problems 1 fancy feast bakery makes cakes for special occasions fancy feast estimate 4313392

problems 1 fancy feast bakery makes cakes for special occasions fancy feast estimate 4313392

Problems

1.Fancy Feast Bakery makes cakes for special occasions.  Fancy Feast estimates the following revenue and costs for the upcoming month.

Expected sales

300 cakes @ $20 per cake

Expected cost of Ingredients

$4 per cake

Expected labor costs

$20 per hour

Estimated labor hours required

½ hour per cake

Estimated variable overhead

$1 per baker hour

Estimated total fixed costs:

   Rent

$250

   Equipment costs

$1,000

   Cake Delivery costs

$150

Required:

Prepare the Master Budget for Fancy Feast.

2.A variance is the difference between an actual result and a budgeted amount.  Variance analysis helps organizations determine whether their people and processes are performing as expected. 

Required:

Enter the identifying letters in the blanks below to indicate the term that best matches each description.

A.Favorable varianceF.Sales price variance

B.Flexible budgetG.Sales volume variance

C.Input price varianceH.Spending variance

D.Input quantity varianceI.Total profit variance

E.Master budgetJ.Variance analysis

a._____

The difference between actual profit and master budget profit.

b._____

Profit effect associated with the difference between the budgeted and actual price of an input.

c._____

Technique for determining why actual revenues, costs, and profit differ from their budgeted amounts.

d._____

A difference between an actual result and a budgeted amount that leads to an increase in profit.

e._____

The difference in profit between the flexible budget and the master budget.

f._____

A budget for the actual level of sales, retaining all other plan assumptions in the master budget.

g._____

The difference between actual revenues and flexible budget revenues.

h._____

The budget as prepared at the start of the accounting period.

i._____

The difference between budgeted fixed costs and actual fixed costs.

j._____

Profit effect associated with the difference between the budgeted and actual input

quantity used.

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