{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T11:11:54-04:00", "answer_date": "2024-05-25 11:11:54", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1684396", "url": "\/study-help\/questions\/the-outrageous-balloon-company-produces-party-balloons-that-are-sold-1684396", "question_creation_date_js": "2024-05-25T11:11:54-04:00", "question_creation_date": "May 25, 2024 11:11 AM", "meta_title": "[Solved] The Outrageous Balloon Company produces p | SolutionInn", "meta_description": "Answer of - The Outrageous Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's p | SolutionInn", "meta_keywords": "outrageous,balloon,company,produces,party,balloons,sold,multi-pack,cases,s,performance,report", "question_title_h1": " The Outrageous Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's performance report in contribution margin format 18", "question_title": " The Outrageous Balloon Company produces party balloons that are sold in", "question_title_for_js_snippet": "The Outrageous Balloon Company produces party balloons that are sold in multi pack cases Following is the company's performance report in contribution margin format 18 December (Click the icon to view the performance report in contribution margin format ) Read the requirements Data table Requirement 1 What is the budgeted sales price per unit $ 3 30 The budgeted sales price per unit is Requirement 2 What is the budgeted variable expense per unit The budgeted variable expense per unit is $ 1 90 Requirement 3 What is the budgeted fixed cost for the period The budgeted fixed cost for the period is $ 70,000 4 Actual Master Budget Budget Variance 5 Sales volume (number of cases sold) 55,000 52,000 6 Sales revenue $ 193,600 $ 171,600 7 Less Variable expenses 110,800 98,800 8 Contribution margin $ 82,800 $ 72,800 71,200 70,000 11,600 $ 2,800 9 Less Fixed expenses 10 Operating Income Print Done Requirements 4 and 5 Compute the master budget variances Be sure to in budget variance that is (a) due to volume being different than originally anticip these questions, using the actual sales volume of 55,000 units and the budge fixed costs, assuming the relevant range stretches from 47,000 to 60,000 unit Begin by completing the actual and master budget columns of the performand columns (Round all amounts to the nearest whole dollar Label each variance voor amavoraca toy me vanance is maner srer ton considered favorable ) h of the master ress nit, and ing variance The Outrageous Balloon Company Flexible Budget Performance Report (Click the icon to view the performance report in contribution margin format ) Read the requirements Data table 4 Master Budget Actual Budget Variance 55,000 52,000 $ 193,600 $ 171,600 110,800 98,800 master $ 82,800 $ 72,800 71,200 70,000 $ 11,600 $ 2,800 Fance The budgeted fixed cost for the period is $ 70,000 Requirements 4 and 5 Compute the master budget variances Be sure to indicate budget variance that is (a) due to volume being different than originally anticipated, a these questions, using the actual sales volume of 55,000 units and the budgeted sal fixed costs, assuming the relevant range stretches from 47,000 to 60,000 units Begin by completing the actual and master budget columns of the performance repo columns (Round all amounts to the nearest whole dollar Label each variance as fa considered favorable ) The Outrageous Balloon Company Flexible Budget Performance Report For the Month Ended December 31 5 Sales volume (number of cases sold) 6 Sales revenue 7 Less Variable expenses 8 Contribution margin 9 Less Fixed expenses 10 Operating income Print Done Sales volume Sales revenue Less Variable expenses Contribution margin Less Fixed expenses Operating income Flexible Budget Flexible Actual Variance Budget Volume Variance Master Budget Budget Variance F F U F U Balloon Company produces party balloons that are sold in multi pac Requirements Data table 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 55,000 units and the budgeted sales volume of 52,000 units Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 47,000 to 60,000 units 6 Using the flexible budget performance report you prepared for Requirement 5, answer the following questions a How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected b How much of the master budget variance for variable expenses is due to some cause other than volume C d What is the volume variance for fixed expenses Why is it this amount What could account for the flexible budget variance for sales revenue ", "question_description": "\"image\"image\"image", "transcribed_text": "The Outrageous Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's performance report in contribution margin format 18 December (Click the icon to view the performance report in contribution margin format.) Read the requirements Data table Requirement 1. What is the budgeted sales price per unit? $ 3.30 The budgeted sales price per unit is Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.90 Requirement 3. What is the budgeted fixed cost for the period? The budgeted fixed cost for the period is $ 70,000 4 Actual Master Budget Budget Variance 5 Sales volume (number of cases sold) 55,000 52,000 6 Sales revenue $ 193,600 $ 171,600 7 Less: Variable expenses 110,800 98,800 8 Contribution margin $ 82,800 $ 72,800 71,200 70,000 11,600 $ 2,800 9 Less: Fixed expenses 10 Operating Income Print Done Requirements 4 and 5. Compute the master budget variances. Be sure to in budget variance that is (a) due to volume being different than originally anticip these questions, using the actual sales volume of 55,000 units and the budge fixed costs, assuming the relevant range stretches from 47,000 to 60,000 unit Begin by completing the actual and master budget columns of the performand columns (Round all amounts to the nearest whole dollar Label each variance voor amavoraca toy me vanance is maner srer ton considered favorable.) h of the master ress nit, and ing variance The Outrageous Balloon Company Flexible Budget Performance Report (Click the icon to view the performance report in contribution margin format.) Read the requirements Data table 4 Master Budget Actual Budget Variance 55,000 52,000 $ 193,600 $ 171,600 110,800 98,800 master $ 82,800 $ 72,800 71,200 70,000 $ 11,600 $ 2,800 Fance The budgeted fixed cost for the period is $ 70,000 Requirements 4 and 5. Compute the master budget variances. Be sure to indicate budget variance that is (a) due to volume being different than originally anticipated, a these questions, using the actual sales volume of 55,000 units and the budgeted sal fixed costs, assuming the relevant range stretches from 47,000 to 60,000 units. Begin by completing the actual and master budget columns of the performance repo columns. (Round all amounts to the nearest whole dollar. Label each variance as fa considered favorable.) The Outrageous Balloon Company Flexible Budget Performance Report For the Month Ended December 31 5 Sales volume (number of cases sold) 6 Sales revenue 7 Less: Variable expenses 8 Contribution margin 9 Less: Fixed expenses 10 Operating income Print Done Sales volume Sales revenue Less Variable expenses Contribution margin Less: Fixed expenses Operating income Flexible Budget Flexible Actual Variance Budget Volume Variance Master Budget Budget Variance F F U F U Balloon Company produces party balloons that are sold in multi-pac Requirements Data table 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 55,000 units and the budgeted sales volume of 52,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 47,000 to 60,000 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: a. How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? b. How much of the master budget variance for variable expenses is due to some cause other than volume? C. d. What is the volume variance for fixed expenses? Why is it this amount? What could account for the flexible budget variance for sales revenue?", "related_book": { "title": "Fundamental accounting principle", "isbn": "1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587", "edition": "21st edition", "authors": "John J. Wild, Ken W. Shaw, Barbara Chiappetta", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/267.jpg", "uri": "\/textbooks\/fundamental-accounting-principle-21st-edition-267", "see_more_uri": "" }, "free_related_book": { "isbn": "1539161560", "uri": "\/textbooks\/software-licence-compliance-survive-the-audits-1st-edition-9781539161561", "name": "Software Licence Compliance Survive The Audits", "edition": "1st Edition" }, "question_posted": "2024-05-25 11:11:54", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-21", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/statistics-for-business-and-economics\/in-the-game-of-roulette-a-gambler-who-wins-the-1277843", "description": "In the game of roulette, a gambler who wins the bet receives $36 for every dollar she or he bet. A gambler who does not win receives nothing. If the gambler bets $1, what is the expected value of the...", "stars": 3 }, { "url": "\/public-libraries-are-not-run-for-profit-but-they-must", "description": "Public libraries are not run for profit, but they must know their customers. A Pew Research survey in November 2012 found that 426 of 584 surveyed parents of young children had current library cards....", "stars": 3 }, { "url": "\/study-help\/entrepreneurship-\/when-conducting-a-homework-exercise-for-another-class-especially-a-1317523", "description": "When conducting a homework exercise for another class (especially a case analysis), ask yourself comprehension questions, connection questions, strategy questions, and reflection questions. What...", "stars": 3 }, { "url": "\/study-help\/introduction-to-probability-statistics\/274-university-professors-consider-a-population-consisting-of-the-number-1981024", "description": "2.74 University Professors Consider a population consisting of the number of professors per university at small universities. Suppose that the number of professors per university has an average = 175...", "stars": 3 }, { "url": "\/colt-company-owns-a-machine-that-can-produce-two-specialized", "description": "Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machines capacity is 2,750...", "stars": 3 }, { "url": "\/study-help\/questions\/your-factory-has-been-offered-a-contract-to-produce-a-9810368", "description": "Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $5.14 million per year. Your upfront...", "stars": 3 }, { "url": "\/study-help\/questions\/gavin-mills-has-an-existing-facility-that-it-paid-29000000-518711", "description": "Gavin Mills has an existing facility that it paid 29,000,000 for 10 years ago. It has 3 choices for this facility now: a. sell it outright for 9.5M today, b. lease it for the next 4 years to a...", "stars": 3 }, { "url": "\/study-help\/questions\/brennan-and-associates-a-law-firm-accrued-6-2517858", "description": "Brennan and Associates, a law firm, accrued $ 6 , 8 0 0 ?for four days of wages on December 3 1 . ?On January 7 , ?it paid two weeks of wages, totaling: $ 1 7 , 0 0 0 , ?to employees. The company's...", "stars": 3 }, { "url": "\/study-help\/questions\/an-analysis-of-the-transactions-made-by-blossom-co-1952050", "description": "An analysis of the transactions made by Blossom & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $550 for rent, $3,800 for salaries and wages, and...", "stars": 3 }, { "url": "\/study-help\/questions\/a-company-plans-to-configure-a-vessels-journey-in-dynamics-3486811", "description": "A company plans to configure a vessel's journey in Dynamics 365 Supply Chain Management by using the landed cost functionality. The company needs to track the details of each step of the journey...", "stars": 3 }, { "url": "\/study-help\/questions\/10-which-of-the-following-is-not-a-disadvantage-of-5134149", "description": "10 Which of the following is NOT a disadvantage of virtual integration in supply chains? 1 point Often variations in the IT capabilities and existing level of infrastructure across supply chain...", "stars": 3 }, { "url": "\/study-help\/questions\/i-need-complete-answer-please-activity-3-prepare-me-below-5392836", "description": "ACTIVITY 3: PREPARE ME Below are the Income Statement and Balance Sheet of Hobert Supply and Services. Using these data, prepare the company's Statement of Changes in Equity. Herbert Supply and...", "stars": 3 }, { "url": "\/study-help\/questions\/a-data-professional-works-on-a-financial-audit-during-the-5697597", "description": "A data professional works on a financial audit. During the verification process, they keep in mind the big picture view of confirming that the company's financial statements comply with accounting...", "stars": 3 }, { "url": "\/study-help\/questions\/required-information-the-following-information-applies-to-the-8468347", "description": "! Required information [ The following information applies to the questions displayed below. ] In 2 0 2 3 , Susan ( 4 4 years old ) is a highly successful architect and is covered by an employee -...", "stars": 3 }, { "url": "\/study-help\/modern-mathematical-statistics-with-applications\/the-test-statistic-in-the-neymanpearson-lemma-and-the-likelihood-1105008", "description": "The test statistic in the NeymanPearson Lemma and the likelihood ratio test statistic K are intimately related. Consider testing H 0 : = 0 versus H a : = a , and let * denote the test statistic...", "stars": 3 }, { "url": "\/study-help\/essentials-of-marketing-analytics\/3-in-spite-of-the-advantages-of-foreign-trade-zones-1703388", "description": "3 In spite of the advantages of foreign trade zones, most companies have failed to use them effectively. What are the reasons? Can anything be done to stimulate the interest?", "stars": 3 }, { "url": "\/study-help\/essentials-of-marketing-analytics\/5-each-year-foreign-companies-generate-some-10-billion-in-1703390", "description": "5 Each year, foreign companies generate some $10 billion in capital and 300,000 new jobs for the US economy. As may be expected, US politicians, states, and local governments have competed...", "stars": 3 }, { "url": "\/study-help\/essentials-of-marketing-analytics\/1-since-exporting-is-a-relatively-riskfree-market-entry-strategy-1703386", "description": "1 Since exporting is a relatively risk-free market entry strategy, is there a need for a company to consider other market entry strategies?", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/the-company-developed-standard-costs-for-direct-material-and-direct-1684395", "next": "\/study-help\/questions\/the-following-information-relates-to-production-activities-of-mercer-manufacturing-1684397" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": " The Outrageous Balloon Company produces party balloons that are sold in", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/the-outrageous-balloon-company-produces-party-balloons-that-are-sold-1684396" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } "1" } }