Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 9,000, 10,500, and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 9,000, 10,500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,500 units during July. Its flexible budget and actual operating income was as follows: Click the icon to view the flexible budget) Click the icon to view the income statement) Read the requirements NetTech Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 (3) - (5) Sales Flexible Budget Amounts Per Unit Volume Static Actual Results Budget Variance Flexible Budget Variance Budget Units Sales Revenue Variable Expenses Carbon Margin Choose from any list or enter any number in the input fields and then continue to the next question Data Table - X s July 2013 sold 12,500 NetTech Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 23 $ 13 241,500 $ 136,500 Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income 207,000 $ 1 17,000 90.000 53,000 37,000 $ 105,000 53.000 52.000 $ 287,500 162,500 125,000 53.000 72.000 NetTech Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 294,500 Variable Expenses 167,600 Contribution Margin 126,900 Fixed Expenses 54,000 72.900 Operating Income Static Budget nit Print Done NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 201 output levels of 9,000, 10,500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,50 budget and actual operating income was as follows: (Click the icon to view the flexible budget.) Click the icon to view the income statement.) Read the requirements Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income HetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shov output levels of 9,000, 10,500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,500 units during July. Its budget and actual operating income was as follows: Read the requirements Selling 2,000 units more than the static budget level of sales NetTech's operating income by 5 L Requirement 3. What is NetTech's static budget variance for operating income? meaning that its operating income is than expected NetTech's static budget variance is s per the static budget Requirement 4. Explain why the flexible budget performance report provides more useful information to NetTech's managers than the simple static budget variance What insights can NetTech's managers draw from this performance report? Choose two reasons why the flexible budget performance report provides NetTech's managers with more information than the simple static budget variance These variances suggest that the marketing department did a job. They sold units than expected and sold them at a price than expected henneth

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Craft Of Auditing For Accounting Undergraduates

Authors: Eldar Maksymov

1st Edition

1516589890, 9781516589890

More Books

Students also viewed these Accounting questions