As sales manager, Hank Short was given the following static budget report for selling expenses in...
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As sales manager, Hank Short was given the following static budget report for selling expenses in the Winter Sports Department of Jennings Outdoor Company for the month of November. Jennings Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2020 Sales in units Variable expenses Sales commissions Advertising expense Travel expense Demonstration models given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation - vans (sales staff) Total fixed Total expenses Budget Actual 4,100 4,600 $123,000 $130,700 36,900 39,700 188,600 206,200 110,700 102,700 459,200 479,300 7,100 7,100 59,800 59,800 40,100 40,100 3,000* 2,500 109,500 110,000 $568,700 $589,300 Difference Favorable F Unfavorable U 500 F $7,700 U 2,800 U 17,600 U 8,000 F 20,100 U -0- -0- -0- 500 U 500 U $20,600 U *The increase in depreciation was due to a new vehicle that had to be purchased as a result of an accident driving on snowy roads on the way to visit a customer. As a result of this budget report, Hank was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Hank knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. Prepare a budget report based on flexible budget data to help Hank. (Round per unit answers to 2 decimal places, e.g. 15.25.J Jennings Outdoor Company Winter Sports Department Flexible Budget Report 4 # : : $ $ Per Unit $ $ Budget $ S Actual $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable O + : + : m As sales manager, Hank Short was given the following static budget report for selling expenses in the Winter Sports Department of Jennings Outdoor Company for the month of November. Jennings Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2020 Sales in units Variable expenses Sales commissions Advertising expense Travel expense Demonstration models given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation - vans (sales staff) Total fixed Total expenses Budget Actual 4,100 4,600 $123,000 $130,700 36,900 39,700 188,600 206,200 110,700 102,700 459,200 479,300 7,100 7,100 59,800 59,800 40,100 40,100 3,000* 2,500 109,500 110,000 $568,700 $589,300 Difference Favorable F Unfavorable U 500 F $7,700 U 2,800 U 17,600 U 8,000 F 20,100 U -0- -0- -0- 500 U 500 U $20,600 U *The increase in depreciation was due to a new vehicle that had to be purchased as a result of an accident driving on snowy roads on the way to visit a customer. As a result of this budget report, Hank was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Hank knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. Prepare a budget report based on flexible budget data to help Hank. (Round per unit answers to 2 decimal places, e.g. 15.25.J Jennings Outdoor Company Winter Sports Department Flexible Budget Report 4 # : : $ $ Per Unit $ $ Budget $ S Actual $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable O + : + : m
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flexible budget report for Hank Expense Budget Per Unit Actual Difference Favorable Unfavorable Sales commissions 12300000 3024 13070000 770000 U Adve... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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