S10-11 (similar to) Question Help Albert Manufacturing makes a variety of products, including lawn mowers. Albert's Lawn Mower Division can use a component, K32, manufactured by Albert's Electrical Division. The market price for K32 is $21 per unit. The variable cost per unit for K32 in the Electrical Division is $9, while the absorption cost per unit is $12. The divisions at Albert use a negotiated price strategy to set transfer prices between divisions. The Electrical Division has excess capacity. What is the lowest acceptable transfer price to the Electrical Division? What is the highest acceptable transfer price that the Lawn Mower Division would pay? Explain your answer. is the lowest acceptable transfer price to the Electrical Division $12, the difference between the variable cost and market price, $9, the variable cost, $12, the absorption cost $21, the market price, The following is a partially completed performance report for Surf Time Click the icon to view the information) Read the requirements 1. How many pools did Surf Time originally think they would install in April? The that Surf Time planned to sell pools in April Requirements 1. How many pools did Surf Time Originally think it would install in April? 2. How many pools did Surf Time actually install in April? 3. How many pools is the flexible budget based on? Why? 4. What was the budgeted sales price per pool? 5. What was the budgeted variable cost per pool? 6. Define the flexible budget variance. What causes it? 7. Define the volume variance. What causes it? 8. Fill in the missing numbers in the performance report Print Done 1 Data Table E F A Master Budget 4 1 Surf Time 2 Flexible Budget Performance Report: Sales and Operating Expenses 3 For the Year Ended April 30 Flexible Budget Flexible Volume Actual Variance Budget Variance 5 5 Sales volume (number of pools installed) ? 2 2 $ 110,000 ? Sales revenue $ 110,000 2 7 Operating expenses B Variable expenses $ 54,000 2 $ 50,000 2 Fixed expenses 9 20,000 ? 23,700 2 2 2 ? 2 10 Total operating expenses $ 92,800 $ 46,400 23.700 2 The Lasting Balloon Company produces party balloons that are sold in multi-pack cases. To follow is the company's performance report in contribution margin format for October Click the icon to view the performance report in contribution margin format.) Read the requirements Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is Requirements 1. What is the budgeted sales price per unit? 2. What is the budgeted variable expense per unit? 3. What is the budgeted fixed cost for the period? 4. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management would like to determine the portion of the master budget variance that is (a) due to volume being different than originally anticipated and (b) due to some other unexpected cause. Prepare a flexible budget performance report to address these questions, using the actual sales volume of 58,000 units and the budgeted sales volume of 56,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 51,000 to 68,000 units 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: How much of the master budget variance calculated in Requirement 4) for operating income is due to volume being higher than expected? How much of the master budget variance for variable expenses is due to some cause other than volume? What could account for the flexible budget variance for sales revenue? What is the volume variance for foxed expenses? Why is it this amount? a. b. d. Print Done The Lasting Balloon Company produces party balloons that are sold in multi-pack cases. To follow is the company's performance report in contribution margin format for October (click the icon to view the performance report in contribution margin format) Read the requirements Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is Data Table B D 1 2 The Lasting Balloon Company Actual vs. Budget Performance Report For the Month Ended October 31 3 Master Budget Variance Master 4 Actual Budget 5 Sales volume (number of cases sold) 58,000 56,000 6 Sales revenue $ 176,200 $ 151,200 7 Loss: Variable expenses 85,300 72,800 8 Contribution margin $ 90.900 $ 78,400 9 Less: Fixed expenses 74,800 73,000 $ 10 Operating Income 16,100 $ 5.400 Print Done