q1 accounting
Chrome File Edit View History Bookmarks People Tab Window Help & Arabic ))) 87% Tue 3 Nov 12:11 AM Q AutoSave OFF ch06 Excel Templates - assignment.xIs - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments C6 X fx C D E F G H J K M NO P Q R S T U V Course 5 Date 6 Barnes Entertainment Corporation prepared a master budget for the month of November that was based on sales of 200,000 board games. The 00 budgeted income statement for the period is as follows. 9 Revenue $2,400,000 iVariable expenses Direct materials $750,000 Direct labor 250,000 Variable overhead 520,000 Total variable expenses 1,520,000 Contribution margin 880,000 Fixed overhead 220,000 Fixed selling and administrative expenses 435,000 Total fixed expenses 655,000 19 Operating income $225,000 20 21 During November, Barnes produced and sold 190,000 board games. Actual results for the month are as follows. 22 23 Revenue $2,185,000 24 Variable expenses 25 Direct materials $698,000 26 Direct labor 215,000 27 Variable overhead 479,000 28 iTotal variable expenses 1,392,000 29 Contribution margin 793,000 30 Fixed overhead 210,000 31 Fixed selling and administrative expenses 446,000 32 Total fixed expenses 656,000 33 Operating income $ 137,000 34 35 36 equired Problem 6-27 Problem 6-31 + Select destination and press ENTER or choose Paste Average: 753300 Count: 44 Sum: 15066000 + 100% NOV 3 stv 4 P W XExcel File Edit View Insert Format Tools Data Window Help & Arabic ())) 87% Tue 3 Nov 12:12 AM Q E OO AutoSave . OFF ch06 Excel Templates - assignment.xIs - Compatibility Mode Home Insert Draw Page La C6 X V fx Share Comments B C D E F G H M 36 Required U V W X 37 38 a. Prepare a flexible budget for November. 39 40 Unit ....games 41 Revenue $ 42 Less variable costs 43 Direct material Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Overhead Selling and administrative Total fixed costs Operating income b. Calculate Barnes' static budget variance for November. Solve: Actual Results Static Budget Variance Static Budget Unit Sales 190,000 Revenue 2,185,000 $ 200,000 2,400,000 Less variable expenses Direct materia 698,000 750,000 Direct Labor 215,000 250,000 Overhead 479,000 520,000 Total variable expense ,392,000 1,520,000 Contribution margin 793,000 880,000 Less fixed expenses Overhead 210,000 220,000 Selling and administrative 446,000 435,000 Total fixed expenses 656,000 655,000 Operating income 137,000 225,000 72 73 Will the static budget vo ment? Why or why not ? Problem 6-27 Problem 6-31 Select destination and press ENTER or choose Paste Average: 753300 Count: 44 Sum: 15066000 - + 90% NOV 3 tv P W XExcel File Edit View Insert Format Tools Data Window Help 7;? .Arabic 1)))87%-r Tue3Nov 12:12AM Q Q} i. AutoSave . ii 6 E (3 v ; 5] ch06 Excel Templates - assignment.x|s - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View is Share Q Comments c, Vlnll the static budget variance that you calculated in part (b) be useful to management? Why or why not? Answer: , Based on the available information, prepare a performance report for management. Solve: Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Unit Sales 190,000 200,000 Revenue 5 2,185,000 $ 2,400,000 Less variable expenses: Direct material 698,000 750,000 Direct Labor 215,000 250,000 Overhead 479,000 520,000 Total variable expense 1,392,000 1,520,000 Contribution margin 793,000 880,000 Less xed expenses Overhead 210,000 220,000 Selling and administrative 446,000 435,000 Total xed expenses 656,000 655,000 Operating income 137,000 225,000 , Comment on the results of your report Answer: Problem 7 Select destination and press ENTER or choose Paste Average 753300 Count 44 Sum: 15066000 in ; aiaomoa
