REVENUE
6468
8520
6510
7606
EXPENSES
Overhead
Stock
1,327
2,100
1,428
2,300
Lease
1,500
1,500
1,500
1,500
Repairs/maintenance
400
600
400
300
Advertising
200
200
200
200
Laundry
800
1,000
800
950
Wages
1,617
1,532
1,628
1,450
Miscellaneous
600
560
600
400
TOTAL EXPEND.
6,444
7,492...
The Red Company makes two products. Cost data for these two products is as follows: Product...
The Red Company makes two products. Cost data for these two
products is as follows:
Product A
Product B
Selling price
$10
$20
Variable costs
7
12
Total annual fixed costs are $840,000. The firm's experience has
been that about 20 percent of unit sales come from product A, 80
percent from B.
The Red Company is taxed at 30%
Required:
a.
Determine the number of units to be sold at the break-even
point.
b.
Determine the number of units...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
10
%
20
%
?
%
S2
10
%
—
?
30
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$
180,000
S2
60,000
P1
50,000
P2
120,000
Required:
1. Determine the total cost...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
20
%
30
%
?
%
S2
20
%
—
?
40
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$220,000
S2
$74,000
P1
$61,000
P2
$175,000
Required:
1. Determine the total cost of...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
20
%
30
%
?
%
S2
20
%
—
?
40
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$
265,000
S2
83,000
P1
70,000
P2
220,000
Required:
1. Determine the total cost...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
TO
FROM
S1
S2
P1
P2
S1
-
20%
30%
?%
S2
20%
-
?
40%
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$ 220,000
S2
$74,000
P1
$ 61,000
P2
$175,000
Required:
1. Determine the total cost of P1 and...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
20
%
30
%
?
%
S2
20
%
—
?
40
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$
250,000
S2
80,000
P1
67,000
P2
205,000
Required:
1. Determine the total cost...
Exercise 7-29 Departmental Cost Allocation [LO 7-3] Robinson Products Company has two service departments (S1 and...
Exercise 7-29 Departmental Cost Allocation [LO 7-3]
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
20
%
30
%
?
%
S2
20
%
—
?
40
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$
170,000
S2
64,000
P1
51,000
P2...
A company sells only two products, Product A and Product B, and has the following cost...
A company sells only two products, Product A and Product B, and
has the following cost information:
Selling price per unit – Product
A $4
Selling price per unit – Product
B $5
Variable cost per unit – Product
A $2
Variable cost per unit – Product
B $3
Total fixed
costs $840
The company sells two units of Product A for each unit it sells
of Product B. The company faces an income tax rate of 30%.
A) What is the breakeven point in...
A company makes two products, the variable costs are as follows; Product A Product B £...
A company makes two products, the variable costs are as
follows;
Product A Product B
£ £
Direct materials 1 3
Direct labour (£6 per hour) 6 3
Variable overhead 1 1
8 7
The sale price of A is £14 and B is £11. During the month of
July the availability of Direct Labour is limited to 5000 hours due
to staff taking holidays. Sales demand is expected to be 3000 units
of A and 5000 units of B....
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