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    ACC 349 Week 4 Assignment Help 2 | University Of Phoenix

    ACC 349 Week 4 Assignment Help 2 | University Of Phoenix 



    1.



    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)

     

    300  

       Revenue ($460.00q)

    $

    138,000  

     



      Expenses:

     

     

           Wages and salaries ($11,700 + $126.00q)

     

    49,500  

           Supplies ($3.00q)

     

    900  

           Equipment rental ($2,200 + $25.00q)

     

    9,700  

            Insurance ($4,200)

     

    4,200  

           Miscellaneous ($540 + $1.48q)

     

    984  

     



      Total expense

     

    65,284  

     



      Net operating income

    $

    72,716  

     






      
     

    Required:

    During May, the company’s activity was actually 290 diving-hours. Complete the following flexible budget for that level of activity.



     

     

    2.



    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 ($4.00q)

    $

    92,000  

     



      Expenses:

     

     

          Raw materials ($2.10q)

     

    48,300  

          Wages and salaries ($6,100 + $0.20q)

     

    10,700  

          Utilities ($2,000 + $0.05q)

     

    3,150  

          Facility rent ($3,900)

     

    3,900  

          Insurance ($2,200)

     

    2,200  

          Miscellaneous ($600 + $0.10q)

     

    2,900  

     



      Total expense

     

    71,150  

     



      Net operating income

    $

    20,850  

     







     

    In July, 24,000 meals were actually served. The company’s flexible budget for this level of activity appears below:



     

    3.


    Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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)

     

    7,100  

      Revenue ($4.20q)

    $

    29,820  

     



      Expenses:

     

     

          Packing supplies ($0.35q)

     

    2,485  

          Oyster bed maintenance ($3,100)

     

    3,100  

          Wages and salaries ($2,200 + $0.40q)

     

    5,040  

          Shipping ($0.60q)

     

    4,260  

          Utilities ($1,290)

     

    1,290  

          Other ($510 + $0.01q)

     

    581  

     



      Total expense

     

    16,756  

     



      Net operating income

    $

    13,064  

     






       

    The actual results for August appear below:



     

    4.

    Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:


     

     

    Division

     

    Queensland

    New South Wales

      Sales

    $

    2,176,000   

    $

    3,445,000  

      Average operating assets

    $

    640,000   

    $

    650,000  

      Net operating income

    $

    250,240   

    $

    275,600  

      Property, plant, and equipment (net)

    $

    264,000   

    $

    214,000  



     

    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.

    A planning budget is prepared before the period begins and is valid for whatever the actual level of activity turns out to be.

     

    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

     

     

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