Question
In: Accounting
Kite Company has the following report for August: Flexible Sales Actual budget Flexible activity Master Results...
Kite Company has the following report for August:
|
Flexible |
Sales |
||||
|
Actual |
budget |
Flexible |
activity |
Master |
|
|
Results |
variances |
budget |
variances |
budget |
|
|
Units |
? |
12000 |
4000 U |
? |
|
|
Sales revenue |
? |
12000 F |
168000 |
? |
? |
|
Variable mfg. costs |
96000 |
? |
? |
? |
120000 |
|
Variable mktg. costs |
? |
4800 U |
21600 |
? |
? |
|
Contribution margin |
57600 |
? |
? |
18800 U |
75200 |
Fill in the missing amounts. For items in the variances columns, indicate F or U.
Solutions
Expert Solution
| Flexible | Sales | ||||
| Actual | budget | Flexible | activity | Master | |
| Results | variances | budget | variances | budget | |
| Units | 12,000 | 12,000 | 4000 U | 16,000 | |
| Sales revenue | 1,80,000 | 12000 F | 1,68,000 | 56000 U | 2,24,000 |
| Variable mfg. costs | 96,000 | 6000 U | 90,000 | 30000F | 1,20,000 |
| Variable mktg. costs | 26,400 | 4800 U | 21,600 | 7200 F | 28,800 |
| Contribution margin | 57,600 | 1200F | 56,400 | 18800 U | 75,200 |
Working:
| Flexible | Sales | ||||
| Actual | budget | Flexible | activity | Master | |
| Results | variances | budget | variances | budget | |
| Units |
12,000 (Same as Flexible budget) |
12,000 | 4000 U |
16,000 (12000+4000) |
|
| Sales revenue |
1,80,000 (168000+12000) |
12000 F | 1,68,000 |
56000 U (168000-224000) |
2,24,000 (168000/12000)*16000 |
| Variable mfg. costs | 96,000 |
6000 U (90000-96000) |
90,000 (120000/16000)*12000 |
30000F (120000-90000) |
1,20,000 |
| Variable mktg. costs |
26,400 (21600+4800) |
4800 U | 21,600 |
7200 F (28800-21600) |
28,800 (21600/12000)*16000 |
| Contribution margin | 57,600 |
1200F (57600-56400) |
56,400 (75200-18800) |
18800 U | 75,200 |
Please give positive rating.
ekkarill92 answered 2 years agoRelated Solutions
Performance Report Year Ended December 31, 2017 Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances...
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Year Ended December 31, 2017
Actual
Flexible-Budget
Flexible
Sales-Volume
Static
Results
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Budget
Variances
Budget
Units sold
108,000
99,000
Revenues (sales)
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$420,750
Variable costs
430,000
237,600
Contribution margin
272,000
183,150
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105,000
Operating income
$78,150
$78,150
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$30,000
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