Sinclair and Reid, an accounting firm, has budgeted $200 000 in fixed expenses per month for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sinclair and Reid, an accounting firm, has budgeted $200 000 in fixed expenses per month for the tax department. It has also budgeted variable costs of $10 per tax return prepared for supplies, $70 per return for labour, and $20 per return for computer time. The firm expects revenue from tax return preparation to be $600 000, based on 4000 tax returns at $300 each. During the current month, 3700 tax returns were actually prepared, at an average fee of $294 each. Actual variable costs were $18 200 for supplies, $130000 for labour, and $36000 for computer time. Actual fixed costs were $200 000. REQUIRED Prepare a flexible budget for the tax department of Sinclair and Reid for the current month. 3 LO3 Flexible budget variance Refer to the information in question 2 above. REQUIRED Compute the flexible budget variance for Sinclair and Reid. Sinclair and Reid, an accounting firm, has budgeted $200 000 in fixed expenses per month for the tax department. It has also budgeted variable costs of $10 per tax return prepared for supplies, $70 per return for labour, and $20 per return for computer time. The firm expects revenue from tax return preparation to be $600 000, based on 4000 tax returns at $300 each. During the current month, 3700 tax returns were actually prepared, at an average fee of $294 each. Actual variable costs were $18 200 for supplies, $130000 for labour, and $36000 for computer time. Actual fixed costs were $200 000. REQUIRED Prepare a flexible budget for the tax department of Sinclair and Reid for the current month. 3 LO3 Flexible budget variance Refer to the information in question 2 above. REQUIRED Compute the flexible budget variance for Sinclair and Reid.
Expert Answer:
Answer rating: 100% (QA)
Points from Given Information Budgeted Details Fixed ... View the full answer
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Posted Date:
Students also viewed these accounting questions
-
Prepare a flexible budget performance report title (in proper form) for Spalding Company for the calendar year 2009. Why is a proper title important for this or any report?
-
Prepare a flexible budget for 20,000, 22,000, and 24,000 units of output, using the information that follows. Variable costs: Direct materials .......... $1.00 per unit Direct labor ................
-
Prepare a flexible budget performance report title (in proper form) for Spalding Company for the calendar year 2015. Why is a proper title important for this or any report?
-
In the light of what you know about IHRM, how easy do you think it is to manage a global employer brand? What issues would an IHRM professional expect to have to manage? To answer this, analyse the...
-
Sandberg Company has $1,000,000 in assets and $1,000,000 in stockholders equity, with 40,000 shares outstanding the entire year. It has a return on assets of 10%. In the past year, it had net income...
-
What are the effects of an increase in the population on potential GDP, the quantity of labour, the real wage rate, and potential GDP per hour of labour?
-
Sales of automotive products for Ford Motor Company and General Motors Corporation for a five-year period are: Net sales for Pfizer Inc. and Abbott Laboratories for the same five years follow:...
-
Seattle Cat is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales . ....
-
gathering information for an essay. List details about the duties and responsibilities of correctional staff. What are the criteria for employment? What are some of the primary functions of...
-
As the accountant for Runson Moving Company, you are preparing the companys annual return, Form 940 and Schedule A. Use the following information to complete Form 940 and Schedule A on pages 5-40 to...
-
Question 1 (17 Marks) Mpu Confectionery is a chocolate manufacturing business. For this year, it has experienced a huge decline in sales due to a lifestyle change by many of its customers as they...
-
On Fig. 1 the optical axis and one ray from point A to point B trough a thin lens are depicted. By geometrical raytracing find: 1) type of the lens (convex or concave), 2) position of the principle...
-
CUMICUMI Computer Sdn Bhd is a subsidiary of CUMICUMI Computer Ltd. Its management and control are exercised in Malaysia. The company has the following income for the year ended 31 December 2020:...
-
Write a java program to find out GCD (Greate Common Divisor) of two numbers?
-
1. Explain hydrohalogenation, and hydration reactions with examples. 2. Give IUPAC name of each compound. a. b. 3. Explain Hybroboration-oxidation reaction of alkynes. 4. Discuss reaction of...
-
Font Paragraph Which three categories are contaminants classified, and what are the names, explanations, and examples for each category?
-
Case 3: RILEY AND v. STONE GATE Court of Appeals of Washington, Division 2 FACTS: Larry Riley formed a rental agreement for a self-storage unit with Iron Gate Self Storage in December 2003. The...
-
Match each of the key terms with the definition that best fits it. _______________ A record of the sequence of data entries and the date of those entries. Here are the key terms from the chapter. The...
-
Refer to E6.23. What is the expected ending balance of accounts payable?
-
Giovinazzo Construction Company plans to buy a new dump truck that has a sticker price of $ 68,800. The dealer has offered to finance the truck on an installment note at 5 percent interest for 48...
-
Barden Company needs to borrow $ 500,000. It agrees to make monthly payments of principal and interest over the next 12 years. The bank agrees to loan Barden the money at 6 percent interest....
-
Place the letter of the appropriate accounting cost in Column 2 in the blank next to each decision category in Column 1. Column 1 Analyzing executive performance Determining whether to produce...
-
A manager once asked, How would you calculate the cost of a checking account? What will be your first question to the manager?
-
Ford Motor Company incurs many types of costs in its operations. Required For each cost in the following table, identify the stage in the value chain where this cost is incurred. Cost Transportation...
Study smarter with the SolutionInn App