The following cost formulas were used to construct the planning budget:Medical supplies.Lab testsEquipment depreciationRentUtilitiesAdministrationCost FormulasLiters of blood collectedMedical suppliesLab testsEquipment depreciationRequired:1.Complete the flexible budget performance report for September.RentUtilitiesAdministrationTotal expense$3,600$1,550$775$10,550 + $3.009Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.$17.00q$12.009ActualResults$Saint Lucia Blood BankFlexible Budget Performance ReportFor the Month Ended September 30FlexibleBudget620$ 10,3506,2353,9551,55086712,59535,552PlanningBudget$$5008,5006,0003,6001,55077512,05032,475 The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of Saint Lucia.The blood bank has just finished its operations for September, which was a very busy month due to a powerful hurricane that hitneighboring islands causing many injuries. The hurricane largely bypassed Saint Lucia, but residents of Saint Lucia willingly donatedtheir blood to help people on other islands. As a consequence, the blood bank collected and processed over 20% more blood thanhad been originally planned for the month.A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears below. Continuedsupport from the government depends on the blood bank's ability to demonstrate control over its costs.Saint Lucia Blood BankCost Control Report.For the Month Ended September 30Liters of blood collectedMedical suppliesLab testsEquipment depreciationRentUtilitiesAdministrationTotal expenseActualResults620$ 10,3506,2353,9551,55086712,595$ 35,552PlanningBudget500$ 8,5006,0003,6001,55077512,050$ 32,475Variances$1,850 U235 U355 U092 U545 U$ 3,077 UThe managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due tothe emergency on the neighboring islands. He also pointed out that the additional costs had been fully covered by payments fromgrateful recipients on the other islands. The government official who prepared the report countered that all of the figures had beensubmitted by the blood bank to the government; he was just pointing out that actual costs were a lot higher than promised in thebudget.

Flexible budget is prepared for the actual production which makes performance evaluation easier…

The following cost formulas were used to construct the planning budget: Cost Formulas $17.00g $12.009 $3,600 $1,550 $775 $10,550 + $3.00q Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Required: 1.Complete the flexible budget performance report for September. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense Actual Results Saint Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget 620 $ 10,350 6,235 $ 3,955 1,550 867 12,595 35,552 Planning Budget 500 8,500 6,000 3,600 1,550 775 12,050 $ 32,475 $

The following cost formulas were used to construct the planning budget: Cost Formulas $17.00g $12.009 $3,600 $1,550 $775 $10,550 + $3.00q Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Required: 1.Complete the flexible budget performance report for September. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense Actual Results Saint Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget 620 $ 10,350 6,235 $ 3,955 1,550 867 12,595 35,552 Planning Budget 500 8,500 6,000 3,600 1,550 775 12,050 $ 32,475 $

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 1E: Budget performance reports for cost centers Partially completed budget performance reports for...

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Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense Cost Control Report For the Month Ended September 30 Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense Actual Results The following cost formulas were used to construct the planning budget: Cost Formulas 610 $ 7,203 5, 081 The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergency on the neighboring islands. He also pointed out that the additional costs had been fully covered by payments from grateful recipients on the other islands. The government official who prepared the report countered that all of the figures had been submitted by the blood bank to the government; he was just pointing out that actual costs were a lot higher than…
Given the following information, determine the activity rate for setups. Budgeted Activity Activity Setups Inspections Assembly (dlh) Oa. $5.65 Ob. $6.37 Oc. $5.78 Od. $5.74 Total Activity-Base Usage 10,000 25,400 70,700 Cost $63,700 $143,500 $406,100
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Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 4,400 meals at an average price of $15. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service costs (variable with respect to meals) Variable service costs (with respect to meals) Food costs $11,000 16,500 6,400 9,300 $43,200 Labor Other variable costs Fixed service costs Total service costs Marketing and administrative costs Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative costs 6,000 5,000 $11,000 Total costs $54,200 Required: Prepare a budgeted income statement for June. (Do not…
Given the following information, determine the activity rate (rounded to the nearest cent) for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 11,000 $58,100 Inspections 25,200 $147,200 Assembly (dlh) 72,000 $375,700 a. $5.22 O b. $5.28 c. $5.84 O d. $5.37
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Panther Corporation appeared to be experiencing a good year. Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout the entire year. The controller asked Janet Nomura, a summer accounting intern, to prepare a draft forecast for the year and to analyze the differences from last year's results. She based the forecast on actual results obtained in the first quarter plus the expected costs of production to be completed in the remainder of the year. She worked with various department heads (production, sales, and so on) to get the necessary information. The results of these efforts follow: PANTHER CORPORATION Expected Account Balances for December 31, Year 2 Cash 6,500 Accounts receivable 337,000 Inventory (January 1, Year 2) Plant and equipment Accumulated depreciation Accounts payable Notes payable (due within one year) Accrued payables 240,000 605,000 $ 181,000 197,000 217,000 110,000 Common stock 450,000…
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Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted production of 4,500 units with the following amounts: At the end of the year, Balboa had the following actual costs for production of 4,700 units: Required: 1. Calculate the budgeted amounts for each cost category listed above for the 4,500 budgeted units. 2. Prepare a performance report using a budget based on expected (budgeted) production of 4,500 units. 3. Prepare a performance report using a budget based on the actual level of production of 4,700 units.
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