CH 9 LEARN SMART MANAGERIAL ACCOUNTING

1. $28,800 revenue. $24 per unit x 1,200= $28,800 2. $7,500 for supplies. $6,250/1,000= $6.25 per unit x 1,200= $7,500

the planning budget calls for total variable costs for supplies to be $6,250 based on 1,000 units with planned revenue at $24,000. A total of 1,200 units were actually produced and sold. What amounts should appear on the flexible budget?

1. The activity variance is $25,000 Favorable. The activity variance is the difference between the planning budget and the flexible budget 2. The revenue variance is $2,000 Unfavorable. The revenue variance is the difference between the flexible budget and actual results

A performance report shows that the planned revenue was $200,000, the flexible budget revenue was $225,000, and actual revenue was $223,000. Which of the following statements are true?

Sales of $44,000. Sales= $20 per manicure ($40,000/2,000) x 2,200= $44,000. Net Operating Income of $19,500. $44,000 - $22,000 - $2,500= $19,500.

Fancy Nail's monthly rent is $2,500. The company's static budget for March was based on the activity level of 2,000 manicures. Total sales was budgeted at $40,000 and nail technician wages (a variable costs based on the number of manicures) was budgeted at $20,000. Actual manicures in March totaled 2,200. Assuming no other expenses, Fancy Nails' flexible budget will show:

$1,275. Electrical cost = $40 per day x 24 days + 0.15 per client x 2,100 clients= $1,275

Fancy Nails cost formula for electricity is $40 per operating day plus $0.15 per client served. Calculate Fancy Nails' electricity budget in a month when the business is going to be open for 24 days and they expect to serve a total of 2,100 clients.

1. $1,300 in total costs. 4,000 units x $0.20 + $500= $1,300 2. $4,700 net income. $6,000 - (4,000 x $0.20) - $500= $4,700 net income

if the activity level for the month is 4,000 units, actual revenue is $6,000, actual variable costs are $0.20 unit, and actual fixed costs total $500, which of the following are true?

$108,000. $120,000/5,000= $24 per unit x 4,500= $108,000

if the planned budget revenue for 5,000 units is $120,000, what is the flexible budget revenue if the actual activity is 4,500 units?