Question: The Excel worksheet form that appears below
The Excel worksheet form that appears below is to be used to recreate the Review Problem relating to Harrald’s Fish House. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form. You should proceed to the requirements below only after completing your worksheet. Required: 1. Check your worksheet by changing the revenue in cell D4 to $16.00; the cost of ingredients in cell D5 to $6.50; and the wages and salaries in cell B6 to $10,000. The activity variance for net operating income should now be $850 U and the spending variance for total expenses should be $410 U. If you do not get these answers, find the errors in your worksheet and correct them. a. What is the activity variance for revenue? Explain this variance. b. What is the spending variance for the cost of ingredients? Explain this variance. 
2. Revise the data in your worksheet to reflect the results for the following year: 
Using the flexible budget performance report, briefly evaluate the company’s performance for the year and indicate where attention should be focused.
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D. F G. H 1 Chapter 9: Applying Excel 2 3 Data 4 Revenue 5 Cost of ingredients 6 Wages and salaries 7 Utilities 8 Rent 9 Miscellaneous $16.50 g $6. 25 g $10.400 $0.20 g $800 $2,200 S600 $0.80 g 10 11 Actual results: 12 Revenue 13 Cost of ingredients 14 Wages and salaries 15 Utilities 527,920 $11.110 $10,130 $1,080 $2.200 16 Rent 17 Miscellaneous $2,240 18 19 Planning budget activity 20 Actual activity 1,800 meals served 1,700 meals served 21 22 Enter a formula into each of the cells marked with a ? below 23 Review Problem: Variance Analysis Using a Flexible Budget 24 25 Construct a flexible budget performance report 26 27 Revenue and 28 Actual Results Planning Budget Spending Flexible Activity Budget Variances 29 Variances 30 Meals served 31 Revenue 32 Expenses: Cost of ingredients 34 Wages and salaries Utilities Rent 33 35 36 37 Miscellaneous 38 Total expenses 2. ? 39 Net operating income 44HChapter 9 Form Filed in Chapter 9 Form Chapter 9 Form Data $16.50g $6.25g Revenue .. Cost of ingredients Wages and salaries Utilities $10,400 $800 + $0.20g Rent $2,200 $600 + $0.80g Miscellaneous Actual results: $28,900 $11,300 $10,300 $1,120 $2,300 $2,020 1,700 meals served 1,800 meals served Revenue..... Cost of ingredients... Wages and salaries Utilities ... Rent Miscellaneous Planning budget activity Actual activity
> Imperial Jewelers manufactures and sells a gold bracelet for $189.95.The company’s accounting system says that the unit product cost for this bracelet is $149.00 as shown below: Direct materials ........................................$ 84.00 Direct lab
> Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts called Case A and Case B: Case A: The company chronically has no idle capacity and the
> Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company’s Springfield Club reported the following results fo
> Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Janet Dunn, who has just been appointed general manager of the Westw
> Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. The production superintendent was pleased when he saw this report and commented: “T
> Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials—X442 and Y661. The company uses a standard cost system, with the foll
> Wallis Company manufactures only one product and uses a standard cost system.The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company’s manufacturing overhead
> Refer to the data in Exercise 10–6. Assume that instead of producing 4,000 units during the month, the company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inv
> Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: During August, 5,750 hours of direct labor time were
> Refer to the data for Lavage Rapide in Exercises 9–10 and 9–13. Data given in Exercise 9-10: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data
> Refer to the data for Lavage Rapide in Exercise 9–10. Also assume that the company’s actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed……………………………………………………………………..8,800 Rev
> Refer to the data for Lavage Rapide in Exercise 9–10. The company actually washed 8,800 cars in August. Exercise 9–10: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility nea
> Refer to the data for Lavage Rapide in Exercise 9–10. The company actually washed 8,800 cars in August. Data given in Exercise 9-10: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Mo
> Refer to the data for The Terminator Inc. in Exercise 9–6. A management intern has suggested that the budgeted revenues and costs should be adjusted for the actual level of activity in April before they are compared to the actual revenu
> Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company’s planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) ..........................
> Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Wolfpack Company Balance Sheet June 30 Assets Cash..................................................................
> Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet September 30 Assets Cash.......................................................................................$ 59,000 Ac
> Hartwell Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. Its predetermined overhead rate includes $1,760,000 of fixed manufacturing overhead in the numerator and 44,000 dire
> The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: In addition, 6,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the be
> Refer to the data for Beech Corporation in Exercise 2. The company is considering making the following changes to the assumptions underlying its master budget: 1. Each month’s credit sales are collected 45% in the month of sale and 55% in the month follo
> Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash...................
> Weller Company’s budgeted unit sales for the upcoming fiscal year are provided below: The company’s variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include adve
> Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow: Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $18. b. T
> Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For examp
> SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service,
> The following activities occur at Greenwich Corporation, a company that manufactures a variety of products. a. Receive raw materials from suppliers. b. Manage parts inventories. c. Do rough milling work on products. d. Interview and process new employees
> Refer to the data in Exercise 8. Assume that Minneapolis’ sales by major market are: The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost
> Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting job
> Athens Company is conducting a time-driven activity-based costing study in its Engineering Department. To aid the study, the company provided the following data regarding its Engineering Department and the customers served by the department: Required:
> Refer to the data in Exercise 6 for Chuck Wagon Grills. Assume in this exercise that the company uses absorption costing. Data from Exercise 6: Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Dir
> Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Direct materials ................................................................$9 Direct labor ...................................................
> Crossfire Company segments its business into two regions—East and West. The company prepared a contribution format segmented income statement as shown below: Required: 1. Compute the companywide break-even point in dollar sales. 2. Co
> Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable costs per unit: Manufacturing: Direct materials…………………………. .............................$25 Direct labo
> Parker Products, Inc. is a manufacturer whose absorption costing income statement reported sales of $123 million and a net operating loss of $18 million. According to a CVP analysis prepared for management, the company’s break-even point is $115 million
> Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales, contribution margin ratio, and net operating income are $500,000, 46%, and $10,000, respectively. The North Division’s contribution margin and
> Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown below: Required: 1. Compute the companywide break-even point in dollar sales. 2.
> Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: The company’s manufacturing overhead cost is applied to production on the basis of direct labor hours. A
> Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: The company’s manufacturing overhead cost is applied to production on the basis of direct labor hours. A
> Matheson Electronics has just developed a new electronic device it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following information: a. New equipment would have to be acquired to produce
> Bracey Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials ..................................................................$19 Fixed costs p
> Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: The company’s manufacturing overhead cost is applied to production on the basis of direct labor hours. A
> Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company’s factory; Jim is manager of the equipment maintenance department. The men ha
> O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials ...................................................
> O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials ...................................................
> The Excel worksheet form that appears below is to be used to recreate the main example in the text pertaining to Colonial Pewter Company. Download the workbook containing this form from Connect, where you will also receive instructions about how to use t
> The Excel worksheet form that appears below is to be used to recreate Example E and Exhibit 13–8. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form. Y
> The Excel worksheet form that appears below is to be used to recreate the example in the text related to Santa Maria Wool Cooperative. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this
> The Excel worksheet form that appears below is to be used to recreate the Review Problem pertaining to the Magnetic Imaging Division of Medical Diagnostics, Inc.Download the workbook containing this form from Connect, where you will also receive instruct
> The Excel worksheet form that appears below is to be used to recreate the main example in the text pertaining to Colonial Pewter Company. Download the workbook containing this form from Connect, where you will also receive instructions about how to use t
> Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable cost per unit: Direct materials ............................................................$16 Fixe
> The Excel worksheet form that appears below is to be used to recreate the Review Problem related to Mynor Corporation. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.
> The Excel worksheet form that appears below is to be used to recreate the Review Problem pertaining to Ferris Corporation. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet f
> The Excel worksheet form that appears below is to be used to recreate portions of Review Problem 1 relating to Dexter Corporation. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this wo
> Refer to the financial statements for Rusco Company in Problem 14–13. Because the Cash account decreased so dramatically during this year, the company’s executive committee is anxious to see how the income statement wo
> Refer.to.the.data.for.Carmono.Company.in.Exercise.14–6. Data.given.in.Exercise.14-6: Comparative.financial.statement.data.for.Carmono.Company.follow: For this year the company reported net income as follows: Sales…
> Refer to the data for Pavolik Company in Exercise 14–4. Data given in Exercise 14–4: The following changes took place last year in Pavolik Company’s balance sheet accounts: Long-term investments th
> Refer to the financial statements for Rusco Company in Problem 14–13. Because the Cash account decreased so dramatically during this year, the company’s executive committee is anxious to see how the income statement wo
> Refer to the data for Hanna Company in Exercise 14–2.The company’s income statement for the year appears below: Sales ...............................................................$350,000 Cost of goods sold ........
> Refer to the data for Carmono Company in Exercise 14–6. Data.given.in.Exercise.14-6: Comparative.financial.statement.data.for.Carmono.Company.follow: For this year the company reported net income as follows: Sales…
> Kelly Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable cost per unit: Direct materials .....................................................................$1
> Refer to the data for Pavolik Company in Exercise 14–4. Data given in Exercise 14–4: The following changes took place last year in Pavolik Company’s balance sheet accounts: Long-term investments tha
> Shimano Company has an opportunity to manufacture and sell one of two new products for a five year period. The company’s tax rate is 30% and its after-tax cost of capital is 14%. The cost and revenue estimates for each product are as fo
> Rosman Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Rosman estimated the following costs and revenues for the project: Cost of new equipment needed ………………………………………. $420,000 Sale of
> Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: Cost of equipment needed ……………………………………………….. $250,000 Working
> Winthrop Company has an opportunity to manufacture and sell a new product for a five-year period. To pursue this opportunity, the company would need to purchase a piece of equipment for $130,000. The equipment would have a useful life of five years and z
> Gaston Company is considering a capital budgeting project that would require a $2,000,000 investment in equipment with a useful life of five years and no salvage value. The company’s tax rate is 30% and its after-tax cost of capital is
> Aldean Company wants to use absorption cost-plus pricing to set the selling price on a new product. The company plans to invest $200,000 in operating assets to produce and sell 16,000 units. Its required return on investment (ROI) in its operating assets
> Wilderness Products, Inc., has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,350,000 will be necessary to carry inventories and accounts rec
> The postal service of St. Vincent, an island in the West Indies, obtains a significant portion of its revenues from sales of special souvenir sheets to stamp collectors. The postal service purchases the souvenir sheets from a supplier for $0.80 each. St.
> Valmont Company has developed a new industrial piece of equipment called the XP–200. The company is considering two methods of establishing a selling price for the XP–200—absorption cost-plus pricing and value-based pricing. Valmont’s cost accounting sys
> Lyons Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials ......................................................................$13 Fixed cost
> Northport Company manufactures numerous products, one of which is called Sea Breeze Skin Cleanser. The company has provided the following data regarding this product: Unit sales (a) .......................................................................
> McDermott Company has developed a new industrial component called IC–75. The company is excited about IC–75 because it offers superior performance relative to the comparable component sold by McDermott’s primary competitor. The competing part sells for $
> Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone, Montana. She is unsure how to price her ice cream cones and has experimented with two prices in successive weeks during the busy August season. The numb
> The managers of Midwest Whitetails magazine (a magazine dedicated to deer hunters) want to establish a price for customers wishing to place a full-page advertisement in their magazine for one month. To help with the price setting decision, the managers i
> Messina Company wants to use absorption cost-plus pricing to establish the selling price for a new product. The company plans to invest $650,000 in operating assets that provide the capacity to make 30,000 units. Its required return on investment (ROI) i
> National Restaurant Supply, Inc., sells restaurant equipment and supplies throughout most of the United States. Management is considering adding a machine that makes sorbet to its line of ice cream making machines. Management will negotiate the purchase
> Currington Company wants to use absorption cost-plus pricing to set the selling price on a newly remodeled product. The company plans to invest $150,000 in operating assets to produce and sell 12,000 units. Its required return on investment (ROI) in its
> Weller Industries is a decentralized organization with six divisions. The company’s Electrical Division produces a variety of electrical items, including an X52 electrical fitting. The Electrical Division (which is operating at capacity) sells this fitti
> Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions: Managers are f
> Stavos Company’s Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: Variable cost per screen………â€&brvba
> Norwall Company’s budgeted variable manufacturing overhead cost is $3.00 per machine-hour and its budgeted fixed manufacturing overhead is $300,000 per month. The following information is available for a recent month: a. The denominator activity of 60,00
> Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow: Hrubec Products has just acquired a small company that manufactures pap
> In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits
> Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board …………………………………………………..$1
> What does a manufacturing cycle efficiency (MCE) of less than 1 mean? How would you interpret an MCE of 0.40?
> Why is it a good idea to create a “Budgeting Assumptions” tab when creating a master budget in Microsoft Excel?
> What are the two stages of allocation in activity-based costing?
> If the units produced equals the units sold, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?
> Why aren’t transactions involving accounts payable considered to be financing activities?
> Should a company allocate its common fixed costs to business segments when computing the break-even point for those segments? Why?
> What general guidelines can you provide for interpreting the statement of cash flows?
> Sunk costs are easy to spot—they’re the fixed costs associated with a decision.” Do you agree? Explain.
> Stahl Company is conducting a time-driven activity-based costing study in its Shipping Department. To aid the study, the company provided the following data regarding its Shipping Department and the customers served by the department: Required: 1. Usin
> Refer to the data in Exercises 7A–1 and 7A–2. Now assume that Saratoga Company would like to answer the following “what if” question using its time-driven activity-based costing syst
> Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow: Selling price per unit on the intermediate market ……………………………….$60 Variable costs per unit……………………………………
> Refer to the data in Exercise 7A–1. In addition, assume that Saratoga Company provided the following activity data for all jobs produced during the year: Data given in Exercise 7A–1: Saratoga Company manufactures job
> Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing study in its Purchasing Department to better understand how Purchasing Department labor costs are consumed by individual jobs. T
> Markus Company’s common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts from this year’s finan
> Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: During the year, Ravenna paid a $6,000 cash dividend and it sold a
