For written assignment Ch7 P3 page 279 in the textbook there is a printing error forVariable Overheadin the Master Budget Column, it should be(40,000)instead of (90,000) that is printed
The Contribution Margin is correct 90,000
Also, there are quite a few issues/errors with the Author provided templates.
So please use the attached templates provided forCh7 Problem 3( with hints and steps to follow) andCh13 P5(provided with check figure) both worksheets are attached within one file.
Let me know if you have any question or concerns
Link to book:
4900 0 4900 -100 5000 254800 9800 245000 -5000 250000 -137200 -19600 -117600 2400 -120000 -45000 11300 40000 13200 40000 15000 40000 11300 12000 11300 12000 15000 12000 0 0 0 0 0 0 100000 0 0 P 07-03 Name : Section : Enter appropriate amount or item in the shaded cells. Use the drop-down lists when available. An asterisk (*) will appear next to an incorrect entry in the outlined cells. Leave no cells blank. Ensure to enter “0” wherever applicable. Enter the unfavorable variances as a negative value . 1. Sewell, Bagan, and Clark, LLP City Branch Performance Report For the Year Ended December 31 Partner in Charge: Vanessa Smith Actual results Variance Flexible budget Master budget Billed hours Revenue Controllable variable costs: Direct labor Variable overhead Contribution margin Controllable fixed costs: Rent Other administrative expenses Branch operating income 3. a. Actual Flexible Master ROI = = Residual Income = U =250,000/5,000 = 50 Per Unit Master Budget to be used to Calculate Flexible Budget F =120000/5000 = 24 / – P-13-05 Name: Section: Enter the appropriate amount or item in the shaded cells. Use the drop-down lists when available. Enter any cash outflows and deductible values with minus sign. Yong Company Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities: Cash at beginning of year Depreciation, equipment Amortization, patent Net income Depreciation Purchase of equipment Issue of notes payable Adjustments to reconcile net income to net Payment of dividends Sale of equipment Issue of mortgage for land cash flows from operating activities: Sale of furniture and fixtures Purchase of patent Gain on sale of furniture and fixtures Decrease in accounts receivable Increase in accounts receivable Decrease in merchandise inventory Changes in current assets and current liabilities: Purchase of furniture and fixtures Decrease in prepaid rent Decrease in accounts payable Decrease in income…