Prepare a flexible budget to reflect the expected results for the actual output of 18.000. Provide...

   

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Prepare a flexible budget to reflect the expected results for the actual output of 18.000. Provide a summary of your findings regarding the Company's results for the period. Which of these variances are considered "controllable and which are not? Assuming that the company manufactures ONE PRODUCT, explain the company's SALES performance MISSISSIPPI CORPORATION manufactures ONE PRODUCT. The company prepared a master budget for 2019 which included the following pro-forma income statement, which is based on an expected production and sales volume of 15.000 units. MISSISSIPPI CORPORATION BUDGETED INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2019. Sales Cost of goods sold: Direct materials Direct labor Machinery repairs (variable) Depreciation Plant equipment Utilities ($45,000 is variable) Plant management salaries Cost of goods sold Gross Profit Selling expenses: Packaging (variable) Shipping (variable) Sales salaries (fixed annual amount) General and administrative expenses Advertising expense (fixed) Salaries (fixed) Entertainment expense (fixed) Income from operations $ 3,000,000 975,000 225,000 60,000 300,000 195,000 200,000 $1,955,000 $ 1,045,000 75,000 105,000 250,000 $430,000 125,000 241,000 90,000 $ 456,000 $ 150,000 0 The actual income statement for the year was as follows, based on 18,000 units were actually produced and sold: MISSISSIPPI CORPORATION INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 Sales Cost of goods sold: Direct materials Direct labor Machinery repairs (variable) Depreciation - Plant equipment Utilities ($45,000 is variable) Plant management salaries Cost of goods sold Gross Profit Selling expenses: Packaging (variable) Shipping (variable) Sales salaries (fixed annual amount) General and administrative expenses: Advertising expense (fixed) Salaries (fixed) Entertainment expense (fixed) Income from operations $ 3,648,000 1,185,000 278,000 63,000 300,000 200,500 210,000 $ 2,236,500 $ 1,411,500 87,500 118,500 268,000 $ 474,000 132,000 241,000 93,500 $ 466,500 $ 471,000 Prepare a flexible budget to reflect the expected results for the actual output of 18.000. Provide a summary of your findings regarding the Company's results for the period. Which of these variances are considered "controllable and which are not? Assuming that the company manufactures ONE PRODUCT, explain the company's SALES performance MISSISSIPPI CORPORATION manufactures ONE PRODUCT. The company prepared a master budget for 2019 which included the following pro-forma income statement, which is based on an expected production and sales volume of 15.000 units. MISSISSIPPI CORPORATION BUDGETED INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2019. Sales Cost of goods sold: Direct materials Direct labor Machinery repairs (variable) Depreciation Plant equipment Utilities ($45,000 is variable) Plant management salaries Cost of goods sold Gross Profit Selling expenses: Packaging (variable) Shipping (variable) Sales salaries (fixed annual amount) General and administrative expenses Advertising expense (fixed) Salaries (fixed) Entertainment expense (fixed) Income from operations $ 3,000,000 975,000 225,000 60,000 300,000 195,000 200,000 $1,955,000 $ 1,045,000 75,000 105,000 250,000 $430,000 125,000 241,000 90,000 $ 456,000 $ 150,000 0 The actual income statement for the year was as follows, based on 18,000 units were actually produced and sold: MISSISSIPPI CORPORATION INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 Sales Cost of goods sold: Direct materials Direct labor Machinery repairs (variable) Depreciation - Plant equipment Utilities ($45,000 is variable) Plant management salaries Cost of goods sold Gross Profit Selling expenses: Packaging (variable) Shipping (variable) Sales salaries (fixed annual amount) General and administrative expenses: Advertising expense (fixed) Salaries (fixed) Entertainment expense (fixed) Income from operations $ 3,648,000 1,185,000 278,000 63,000 300,000 200,500 210,000 $ 2,236,500 $ 1,411,500 87,500 118,500 268,000 $ 474,000 132,000 241,000 93,500 $ 466,500 $ 471,000

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Answer Mississippi Corporation PERFORMANCEVARIANCE ANALYSIS REPORT For the Year Ending December 31 2019 Budget Actual Static Budget Variance Variable ... View the full answer