Question
Question For Managerial accounting class: All the information is below A is a retail company that sells shoes. Data concerning the companys monthly revenues and
Question For Managerial accounting class: All the information is below
- A is a retail company that sells shoes. Data concerning the companys monthly revenues and costs appear below (Q refers to the number of pairs of shoes sold):
| Formula | |
| Revenue | $70 Q |
| Expenses: | |
| Cost of merchandises | $30 Q |
| Wages and salaries | $130,000 |
| Utilities | $12,000 + $2Q |
| Miscellaneous | $5000 + $3 Q |
1. Prepare the companys planning budget assuming that 30,000 pairs of shoes are expected to be sold. (1pt)
2. Assume that 25,000 pairs of shoes were actually sold. Prepare a flexible budget for this level of activity. (1pt)
3. The actual results appear below. Prepare a performance report for the company.(1pt)
| Revenue | $1,800,000 |
| Purchases | $760,000 |
| Wages and salaries | $135,000 |
| Utilities | $65,000 |
| Miscellaneous | $87,000 |
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