Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,000 tires at a variable cost of $73 per tire and total fixed costsof $57,000. The budgeted selling price was $111 per tire. Actual results in August 2020 were 2,700 tires manufactured and sold at a selling price of $113 per tire. The actual total variable costs were$218,700, and the actual total fixed costs were $53,500.Read the requirementsRequirement 1. Prepare a performance report with a flexible budget and a static budgetBegin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a 10 balance, make sureto enter "0" in the appropriate field. If the variance is zero, do not select a label)Units soldRevenuesVariable costsContribution marginFixed costsOperating incomeActualResults atreroRequirements1. Prepare a performance report with a flexible budget and a static budget.2. Comment on the results in requirement 1.PrintDone-Xfavorable o

Flexible budget is a adjusted budget which is prepared end of a accounting period based on actual…

Answered: 1. Prepare a performance report with a…

Business

Accounting

1. Prepare a performance report with a flexible budget and a static budget. 2. Comment on the results in requirement 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kluver Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,700 tires at a variable cost of $76 per tire and total fixed costs of $54,500. The budgeted selling price was $113 per tire. Actual results in August 2020 were 3,500 tires manufactured and sold at a selling price of $117 per tire. The actual total variable costs were $290,500, and the actual total fixed costs were $52,000. Read the requirements. Requirement 1. Prepare a performance report with a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Actual Results Requirements 1. Prepare a performance report…
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Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. For August 2017 it budgeted to manufacture and sell 3,600 tires at a variable cost of $71 per tire and total fixed costs of $55,000. The budgeted selling price was $114 per tire. Actual results in August 2017 weere 3,500 tires manufactured and sold at a selling price of $116 per tire. The actual total variable costs were $280,000, and the actual total fixed costs were $51,000. Prepare a performance report that uses flexible budget and a static budget. Determine if the result are favorable or unfavorable. Comment on the results
Bowshar Hills Company sells shoes and expects to produce and sell 50,000 units during the year 2022 with no beginning or ending inventories as it plans to produce what it can sell during the same year. The total budgeted fixed manufacturing overhead cost for the year is $50,000. The company accounts show that the budgeted direct material cost is $4 per unit, budgeted direct labor cost is $6 per direct labor hour, and budgeted variable manufacturing overhead is $2 per direct labor hour. Each unit produced takes 2 hours of skilled labor time. The cost of goods sold reported in the budgeted income statement for 2022 is: O a. $650,000 O b. None of the given answers O c. $1,050,000 O d. $850,000 O e. $450,000 here to search 11:41 A - A dx ENG 22-05-2021 144 prt s delete end home + backspace num lack V. E 8 A home D K enter 5 0 pause レ B ↑ shift 2 end alt ctri ins
Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. The company's budgeted and actual amounts are as follows: Budgeted for August 2017 Units to manufacture and sell 3,600 Variable cost per tire $71 Total fixed costs $55,000 Budgeted selling price per tire $114 Actual Results for August 2017 Units manufactured and sold 3,500 Selling price per tire $116 Total variable costs $280,000 Total fixed costs $51,000 Requirement Prepare a performance report that uses a flexible budget and a static budget. a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. b. Use the ABS function when…
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