The Greensboro Performing Arts Center (GPAC) has a total capacity of 7,500 seats: 1,900 center seats, 2,400 side seats, and 3,200 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows: Percentage Occupied Center. $ Side Ticket Price Budgeted Seats Actual Seats Balcony 80 70 60 80 % 70 75 85 % 75 65 he actual ticket prices were the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance.

The Greensboro Performing Arts Center (GPAC) has a total capacity of 7,500 seats: 1,900 center seats, 2,400 side seats, and 3,200 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows: Percentage Occupied Center. $ Side Ticket Price Budgeted Seats Actual Seats Balcony 80 70 60 80 % 70 75 85 % 75 65 he actual ticket prices were the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Greensboro Performing Arts Center (GPAC) has a total capacity of 8,500 seats: 2,300 center seats, 2,800 side seats, and 3,400 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows: Ticket Price Percentage Occupied Budgeted Seats Actual Seats Center $ 80 80% 85% Side 70 70 75 Balcony 60 75 65 The actual ticket prices were the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance. Required: Compute the following for the show (each different seat section): 1. The budgeted and actual sales mix percentages for different types of seats. 2. The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin. 3-a. The total sales mix variance. 3-b. The total sales quantity variance. 4. The total sales volume variance.
The Rock of Aegis presents a series of concerts throughout the year. Budgeted fixed costs total $300,000 for the concert season; variable costs are expected to average $5 per patron. The orchestra uses flexible budgeting.What is the Total costs at 9,500 patrons?
Peter Rabbit, which had a six-week run with three performances on each weekend. The costs from the current year's planning budget appear below. The Little Theatre Costs from the Planning Budget For the Year Ended December 31 Budgeted number of productions 6 Budgeted number of performances 108 Actors and directors wages $224,640 Stagehands wages 41, 040 Ticket booth personnel and ushers wages 24,840 Scenery, costumes, and props 108,480 Theater hall rent 62, 640 Printed programs 35, 640 Publicity 12, 480 Administrative expenses 44, 280 Total $ 554, 040 Some of the costs vary with the number of productions, some with the number of performances, and some are fixed and depend on neither the number of productions nor the number of performances. The costs of scenery, costumes, props, and publicity vary with the number of productions. It doesn't make any difference how many times Peter Rabbit is performed, the cost of the scenery is the same. Likewise, the cost of publicizing a play with…
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $70? 2$ b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 11,500 units, how many units should be produced? units c. What dollar amount of materials should be purchased at $6 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively.
Shalom Company measures its activity in terms of court reservations. Last month, the budgeted level of activity was 480 player-visits, and the actual level of activity was 440 player-visits. The company budgets for variable overhead costs of P3.30 per player-visit and fixed overhead costs of P10,600 per month. The actual variable overhead cost last month was P3,830 and the actual fixed overhead cost was P8,780. In your flexible budget performance report, identify the difference between budgeted and actual costs and indicate as favorable or unfavorable. Total variable overhead costs (not 2246UF) Total manufacturing costs (not 426UF)
A local engineering firm is bidding on a design project for a new client. The total budgeted direct-labor costs for the firm are $600,000. The total budgeted indirect costs are $800,000. It is estimated that there are 10,000 billable hours in total. a. What is the budgeted direct-labor cost rate? b. What is the budgeted indirect-cost rate assuming direct-labor cost is the allocation base? c. What should be the engineering firm bid on the project if the direct labor hours are estimated at 300 hours?
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement. a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $65? b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 11,000 units, how many units should be produced? c. What dollar amount of materials should be purchased at $5.50 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively.
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $35? b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 8,000 units, how many units should be produced?Answer units c. What dollar amount of materials should be purchased at $2.50 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively. d. How much direct labor cost should be incurred if each unit produced requires 0.5 hours at an hourly rate of $16? e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $45,000 and variable manufacturing…
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement. a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $65? 9750000 b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 11,000 units, how many units should be produced? 155000 c. What dollar amount of materials should be purchased at $5.50 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively. 2139500 How much direct labor cost should be incurred if each unit produced requires 0.5 hours at an hourly rate of $22? How much manufacturing overhead should be incurred if fixed manufacturing overhead is $45,000 and variable…
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $360,000 are allocated on the basis of budgeted warehouse - hours. Data Center Department costs of S180,000 are allocated based on the number of computer log - on hours. The costs of operating departments Music and Books are $135,000 and S162,000, respectively. Data on budgeted warehouse - hours and number f computer log - on hours are as follows: Support Departments Warehouse Department Production Departments Data Center Department Music Books Budgeted costs Budgeted warehouse - hours Number of computer hours $360,000 $180.000 $135,000 $162.000 NA 570 1,060 1,580 300 NA 830 1,100 Using the step - down method, what amount of Data Center Department cost will be allocated to the Warehouse Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up) O A. $62,945 O B. $0 OC. $24,215 O D. $180,000
Bear Creek Golf Center reported actual operating income for the current year as $66,000. The flexible budget operating income for actual volume is $56,000, while the static budget operating income is $61,000. What is the flexible budget variance for operating income? A. $5,000 favorable B. $5,000 unfavorable C. $10,000 unfavorable D. $10,000 favorable
Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per Variable element per client-visit $ 25.80 $ 7.10 month Revenue $ 0 $ 20,200 Personnel expenses Medical supplies 900 4.60 Occupancy expenses Administrative expenses 5,500 0.70 3,500 0.20 Total expenses $ 30,100 $ 12.60 Actual results for May: $ 78,246 $ 42,647 $ 15,002 $ 7,289 $ 4,294 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses The activity variance for net operating income in May would be closest to: