particular market. The actual results were 78,260 units sold by Appoline, which represented a 26 percent share of the total market. The budgeted contribution margin is $11.00 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity variance Market share variance Industry volume variance
Q: Can I have the Journal Entry for the above questions?
A: Journal entries - It is the act of keeping or recording the financial and non-financial transactions…
Q: Which title is not appropriate for a balance sheet? a. As of December 31, 20XX b. For the Year Ended…
A: A balance sheet, presents the financial position of a company at a specific point in time. The…
Q: During the current year, Cullumber Corporation expects to produce 10,000 units and has budgeted the…
A: ROI stands for return on investment. It is the ratio between net income and invested assets. It is…
Q: Sampson Merchandising Firm is developing its budgets for Year 2. The Year 1 income statement is as…
A: A BUDGETED INCOME STATEMENT IS A FINANCIAL REPORT THAT SHOWS THE ESTIMATED REVENUE,, 99, 254);…
Q: Fetzer Company declared a $0.30 per share cash dividend. The company has 180,000 shares authorized,…
A: Treasury stock represents shares of a company's stock that it has bought back from the shareholders.…
Q: Mini, Inc., ears pretax book net income of $1,420,000 in 2021, its first year of operations. Mini…
A: The deferred tax arises when there is an item on the balance sheet that resulted in the advance…
Q: The following information is available for Oriole Company Accounts receivable Accounts payable…
A: Balance sheet is one of the financial statement being prepared in business. It shows all assets,…
Q: Pharoah Company sells office equipment on July 31, 2022, for $23,270 cash. The office equipment…
A: The journal entries are prepared to record the transactions on regular basis. The depreciation…
Q: Nautical manufactures flotation vests in Tampa, Florida. Nautical's contribution margin income…
A: Differential analysis refers to the process of comparing and contrasting the differences between two…
Q: Required Information [The following information applies to the questions displayed below.] Preble…
A: Variable costs are costs that vary with the change in the level of output.Factory overhead is the…
Q: Reza contributes to his employer-sponsored 401(k) plan. Which of the following statements is TRUE?…
A: It is the retirement savings plan offered by the employers to help employees save and invest for…
Q: Calculate Payroll Breakin Away Company has three employees-a consultant, a computer programmer, and…
A: Gross Pay:It is the total earning of the employee that includes both regular and overtime…
Q: Manufacturing equipment was acquired for $10545. The book value of this equipment after 4 years of…
A: Depreciation expense :— It is the allocation of depreciable cost of an asset over the estimated…
Q: Kentford Associates is a small professional services firm. Last month, Kentford billed more hours…
A: Activity variances are those which are determined to show the differences between the values of…
Q: Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment…
A: Ratios provide a detailed evaluation of a company's financial performance over time or a specific…
Q: Discuss the purpose of the conceptual framework and what it intends to achieve.
A: The conceptual framework serves as a fundamental reference that establishes the underlying…
Q: A company reports the following: Sales $1,069,000 Average total assets 534,500 Determine the asset…
A: · Ratio analysis used identify the business performance of the company.· It is used to…
Q: On January 1, Bonneau Corp purchased 90,000 shares of Crossley, Inc stock for $50 each. Crossley has…
A: The investment is reported as the assets in the business. The dividend share decreases the…
Q: Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is…
A: The exchange rate is the value of the two nations' currencies. When exchanging currencies between…
Q: Our new computer system cost us $164,800. We will outgrow it in five years. When we sell it, we will…
A: A computer is considered an asset for a business since it adds economic value to the company's…
Q: Problem 12-6A (Algo) Part 2 2. Calculate the following profitability ratios for 2024 and 2025:…
A: The current ratio is calculated as current assets divided by the current liabilities of the current…
Q: Patty, Inc purchases equipment for $52670. The equipment will be depreciated over 8 years with no…
A: Depreciation expense:— It is the allocation of depreciable cost of an asset over the estimated…
Q: How to calculate convertible debt
A: Convertible debt is a term used to describe a sort of financial instrument that may be converted…
Q: To record the cash payment of $10,000 against a loan owing to the bank. Please select the correct…
A: In accounting, a journal entry is the documentation of a monetary transaction or other occurrence.…
Q: Activity Expected Cost Setting up equipment Ordering materials $132,000 27,600 141,050 Machining…
A: Manufacturing overhead: It is the expense incurred as a result of the production process. These…
Q: Required information [The following information applies to the questions displayed below.] Woolard…
A: The difference between an individual's or entity's income and any statutory tax deductions is called…
Q: On April 15, 2021, fire damaged the office and warehouse of Larkspur Corporation. The only…
A: Inventory is the value of goods remains in the godown of an organization at the at of a period.…
Q: NINE Company reported a pre-tax financial income of $8,584,950 for the year ended December 31, 2021.…
A: The portion of an individual's or company's total income that is subject to taxation by a…
Q: A manufacturer reports the information below for three recent years. Year 1 $ 116,000 Variable…
A: The net income using variable costing and absorption costing are different due to fixed costs…
Q: Problem 1: On December 31, 2020, Sirius Corp issued 600 million shares of common stock and 10…
A: EPS is referred to as Earnings Per Share. EPS can be classified into two types,:Basic EPSDiluted EPS…
Q: The NBV Company allocates both variable manufacturing overhead and fixed manufacturing overhead…
A: VARIABLE OH SPENDING VARIANCEExpenditure or Budget or Price Variance: This variance is due to the…
Q: MGMT 8500: $23-capstone -V30 Appendix One (Construct or lease) Objective: Should FFT lease or…
A: NPV stands for net present value which is the difference between the Present value of total cash…
Q: Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material.…
A: Income statement :— It is one of the financial statements that shows the profitability, total…
Q: Campbell Company Incurred manufacturing overhead cost for the year as follows. Direct materials…
A: The income statement is prepared using different methods as variable costing and absorption costing.…
Q: The shareholders' equity of CCC Corp. on Dec. 31, 2023 shows the following balances: 7% Preference…
A: Ordinary shares, often referred to as common shares or common stock, signify ownership in a business…
Q: The Walt Disney Company (DIS) had the following assets and liabilities (in millions) at the end of…
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…
Q: Futura Company purchases the 68,000 starters that it installs in its standard line of farm tractors…
A: A make-or-buy decision is a useful business decision-making process for an organization, which is…
Q: What role does internal control play in ensuring accurate revenue recognition and preventing fraud?
A: Internal control is the collective term for the methodical actions taken by a company to protect its…
Q: The following cost behavior patterns describe anticipated manufacturing costs for 2022: raw…
A: Absorption costing and Variable costing are two costing systems being used in business. Under…
Q: Question 9: On 1 January 20X6 Fellini hired a machine under a finance lease. The cash price of the…
A: The non-current liabilities is the liability upon the company which is required to be paid by the…
Q: Acme Brick Company uses the following rule to determine whether materials usage variances should be…
A: The determination of variances assists the organization, such as Management, in making…
Q: Exercise 9-1 (Algo) Compare financing alternatives (LO9-1) Rustic Campsites, Incorporated, is trying…
A: Income statement :— It is one of the financial statements that shows the profitability, total…
Q: Crane Clothiers is a small company that manufactures tall-men's suits. The company has used a…
A: Standard costing is the cost the company expects would be incurred for direct materials, direct…
Q: Seacoast Company provided the following information about its standard costing system for 2019:…
A: Introduction:-Standard costs are estimates of the actual costs in a company’s production…
Q: Required: Indicate the effect of the following on the company's accounting equation. Indicate each…
A: Lease is a contract which gives the lessee, a right to use of the lessor's asset, for a fixed period…
Q: 1st Q Gross Income 600,000 per Quarter Deductions per 280,000 Quarter W/tax at source 2,000 per…
A: It is the amount of tax a taxpayer is liable to pay on the taxable income earned. The tax liability…
Q: Altira Corporation provides the following information related to its inventory during the month of…
A: Under periodic inventory valuation system the inventory account is updated at the end of an…
Q: The Learning Journal is a space where you should reflect upon what was learned during the week, how…
A: Effective planning is a crucial component for any company looking to start or expand its business…
Q: Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: On January 1, a company issued 4%, 20-year bonds with a face amount of $75 million for $45,310,905…
A: Interest expenses refer to the costs incurred by an entity for borrowing funds from external…
Dog
Step by step
Solved in 3 steps
- Budgeted unit sales for the entire countertop oven industry were 2,500,000 (of all model types), and actual unit sales for the industry were 2,550,000. Recall from Cornerstone Exercise 18.6 that Iliff, Inc., provided the following information: Required: 1. Calculate the market share variance (take percentages out to four significant digits). 2. Calculate the market size variance. 3. What if Iliff actually sold a total of 41,000 units (in total of the two models)? How would that affect the market share variance? The market size variance?Static budget versus flexible budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-July have been significantly less than the monthly static budget of2,358,000. However, the plant manager believes that the budget should not remain fixed for every month but should flex or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: a. Prepare a flexible budget for the actual units produced for May, June, and July in the MachiningDepartment. Assume depreciation is a fixed cost. b. Compare the flexible budget with the actual expenditures for the first three months.What does this comparison suggest?Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: a. Finished goods inventory on January 1 is 32,000 units, each costing 166.06. The desired ending inventory for each month is 80% of the next months sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next months production needs. This is exactly the amount of material on hand on December 31 of the prior year. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is 14.25. d. Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.) e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.) f. The unit selling price of the subassembly is 205. g. All sales and purchases are for cash. The cash balance on January 1 equals 400,000. The firm requires a minimum ending balance of 50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement j. Cash budget 2. CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master budgeting process. Ask when the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate budget. Is the budgetary process participative? Also, find out how budgets are used for performance analysis. Write a summary of the interview.
- D&B Ice Cream budgeted sales of 153,612 units of flavor C, assuming that the company would have 18 percent of 853,400 units sold in a particular market. The actual results were 136,275 units, based on a 15 percent share of a total market of 908,500 units. The budgeted contribution margin is $4.30 per unit. Required: Compute the sales activity varlance, and break it down into market share variance and the Industry volume variance. (Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar.) Sales activity variance Market share variance Industry volume varianceExercise 17-26 (Algo) Industry Volume and Market Share Variances (LO 17-3) Appoline Juices budgeted sales of 88,140 units of Grape, assuming that the company would have 30 percent of 293,800 units sold in a particular market. The actual results were 80,470 units sold by Appoline, which represented a 26 percent share of the total market. The budgeted contribution margin is $11.00 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance, Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity variance Market share variance Industry volume varianceD&B Ice Cream budgeted sales of 136,288 units of flavor C, assuming that the company would have 16 percent of 851,800 units sold in a particular market. The actual results were 126,630 units, based on a 14 percent share of a total market of 904,500 units. The budgeted contribution margin is $5.10 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar.)
- Appoline Juices budgeted sales of 87,000 units of Grape, assuming that the company would have 30 percent of 290,000 units sold in a particular market. The actual results were 78,000 units sold by Appoline, which represented a 26 percent share of the total market. The budgeted contribution margin is $11 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity variance Market share variance Industry volume varianceRequired information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Brodrick Company expects to produce 21,200 units for the year ending December 31. A flexible budget for 21,200 units of production reflects sales of $466,400; variable costs of $63,600; and fixed costs of $142,000. QS 23-4 Flexible budget performance report LO P1 Assume that actual sales for the year are $551,800 (26,900 units), actual variable costs for the year are $113,900, and actual fixed costs for the year are $135,000. Prepare a flexible budget performance report for the year. BRODRICK COMPANY Flexible Budget Performance Report For Year Ended December 31 Favorable/ Unfavorable Flexible Budget Actual Results Variances Contribution margin 2$ 0 $Exercise 17-26 (Static) Industry Volume and Market Share Variances (LO 17-3) Appoline Juices budgeted sales of 87,000 units of Grape, assuming that the company would have 30 percent of 290,000 units sold in a particular market. The actual results were 78,000 units sold by Appoline, which represented a 26 percent share of the total market. The budgeted contribution margin is $11 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity vanance Market share variance Industry volume variance,
- Market Share Variance, Market Size Variance Katie’s Coffee Makers Inc. projected budgeted unit sales for the entire specialized coffee maker industry to be 2,500,000 (of all model types), and actual unit sales for the industry were 2,550,000. Budgeted Actual Sales in units, French Press 25,000 25,800 Sales in units, AeroPress 15,000 14,000 Total contribution margin $3,250,000 Budgeted average unit contribution margin $81.25 1. Calculate the market share variance (take percentages out to four significant digits. Use the rounded percentages for subsequent requirements.) 2. Calculate the market size variance.Exercise 17-27 (Algo) Industry Volume and Market Share Variances (LO 17-3) Logan Passport Services budgeted sales of 8,300 units of its Basic Visa Service (BVS). This was based on its estimated 5 percent share of this service in the relevant regional market. Actual sales of the BVS for Logan totaled 11,350 units on total industry volume of 146,000 unit for this service. The budgeted contribution margin for BVS is $88 per unit. The actual contribution margin for BVS was $95. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity variance Market share variance Industry volume varianceExercise 17-26 (Algo) Sales Mix and Quantity Variances (LO 17-4) A-Zone Media sells two models of e-readers, The budgeted price per unit for the wireless model is $200 and the budgeted price per unit for the wireless and cellular model is $432. The master budget called for sales of 10,800 wireless models and 2,900 wireless and cellular models during the current year, Actual results showed sales of 8,300 wireless mnodels, with a price of $240 per unit, and 4,500 wireless and cellular models, with a price of $560 per unit. The standard variable cost per unit is $88 for a wireless model and $200 for a wireless and cellular model. Requlred: a. Compute the activity variance for these data. b. Compute the mix and quantity varlance for these data. (Enter your answers rounded to the nearest whole dollar.) Complete this question by entering your answers In the tabs below. Required A Required B Compute the activity variance for these data. (Do not round Intermediate calculations. Indicate the…