As part of the budgeting process, Wickham Company developed the master budget for June. The manager,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
As part of the budgeting process, Wickham Company developed the master budget for June. The manager, Alex, is in the process of preparing the flexible budget and understanding the actual results for June. Static Budget Flexible Budget Actual Results For June For June For June Sales volume (in units) 25,000 20,000 Sales volume $1,250,000 $- $1,000,000 Sales volume 600,000 512.000 Contribution margin 650,000 488,000 Capacity-related (fixed) costs 450,000 458,000 Operating profit $ 200,000 $30,000 The primary reason for low operating profits in June was: Select one: O a. increased capacity-related (fixed) costs. b. the flexible budget variance for flexible (variable) costs. C.a poor management accounting system. o d. lower sales volume than planned. As part of the budgeting process, Wickham Company developed the master budget for June. The manager, Alex, is in the process of preparing the flexible budget and understanding the actual results for June. Static Budget Flexible Budget Actual Results For June For June For June Sales volume (in units) 25,000 20,000 Sales volume $1,250,000 $- $1,000,000 Sales volume 600,000 512.000 Contribution margin 650,000 488,000 Capacity-related (fixed) costs 450,000 458,000 Operating profit $ 200,000 $30,000 The primary reason for low operating profits in June was: Select one: O a. increased capacity-related (fixed) costs. b. the flexible budget variance for flexible (variable) costs. C.a poor management accounting system. o d. lower sales volume than planned.
Expert Answer:
Answer rating: 100% (QA)
Answer Correct Answer Option B The flexible Budget ... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
Students also viewed these accounting questions
-
Operating costs are forecast as part of the budget process. Effective management requires identification of variances from those budgeted costs as quickly as possible so that corrective action can be...
-
As part of the year-end audit, you are discussing the disclosure checklist with your client. The checklist identifies the items that must be disclosed in a set of IFRS financial statements. The...
-
As part of the mayors advisory team, you are to develop a balanced scorecard for Hogwart City, which has a population of 65,000. The citys strategic themes are planning and community development,...
-
Suppose a CAP policy was adopted that set allowances for a fixed number of miles driven by each car owner per year. Describe a plan for implementation and trading options.
-
How is the audit risk model used to plan the audit?
-
The preliminary 2013 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2013 ($ in millions, except earnings per...
-
The following information is taken from the annual report of The Claremont Corporation: The company uses the LIFO method to value its inventory. In addition, the footnotes to the companys annual...
-
1. As much as possible, assess the extent to which PetroChinas accounting principles conform to IASB standards. 2. How reliable is your assessment? 3. What further information would help your...
-
Which of these would most likely be considered an upper respiratory infection ( URI ) ? bronchitis bronchiolitis pharyngitis laryngitis
-
The following unadjusted trial balance is for the year ended 30 June 2019: BILLY GOAT LTD Unadjusted Trial Balance as at 30 June 2019 Debit Credit Bank overdraft Vehicle rental expenses Cash at bank...
-
At what nominal rate of interest compounded quarterly will $ 13 000.00 earn \$8407.27 in interest in six years? (nearest hundredth)
-
Davis Manufacturing Corporation applies manufacturing overhead on the basis of 150% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year...
-
In this assignment, identify scholarly articles and their parts. Read the article. Review the tips and instructions on conducting an article analysis in the Article Analysis Instructions section of...
-
Who started this game of tic-tac-toe: player X or player O? Explain. Assume that both players are experienced at playing tic-tac-toe. X O X 0
-
Outline an analysis on corporate-level strategies for Starbucks and create a partial SWOT table for Starbucks and discuss the strategic inferences/implications.
-
Outline three areas where ethics and ethical behaviour are of importance to business . Discuss the role of the accounting profession in the issue of ethics . solve How might a company develop a code...
-
Would you kindly help me with the above exercise to be implemented in PYTHON? Thank you very much!. 2. (5 pts) Handwritten digits dataset loading and preprocessing: (1) Load the digits data by
-
Give codons for the following amino acids: (a) Th (b) Asp (c) Thr
-
Why would ratios that include one balance sheet account and one income statement account, such as receivables turnover or return on assets, be questionable if they came from quarterly or other...
-
Quester Company operates a large discount store and uses the retail method to estimate the cost of ending inventory . Management suspects that in recent weeks there have been unusually heavy losses...
-
In what ways does having merchandise inventory impact faithful representation and classification?
-
The Manhattan Company has \($265\) million in assets, \($90\) million in current liabilities, \($135\) million in noncurrent liabilities, and \($40\) million in shareholders equity. Of the companys...
-
Presented below are common-sized income statement data for three well-known companies representing three different industries (pharmaceutical, beverage, and diversified): 1. Bristol-Myers Squibb 2....
-
Presented below are selected financial data for two competitors. Discuss why the return on assets increased for Company A but decreased for Company B. Company A. Company B Return on Assets Return on...
Study smarter with the SolutionInn App