Ch 8 EFILE - Chapter 8 Flexible Budgets and Performance...

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Unformatted text preview: Chapter 8 Flexible Budgets and Performance Analysis Exercise 8-8 (15 minutes) Lavage Rapide Planning Budget For the Month Ended August 31 Budgeted cars washed (q).............................. 9,000 Revenue ($4.90q)........................................... $44,10 Expenses: Cleaning supplies ($0.80q)........................... 7,200 Electricity ($1,200 + $0.15q)......................... 2,550 Maintenance ($0.20q).................................. 1,800 Wages and salaries ($5,000 + $0.30q)........ 7,700 Depreciation ($6,000)................................... 6,000 Rent ($8,000)............................................... 8,000 Administrative expenses ($4,000 + $0.10q). 4,900 Total expense.................................................. 38,150 Net operating income...................................... $ 5,950 Exercise 8-9 (15 minutes) Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed (q).................................... 8,800 Revenue ($4.90q)........................................... $43,12 Expenses: Cleaning supplies ($0.80q)........................... 7,040 Electricity ($1,200 + $0.15q)......................... 2,520 Maintenance ($0.20q).................................. 1,760 Wages and salaries ($5,000 + $0.30q)........ 7,640 Depreciation ($6,000)................................... 6,000 Rent ($8,000)............................................... 8,000 Administrative expenses ($4,000 + $0.10q). 4,880 Total expense.................................................. 37,840 Net operating income...................................... $ 5,280 8-2 Exercise 8-13 (10 minutes) Wyckam Manufacturing Inc. Planning Budget for Manufacturing Costs For the Month Ended June 30 Budgeted machine-hours (q)........ 5,000 Direct materials ($4.25q).............. $21,250 Direct labor ($36,800)................... 36,800 Supplies ($0.30q)......................... 1,500 Utilities ($1,400 + $0.05q)............. 1,650 Depreciation ($16,700)................. 16,700 Insurance ($12,700)..................... 12,700 Total manufacturing cost.............. $90,600 8-4 Exercise 8-15 (20 minutes) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Flexible Budget Actual Results Revenue and Spending Variances Liters (q)....................................... 6,200 6,200 Revenue ($12.00q)....................... $74,400 $71,540 $2,860 U Expenses: Raw materials ($4.65q).............. 28,830 29,230 400 U Wages ($5,600 + $1.40q).......... 14,280 13,860 420 F Utilities ($1,630 + $0.20q).......... 2,870 3,270 400 U Rent ($2,600)............................. 2,600 2,600 Insurance ($1,350)..................... 1,350 1,350 Miscellaneous ($650 + $0.35q).. 2,820 2,590 230...
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This note was uploaded on 02/02/2011 for the course ACCT 226 taught by Professor Smith during the Fall '10 term at South Carolina.

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Ch 8 EFILE - Chapter 8 Flexible Budgets and Performance...

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