In order to control costs, Pressed Co. uses budgets. The February 2021 budget report for Sweets...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In order to control costs, Pressed Co. uses budgets. The February 2021 budget report for Sweets firm's Mixing Department is provided below. The expected production of 42,000 units per month or 504,000 units per year were the base for the report monthly budget amounts. The president of Pressed Co. was displeased with the performance of the mixing department manager. Nevertheless, the mixing department manager was not able to understand the unfavorable results and thought he had done a great job. The actual units produced in February were 40,600. Pressed Company Budget Report Mixing Department For the Month Ended February 28, 2021 Difference F Unfavorable U Favorable Manufacturing Cost Variable costs Budget Actual Direct materials SAR 33,600 SAR 32,900 SAR 700 F Direct labor 35,840 16,940 37,800 1,960 F Indirect materials 16,800 140 U Indirect labor 350 F 12,600 10,500 12,250 Utilities 10,430 70 F Maintenance 8,400 119,700 8,680 280 U Total variable 117,040 2,660 F Fixed costs Rent 8,400 8,400 11,900 Supervision Depreciation 11,900 4,200 4,200 Total fixed 24,500 24,500 Total costs SAR144,200 SAR141,540 SAR 2,660 F Instructions: A. Prepare a flexible budget report for Pressed Co. for February. (Show ALL your caleulations). В. 1. Explain why the flexible budget is a better performance evaluation base than the report based on static budget data. 2. Interpret why the president of Pressed Co. was displeased with the performance of the mixing department manager. 3. Advice the manger on how to improve the mixing department performance. In order to control costs, Pressed Co. uses budgets. The February 2021 budget report for Sweets firm's Mixing Department is provided below. The expected production of 42,000 units per month or 504,000 units per year were the base for the report monthly budget amounts. The president of Pressed Co. was displeased with the performance of the mixing department manager. Nevertheless, the mixing department manager was not able to understand the unfavorable results and thought he had done a great job. The actual units produced in February were 40,600. Pressed Company Budget Report Mixing Department For the Month Ended February 28, 2021 Difference F Unfavorable U Favorable Manufacturing Cost Variable costs Budget Actual Direct materials SAR 33,600 SAR 32,900 SAR 700 F Direct labor 35,840 16,940 37,800 1,960 F Indirect materials 16,800 140 U Indirect labor 350 F 12,600 10,500 12,250 Utilities 10,430 70 F Maintenance 8,400 119,700 8,680 280 U Total variable 117,040 2,660 F Fixed costs Rent 8,400 8,400 11,900 Supervision Depreciation 11,900 4,200 4,200 Total fixed 24,500 24,500 Total costs SAR144,200 SAR141,540 SAR 2,660 F Instructions: A. Prepare a flexible budget report for Pressed Co. for February. (Show ALL your caleulations). В. 1. Explain why the flexible budget is a better performance evaluation base than the report based on static budget data. 2. Interpret why the president of Pressed Co. was displeased with the performance of the mixing department manager. 3. Advice the manger on how to improve the mixing department performance.
Expert Answer:
Answer rating: 100% (QA)
Answer and Explanation Sweets Company Flexible Budget Report Mixing Department For the Mont... View the full answer
Posted Date:
Students also viewed these accounting questions
-
In order to control traffic, a network router, A periodically sends a message to its neighbor, B, telling it to increase or decrease the number of packets that it can handle. At some point in time,...
-
In order to control costs, a company wishes to study the amount of money its sales force spends entertaining clients. The following is a random sample of six entertainment expenses (dinner costs for...
-
Over its history, Netflix has done a great job of utilizing the elements of the marketing mix to enhance its success. Describe Netflixs marketing mix what product, pricing, distribution, and...
-
Suppose the following game is repeated once (that is, played twice in total). Bridget SB (10, 74) SA Alex S'A SA SB (70,70) (74, 10) (-10,-10) (40,40) (-10,-10) SB (-10,-10) (-10,-10) (50, 50) (a)...
-
A firm has outstanding a bond with a 5-year maturity and maturity value of $50, convertible into 10 shares. There are also 20 shares outstanding. What is the price of the warrant? The share price?...
-
Write a query to display the customer code, first name, and last name of all customers who have had at least one invoice completed by employee 83649 and at least one invoice completed by employee...
-
What are the characteristics and advantages of the graphical user interface (GUI)?
-
Please discuss the video "Fog of War" and proportionality in war. What was McNamara saying about proportionality during World War II? How do you think this impacted the decision making processes...
-
Antec Corporation had a balance of $2,600 in Prepaid Supplies at the beginning of the year. The company purchased $1,050 of supplies during the year. At year end, Prepaid Supplies had a balance of...
-
Figure 4-34 shows an EER diagram for a restaurant, its tables, and the waiters and waiting staff managers who work at the restaurant. Your assignment is to: a. Develop a relational schema. b. Show...
-
Briefly explain the effect of poles and zeros on the system stability.
-
Which type of graph presents these data more effectively? To answer question, use the following results of the election to the General Assembly from one New Jersey district in 1991. Batten Lookabaugh...
-
Explain the difference between grouped and non grouped data.
-
Use a pie chart to show the distribution of votes. To answer question, use the following results of the election to the General Assembly from one New Jersey district in 1991. Batten Lookabaugh...
-
What is a primary source of data? Give two examples of primary sources of data.
-
Explain how the following can be used to present data. (a) Line chart (b) Component-parts line chart (c) Bar chart
-
Suppose a college junior could earn a salary of $2 million/year by declaring himself eligible for the NFL draft. If he waits until after his senior year he expects his salary to be $2.2 million. In...
-
Havel says the grocer doesnt believe what is on the sign and indeed, he says the grocers customers will barely notice it. But Havel maintains that the sign serves a specific function. How would you...
-
A truck is traveling at a constant \(25 \mathrm{~m} / \mathrm{s}\) when a motorcycle speeds past at a constant \(40 \mathrm{~m} / \mathrm{s}\). On which vehicle, if either, is the magnitude of the...
-
Sketch the \(\sum F_{x}(t)\) curve for the vector sum of forces exerted on the object whose \(x\) component of momentum is plotted in Figure P8.3. Curve sections are numbered for reference. Data from...
-
You wish to move a crate. (a) Is there a minimum value for the magnitude of the pushing force you have to exert to set the crate in motion? (b) Is there a minimum value for the magnitude of the...
Study smarter with the SolutionInn App