0 items
- Description
ACC 349 Week 4 Connect Assignment
Access Connect.
Complete the Week 4 Problems.
1.
Award: 10 out of 10.00 points
| Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below: |
| Puget Sound Divers Planning Budget For the Month Ended May 31 | ||
| Budgeted diving-hours (q) | 350 | |
| Revenue ($480.00q) | $ | 168,000 |
| Expenses: | ||
| Wages and salaries ($11,900 + $120.00q) | 53,900 | |
| Supplies ($4.00q) | 1,400 | |
| Equipment rental ($2,200 + $23.00q) | 10,250 | |
| Insurance ($3,900) | 3,900 | |
| Miscellaneous ($540 + $1.48q) | 1,058 | |
| Total expense | 70,508 | |
| Net operating income | $ | 97,492 |
| Required: |
| During May, the company’s activity was actually 340 diving-hours. Complete the following flexible budget for that level of activity. |
2.
Award: 10 out of 10.00 points
| Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company’s planning budget for July appears below: |
| Flight Café Planning Budget For the Month Ended July 31 | ||
| Budgeted meals (q) | 23,000 | |
| Revenue ($4.10q) | $ | 94,300 |
| Expenses: | ||
| Raw materials ($2.10q) | 48,300 | |
| Wages and salaries ($6,400 + $0.20q) | 11,000 | |
| Utilities ($2,100 + $0.05q) | 3,250 | |
| Facility rent ($3,600) | 3,600 | |
| Insurance ($3,000) | 3,000 | |
| Miscellaneous ($500 + $0.10q) | 2,800 | |
| Total expense | 71,950 | |
| Net operating income | $ | 22,350 |
| In July, 24,000 meals were actually served. The company’s flexible budget for this level of activity appears below: |
| Flight Café Flexible Budget For the Month Ended July 31 | ||
| Budgeted meals (q) | 24,000 | |
| Revenue ($4.10q) | $ | 98,400 |
| Expenses: | ||
| Raw materials ($2.10q) | 50,400 | |
| Wages and salaries ($6,400 + $0.20q) | 11,200 | |
| Utilities ($2,100 + $0.05q) | 3,300 | |
| Facility rent ($3,600) | 3,600 | |
| Insurance ($3,000) | 3,000 | |
| Miscellaneous ($500 + $0.10q) | 2,900 | |
| Total expense | 74,400 | |
| Net operating income | $ | 24,000 |
| Required: | |
| 1. | Compute the company’s activity variances for July. (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.) |
3.
Award: 10 out of 10.00 points
| Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in August. The company’s flexible budget for August appears below: |
| Quilcene Oysteria Flexible Budget For the Month Ended August 31 | ||
| Actual pounds (q) | 7,600 | |
| Revenue ($4.20q) | $ | 31,920 |
| Expenses: | ||
| Packing supplies ($0.40q) | 3,040 | |
| Oyster bed maintenance ($3,200) | 3,200 | |
| Wages and salaries ($2,300 + $0.40q) | 5,340 | |
| Shipping ($0.65q) | 4,940 | |
| Utilities ($1,250) | 1,250 | |
| Other ($410 + $0.01q) | 486 | |
| Total expense | 18,256 | |
| Net operating income | $ | 13,664 |
| The actual results for August appear below: |
| Quilcene Oysteria Income Statement For the Month Ended August 31 | ||
| Actual pounds | 7,600 | |
| Revenue | $ | 26,800 |
| Expenses: | ||
| Packing supplies | 3,210 | |
| Oyster bed maintenance | 3,060 | |
| Wages and salaries | 5,750 | |
| Shipping | 4,670 | |
| Utilities | 1,060 | |
| Other | 1,106 | |
| Total expense | 18,856 | |
| Net operating income | $ | 7,944 |
| Required: |
| Compute the company’s revenue and spending variances for August. (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.) |
4.
Award: 10 out of 10.00 points
| Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: |
| Division | ||||
| Queensland | New South Wales | |||
| Sales | $ | 1,144,000 | $ | 2,220,000 |
| Average operating assets | $ | 520,000 | $ | 600,000 |
| Net operating income | $ | 125,840 | $ | 177,600 |
| Property, plant, and equipment (net) | $ | 252,000 | $ | 202,000 |
| Required: | |
| 1. | Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.) |
| 2. | Which divisional manager seems to be doing the better job? |
5.
In business, a budget is a method for putting a limit on spending.
True
False
6.
Fixed costs should be included in a flexible budget even though they do not change when the level of activity changes.
True
False
7.
A balanced scorecard should not contain any performance measures concerning customer satisfaction since the extent to which customers are satisfied is beyond the control of any manager in the company.
True
False