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Fed [463]
3 years ago
7

Folsom Fashions sells a line of women's dresses. Folsom's performance report for November Year 1 follows.Actual : Dresses Sold:

5000, Sales 235,000, variable cost is 145,000 contribution margin is 90,000, fix cost is 84,000 and operating income is 6,000Budget: Dresses Sold: 6000, Sales 300,000, variable costs: 180000, contribution margin is 120,000, fixed costs is 80000, and operating income is 40,000The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.The variable cost flexible budget variance for November is:(A) $4,000 unfavorable.(B) $5,000 favorable.(C) $5,000 unfavorable.(D) $4,000 favorable.
Business
1 answer:
ElenaW [278]3 years ago
4 0

Answer:

(B) $5,000 favorable.

Explanation:

Variable cost flexible budget variance:

budget for 6,000 units total variable cost: $180,000

We divide the total cost by the activity in that budget:

$180,000/ 6,000 = 30

Now we multiply by the actual volume:

5,000 x 30 = 150,000

Now we do flexible budget - actual cost = variance

150,000 - 145,000 = 5,000 favorable

It is favorable, as the cost where less than expected.

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December 31 2017 2016 Accounts receivable $43,060 $34,630 Inventory 30,370 39,870 Prepaid rent 16,820 15,120 Totals $90,250 $89,
morpeh [17]

Answer:

Net cash from operating activities is $57,220.

Explanation:

Using the indirect method, the Operating Activities section of the statement of cash flows can be prepared as follows:

Statement of Cash Flows

(Operating Activities Section Only)

<u>Details                                                                                          $         </u>

Net income                                                                            35,890

Adjustment to reconcile net income:

Depreciation expense                                                           18,040

(Increase) decrease in current assets:

Increase in accounts receivable ($34,630 - $43,060)        (8,430)

Decrease in inventory ($39,870 - $30,370)                          9,500

Increase in prepaid rent ($15,120 - $16,820)                        (1,700)

Increase (decrease) in current liabilities:

Increase in accounts payable ($25,610 - $19,430)                6,180

Decrease in income taxes payable ($5,970 - $10,500)      (4,530)

Increase in interest payable ($14,710 - $12,440)               <u>     2,270  </u>

Net cash from operating activities                                  <u>    57,220  </u>

5 0
2 years ago
Anthony Roofing's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $30,000 Variable ma
liberstina [14]

Answer:

Total budgeted manufacturing cost = $824,000

Explanation:

The total budgeted manufacturing cost is the sum of the variable  and fixed manufacturing cost

The fixed manufacturing cost of $30,000 would be absorbed (i.e charged to the units produced using overhead absorption rate (OAR).

OAR = Budgeted fixed manufacturing cost / Budgeted production squares

      = $30,000 /  50,000 squares = $0.6 per square

Absorbed fixed manufacturing cost= OAR × actual production of squares

Absorbed fixed manufacturing cost=  $0.6 × 40,000 = $24,000

Variable manufacturing cost = $20.00 × 40,000 =800,000

Total budgeted manufacturing cost = $24,000  + $800,000  = $824,000

Total budgeted manufacturing cost = $824,000

5 0
3 years ago
The difference between a budget and a standard is that:_________.
8090 [49]

Answer:

The answer is A. Standards refer to a company's projected revenues, costs, or expenses

Explanation:

The explanation is the following:

A budget refers to a department's or a company's projected revenues, costs, or expenses, while on the other hand A standard usually refers to a projected amount per unit of product, per unit of input (such as direct materials, factory overhead), or per unit of output.

Standard costing is intensive in appli­cation as it calls for detailed analysis of variances.

In standard costing, variances are usu­ally revealed through accounts.

Standard costs represent realistic yardsticks and are, therefore, more useful for controlling and reducing costs.

8 0
3 years ago
Read 2 more answers
Which of the following would NOT affect your FICO score?
Elodia [21]
D) Which is Defaulting on a loan!
8 0
2 years ago
11. What are assets?
vampirchik [111]
Financial accounting, an asset is any resource owned by a business or an economic entity. It is anything that can be owned or controlled to produce value and that is held by an economic entity and that could produce positive economic value.
I hope this helps
7 0
3 years ago
Read 2 more answers
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