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guajiro [1.7K]
3 years ago
8

The actual information pertains to the third quarter. As part of the budgeting​ process, the Duck Decoy Department of Paralith I

ncorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results. Actual Results Flexible Budget Static Budget Sales volume​ (in units) ​10,000 ​ ________ ​8,000 Sales revenues ​$239,000 ​$ ​$235,000 Variable costs ​167,000 ​$ ________ ​184,000 Contribution margin ​$72,000 ​$ ​$51,000 Fixed costs ​38,000 ​$ ________ ​33,000 Operating profit ​$34,000 ​$ ________ ​$18,000 The flexibleminusbudget variance for variable costs is​ ________. (Round the final answer to the nearest​ dollar.)
Business
1 answer:
Nezavi [6.7K]3 years ago
6 0

Answer:

Paralith Incorporated

Duck Decoy Department

Flexible Budget for Third Quarter:

                                Actual Results      Flexible Budget      Static Budget

Sales volume​ (in units) ​10,000 ​                  10,000                      ​8,000

Sales revenues ​      $239,000 ​               $293,750                  ​$235,000

Variable costs            ​167,000 ​               $ 230,000                  $184,000

Contribution margin ​$72,000                 ​  $63,750                    ​$51,000

Fixed costs                  38,000 ​                  $33,000​                   $33,000

Operating profit ​      $34,000 ​                  $30,750​                     $18,000

Explanation:

a) Calculations for flexible budget:

Sales volume = 8,000/8,000 x 10,000 = 10,000 units

Sales revenue = $235,000/8,000 x 10,000 = $293,750

Variable costs = $184,000/8,000 x 10,000 = $230,000

Fixed Costs will remain at $33,000

b) A flexible budget is a budget that adjusts or flexes with changes according to the volume or activity level.  On the other hand, the static budget amounts do not change from the amounts established at the time that the static budget was prepared and approved.

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Mitchell Corporation bought equipment on January 1, 2017. The equipment cost $300,000 and had an expected salvage value of $50,0
docker41 [41]

Answer:

$250,000

Explanation:

The depreciable cost of the equipment is the amount that will be used to provide for depreciation on the asset also known as Depreciable Amount.

<em>Depreciable Cost = Cost - Salvage Value</em>

therefore,

Depreciable Cost = $300,000 - $50,000 = $250,000

8 0
2 years ago
Lee is considering buying one of two newly-issued bonds. Bond A is a twenty-year, 7.5% coupon bond that is non-callable. Bond B
vova2212 [387]

Answer:

Multiple choices below are missing:

A) purchase Bond A

B) purchase Bond B

C) purchase neither A nor B at this time

D) negotiate a higher rate on Bond A

The correct option is A,purchase bond A.

Explanation:

By purchasing Bond A,Lee is assured interest payment of 7.5% for a period of twenty years,hence the issuer cannot call the bond if interest rate drops by 2% in order to issue a lower interest-bearing bond which would be cheaper cost-wise.

However, if Lee purchases Bond B with current coupon of 8.25%,the interest is only guaranteed for a period of two years,since the issuer has the prerogative of calling back the bond after two years should interest fall in order to issue another bond that commands lower interest rate.

6 0
3 years ago
Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover f
Artyom0805 [142]

Answer:

The correct option is E

Explanation:

The formula to compute the accounts receivable turnover of the company for the Year 2 is as:

Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable

where

Net Credit Sales be $723,000

And

Average Accounts Receivable is computed as:

Average Accounts Receivable = Accounts receivable Year 1 + Accounts receivable Year 2 / 2

= $86,500 + $82,750 / 2

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= $84,625

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5 0
2 years ago
Which one is NOT a competing value:
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Short Term vs Long Term is NOT a competing value.

<h3>Competing value</h3>

Competing value are range of values and priorities that determine and influence a community's culture.

Examples of Competing value are <em>Justice vs Mercy, Truth vs Loyalty, Person vs Society.</em>

Short Term vs Long Term is NOT a competing value.

Find out more on Competing value at: brainly.com/question/24877850

6 0
2 years ago
Type the correct answer in the box. Spell all words correctly.
notka56 [123]

Answer:

Doubtful

Explanation:

The company will record the uncollectible $5,670 of its accounts receivable as a debit to uncollectible accounts expense and a credit to the DOUBTFUL account.

This is evident in the fact that the bad debt allowance method has three main principles which are:

1. Calculate uncollectible receivables

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8 0
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