This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Kevin Jarvis is the controller of Bitterroot Industries. Kevin prepared the following budgeted ... (Read 69 times)

Aimless0988

  • Full Member
  • ***
  • Posts: 158
on: Feb 5, 2023
Kevin Jarvis is the controller of Bitterroot Industries. Kevin prepared the following budgeted income statement at various levels of sales. After careful review of the budgeted income statements, and after discussions with the sales and production managers, the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units.

Budgeted Income Statements
Units20,00030,00040,000
Sales$1,240,000$1,860,000$2,480,000
Variable costs​​​
  Direct material340,000510,000680,000
  Direct labor300,000450,000600,000
  Overhead   360,000   540,000   720,000
Total variable costs1,000,0001,500,0002,000,000
Contribution margin240,000360,000480,000
Fixed costs​​​
  Overhead62,00062,00062,000
  Rent46,00046,00046,000
  Insurance28,00028,00028,000
  Advertising    15,000     15,000     15,000
Total fixed costs  151,000   151,000   151,000
Operating income$     89,000$   209,000$   329,000

Actual results for the year were 28,000 units, reflected in the following income statement:

Sales$1,764,000
Variable costs​
  Direct material504,000
  Direct labor434,000
  Overhead   509,600
Total variable costs1,447,600
Contribution margin316,400
Fixed costs​
  Overhead64,200
  Rent45,800
  Insurance29,100
  Advertising    14,000
Total fixed costs   153,100
Operating income$   163,300
What is the flexible budget variance for variable overhead?
◦ $34,000 unfavorable
◦ $5,600 unfavorable
◦ $30,400 favorable
◦ $5,600 favorable
Managerial Accounting ¦ Davis ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Aimless0988 on Feb 5, 2023

Sha

  • Full Member
  • ***
  • Posts: 179
Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 26% of students answer this correctly


Aimless0988

  • Member
  • Posts: 158
Reply 2 on: Feb 5, 2023
:D TYSM

vickyvicksss

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Volume IV pump/controller. Volume IV pump/controller.
A Subject Prepared for a Night’s Sleep in a Sleep Laboratory A Subject Prepared for a Night’s Sleep in a Sleep Laboratory
A Patient Being Prepared for Electroconvulsive Therapy. A Patient Being Prepared for Electroconvulsive Therapy.
Diego Rivera, Man, Controller of the Universe. Diego Rivera, Man, Controller of the Universe.
a solution is prepared in which a trace or small amount of Fe2+ is added to a much larger ... a solution is prepared in which a trace or small amount of Fe2+ is added to a much larger ...
Four common staining procedures used in chromosomal analysis. Most karyotypes are prepared using G-b Four common staining procedures used in chromosomal analysis. Most karyotypes are prepared using G-b
Video: Phases of the Female Reproductive Cycle - Hormonal regulation

For a complete list of videos, visit our video library