Make a flexible budgeted income statement

Assignment Help Financial Accounting
Reference no: EM1311443

Budgeted Income Statement  ( static ) and Flexible Budgeted Income Statement Variable Costing , Variance Analysis.

Downes Consolidated Industries International uses a standard cost system and records standards in the accounting records. The standard costs for one of its products are as follows.

Direct materials, 3 lbs. @ $20 per lb. 


Direct labor, 2 hrs. @ $15 per hr.


Variable overhead, 4 machine hrs. @ $1 per hr.


Fixed overhead, 4 machine hrs. @ $2.50 per hr.




Overhead is applied on the basis of machine hours. The planned level of activity (denominator level) is 320,000 machine hours. The total budgeted fixed overhead is $800,000.

Other budgeted items are:
Units selling price, $175.00 per unit
Variable selling & administrative expenses, $5 per unit.
Fixed selling & administrative expenses, $160,000.
Planned level of production and sales, 80,000.

Direct materials purchased, 250,000 lbs. @ $22 per lb.
Direct materials used, 240,000
Direct labor, 150,000 hrs., total cost, $2,225,000
Variable overhead, $340,000
Fixed overhead, $810,000
Units produced, 82,000
Units soldd, 80,500
Selling price per unit, 160.00
Variable selling & administrative expenses, $410,000.
Fixed selling & administrative, $175,000.
Actual machine hours, 330,000.


Prepare a Flexible Budgeted Income Statement using Variable costing.

Reference no: EM1311443

Do you agree with ethical perspectives of your classmates

At the beginning of 2011, the Healthy Life Food Company purchased equipment for $42 million to be used in the manufacture of a new line of gourmet frozen foods. The equipment

Use the symbols ca for current assets

Indicate in which section of the balance sheet each of the following accounts is classified. Use the symbols CA for current assets, NCA for noncurrent assets, CL for current

Costs and ethical concerns of such a bonus system

You are the plant manager. You have recently implemented a bonus system for your employee that provides a 10% bonus for favorable variances. What are the potential benefits, c

Determine the tax rate for quiet city

Assume the amount of property taxes needed to be collected to support the operation of Quiet City for fiscal year 2015 is $ 3,550,000 . Quiet City expects 4% of property taxes

Assume that the building is residential property

On January 19 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,479,500; $357,000 was a

No adjusting entries were recorded during the year

The Jamesway Corporation had the following situations on December 2016. On December 20, 2016, Jamesway received a $4,600 payment from a customer for services to be rendered ea

How much gift card revenue associated

In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. How much gift card revenue associated with the August 2016

Maximum dpad tax savings for this c corporation

Katrina owns 100% of Money Corporation's stock.  Katrina's basis in the stock is $8,000.  Money Corporation has E&P of $40,000.  If Money Corporation redeems 60% of Katrina's


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd