Flexible budget income statement for actual level of sales

Assignment Help Financial Accounting

Reference no: EM131260150

Anniston Co. planned to produce and sell 40,000 units. At that volume level, variable costs are determined to be $320,000 and fixed costs are $30,000. The planned selling price is $10 per unit. Anniston actually produced and sold 42,000 units.

Using a contribution margin format for each of the two items below. Use the template below for all of these type of problems. You must show how you calculated each number for credit.

(a) Prepare a fixed budget income statement for the planned level of sales and production (Hint: Based on 40,000 units sold). (3 points)

Sales $

Variable costs $

Contribution margin $

Fixed costs $

Operating income $

(b) Prepare a flexible budget income statement for the actual level of sales and production (Hint: Based on 42,000 units sold). (3 points)

Sales $

Variable costs $

Contribution margin $

Fixed costs $

Operating income $

Reference no: EM131260150

Questions Cloud

Aboiut the transaction analysis-various concepts : Transaction. Center collects $2,000,000 in cash from outstanding accounts receivable. Analysis. Center collects cash, thus cash will go up by 2,000,000. Accounts receivable balance will go down because receivables in the amount of 2,000,000 have been..

Magneficent modems has excess productuction capacity : latemir company expects to make 7200 travel sewing kits in 2015. In january the company made 1800 kits. material and labor cost for january eas 7200 and 9000 respectively. Magneficent modems has excess productuction capacity and is considering the po..

Financial services through two seperate operating divisions : Sydney Mira provides two financial services through two seperate operating divisions (O1 and O2). There two operating divisions require the services of three internal service departments (S1, S2, S3). Using the direct allocation method, calculate the..

Unamortized balance in discount on bonds payable account : On June 30, 2016, Kerr Industries had outstanding $40 million of 8%, convertible bonds that mature on June 30, 2017. Interest is payable each year on June 30 and December 31. The bonds are convertible into 2 million shares of $10 par common stock. At..

Flexible budget income statement for actual level of sales : Anniston Co. planned to produce and sell 40,000 units. At that volume level, variable costs are determined to be $320,000 and fixed costs are $30,000. The planned selling price is $10 per unit. Anniston actually produced and sold 42,000 units. Prepar..

Use a contribution margin format : A company's flexible budget for 60,000 units of production showed sales of $96,000, variable costs of $36,000, and fixed costs of $26,000. What operating income would be expected if the company produces and sells 70,000 units? Use a contribution marg..

Ceramtics manufactures high-speed ceramic switch : Ceramtics manufactures a high-speed ceramic switch used in the telecommunications industry. Data about Ceramtics’s operations for 2017 and 2018 are presented below: Prepare income statements for 2017 and 2018 using absorption costing. Prepare income ..

Contribution format income statement for internal planning : Alden Company has decided to use a contribution format income statement for internal planning purposes. The company has analyzed its expenses and has developed the following cost formulas: Cost Cost Formula Cost of goods sold $32 per unit sold Advert..

Contribution margin-variable costs contribution margin : Which of the following equations is true? Contribution margin ratio = Contribution margin/Variable costs Contribution margin = Fixed costs Contribution margin = Sales revenue x Variable cost ratio Contribution margin ratio = 1- Variable cost ratio. W..

User Account

All Pages