PLEASE provid numbers with each answer. 9) Below is a performance report that co

Question

PLEASE provid numbers with each answer. 9) Below is a performance report that compares budgeted and actual profit in the shoe department of Dillard's Department Store for the month of June: Sales:(Budget)$680,000 (Actual)$672,000(Difference)($8,000) Less: Cost of merchandise(Budget)330,000(Actual)325,000(Difference)5,000 Salaries of sales staff (Budget)120,000(Actual)123,000(Difference)(3,000) Controllable profit(Budget)$230,000(Actual)$224,000(Difference)($6,000) Evaluate the department in terms of its increases or decreases in sales and expenses. Do you believe it would be useful to investigate either or both of the increases in expenses? 10) Identify the strengths and weaknesses of the high-low method of separating mixed costs? Do you believe it would be widely selected over the regression method in practice today? Why or why not? 11) Raeon, Inc. produces car radios. The selling price per radio is $1,000. Costs involved in production are: Direct material$100 Direct labor100 Variable manufacturing overhead50 Fixed manufacturing overhead per year$250,000 In addition, the company has fixed selling and administrative cost: Fixed selling costs per year$175,000 Fixed administrative costs per year$75,000 During the year, Raeon produces 1,000 car radios and sells 800 radios. A) how much is profit using full costing? B) How much fixed manufacturing overhead is in ending inventory under full costing? PLEASE provid numbers with each answer. 9) Below is a performance report that compares budgeted and actual profit in the shoe department of Dillard's Department Store for the month of June: Sales:(Budget)$680,000 (Actual)$672,000(Difference)($8,000) Less: Cost of merchandise(Budget)330,000(Actual)325,000(Difference)5,000 Salaries of sales staff (Budget)120,000(Actual)123,000(Difference)(3,000) Controllable profit(Budget)$230,000(Actual)$224,000(Difference)($6,000) Evaluate the department in terms of its increases or decreases in sales and expenses. Do you believe it would be useful to investigate either or both of the increases in expenses? 10) Identify the strengths and weaknesses of the high-low method of separating mixed costs? Do you believe it would be widely selected over the regression method in practice today? Why or why not? 11) Raeon, Inc. produces car radios. The selling price per radio is $1,000. Costs involved in production are: Direct material$100 Direct labor100 Variable manufacturing overhead50 Fixed manufacturing overhead per year$250,000 In addition, the company has fixed selling and administrative cost: Fixed selling costs per year$175,000 Fixed administrative costs per year$75,000 During the year, Raeon produces 1,000 car radios and sells 800 radios. A) how much is profit using full costing? B) How much fixed manufacturing overhead is in ending inventory under full costing?

Explanation / Answer

Hi,

Please find the answer as follows:

Question 9:

In the given case sales have decreased by 1.2% (8000/680000). Cost of merchandise has also decreased by 1.5% and salaries have increased by 2.5%.

It is important that the investigation should focus on salaries and cost of merchandise since they have changed disproportionately to the decrease in sales.

Question 11

Part A:

Part B:

Thanks.

Amount Sales (800*1000) 800000 Cost of Goods Sold:
Variable Costs
Direct Material (800*100) 80000 Direct Labor (800*100) 80000 Variable manufacturing overhead (800*50) 40000 Fixed Manufacturing Costs 250000 Gross Profit 350000 Fixed selling costs per year 175000 Fixed administrative costs per year 75000 Operating Income 100000

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