The Greensboro Performing Arts Center (GPAC) has a total capacity of 8,800 seats: 2,400 center seats, 2,900side seats, and 3,500 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are asfollows: Ticket Price Percentage Occupied Budgeted Seats Actual Seats Center $ 80 80% 85% Side 70 70 75Balcony 60 75 65 The actual ticket prices were the same as those budgeted. Once a show has been booked, thetotal cost does not vary with the total attendance. Required: Compute the following for the show: 1. Thebudgeted and actual sales mix percentages for different types of seats. 2. The budgeted average contributionmargin per seat. Assume the ticket price is also the contribution margin. 3-a. The total sales mix variance. 3-b.The total sales quantity variance. 4. The total sales volume variance.

The objective of the question is to calculate the budgeted and actual sales mix percentages for…

Answered: The Greensboro Performing Arts Center…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Greensboro Performing Arts Center (GPAC) has a total capacity of 8,500 seats: 2,300 center seats, 2,800 side seats, and 3,400 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows: Ticket Price Percentage Occupied Budgeted Seats Actual Seats Center $ 80 80% 85% Side 70 70 75 Balcony 60 75 65 The actual ticket prices were the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance. Required: Compute the following for the show (each different seat section): 1. The budgeted and actual sales mix percentages for different types of seats. 2. The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin. 3-a. The total sales mix variance. 3-b. The total sales quantity variance. 4. The total sales volume variance.
The Rock of Aegis presents a series of concerts throughout the year. Budgeted fixed costs total $300,000 for the concert season; variable costs are expected to average $5 per patron. The orchestra uses flexible budgeting.What is the Total costs at 9,500 patrons?
Peter Rabbit, which had a six-week run with three performances on each weekend. The costs from the current year's planning budget appear below. The Little Theatre Costs from the Planning Budget For the Year Ended December 31 Budgeted number of productions 6 Budgeted number of performances 108 Actors and directors wages $224,640 Stagehands wages 41, 040 Ticket booth personnel and ushers wages 24,840 Scenery, costumes, and props 108,480 Theater hall rent 62, 640 Printed programs 35, 640 Publicity 12, 480 Administrative expenses 44, 280 Total $ 554, 040 Some of the costs vary with the number of productions, some with the number of performances, and some are fixed and depend on neither the number of productions nor the number of performances. The costs of scenery, costumes, props, and publicity vary with the number of productions. It doesn't make any difference how many times Peter Rabbit is performed, the cost of the scenery is the same. Likewise, the cost of publicizing a play with…
Answer BOTH QUESTIONS. A niteclub chain in Lusaka, owns three niteclubs in the towns of Kitwe, Ndola and Kabwe. It has prepared budgets for the coming year based on a ticket price of K40. KITWE NDOLA KABWE TOTAL K’000 K’000 K’000 K’000 Budgeted ticket receipts 16,000 12,000 8,000 36,000 Costs: Music Hire 5,000 4,000 3,900 12,900 Wages and Salaries 3,000 2,500 1,600 7,100 Overheads 5,000 4,000 3,500 12,900 Total Costs…
A local engineering firm is bidding on a design project for a new client. The total budgeted direct-labor costs for the firm are $600,000. The total budgeted indirect costs are $800,000. It is estimated that there are 10,000 billable hours in total. a. What is the budgeted direct-labor cost rate? b. What is the budgeted indirect-cost rate assuming direct-labor cost is the allocation base? c. What should be the engineering firm bid on the project if the direct labor hours are estimated at 300 hours?
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $70? 2$ b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 11,500 units, how many units should be produced? units c. What dollar amount of materials should be purchased at $6 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively.
Shalom Company measures its activity in terms of court reservations. Last month, the budgeted level of activity was 480 player-visits, and the actual level of activity was 440 player-visits. The company budgets for variable overhead costs of P3.30 per player-visit and fixed overhead costs of P10,600 per month. The actual variable overhead cost last month was P3,830 and the actual fixed overhead cost was P8,780. In your flexible budget performance report, identify the difference between budgeted and actual costs and indicate as favorable or unfavorable. Total variable overhead costs (not 2246UF) Total manufacturing costs (not 426UF)
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $35? b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 8,000 units, how many units should be produced?Answer units c. What dollar amount of materials should be purchased at $2.50 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively. d. How much direct labor cost should be incurred if each unit produced requires 0.5 hours at an hourly rate of $16? e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $45,000 and variable manufacturing…
Baskin Promotions, Incorporated sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts: Sales Cost of Goods Sold Gross Profit Operating Expenses ($100,000 is fixed) Operating Income Income Taxes (30% of operating income) Net Income $ 1,400,000 820,000 580,000 418,400 161,600 48,480 $ 113, 120 Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. If the concert season is slow due to poor weather, Baskin estimates that sales could fall to as low as 60,000 T-shirts. What unit cost did Baskin use in budgeting the cost of goods sold for the year?
Baskin Promotions, Incorporated sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts: Sales Cost of Goods Sold Gross Profit Operating Expenses ($100,000 is fixed) Operating Income Income Taxes (30% of operating income) Net Income $ 1,400,000 820,000 580,000 418,400 161,600 48,480 $ 113, 120 Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. If the concert season is slow due to poor weather, Baskin estimates that sales could fall to as low as 60,000 T-shirts. Assume Baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. A performance report would indicate that net income was:
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement. a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $65? 9750000 b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 11,000 units, how many units should be produced? 155000 c. What dollar amount of materials should be purchased at $5.50 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively. 2139500 How much direct labor cost should be incurred if each unit produced requires 0.5 hours at an hourly rate of $22? How much manufacturing overhead should be incurred if fixed manufacturing overhead is $45,000 and variable…
Bear Creek Golf Center reported actual operating income for the current year as $66,000. The flexible budget operating income for actual volume is $56,000, while the static budget operating income is $61,000. What is the flexible budget variance for operating income? A. $5,000 favorable B. $5,000 unfavorable C. $10,000 unfavorable D. $10,000 favorable

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS