Douglas Company Provided the Following Budgeted Information for the Current

question 4

Essay

Douglas Company provided the following budgeted information for the current year. $\begin{array}{|l|r|}\hline \text { Sales price } & \$ 50 \text { per unit } \\\hline \text { Variable manufacturing cost } & 32 \text { per unit } \\\hline \text { Fixed manufacturing cost } & \$ 100,000 \text { total } \\\hline \text { Fixed selling and administrative cost } & \$ 40,000 \text { total } \\\hline\end{array}$ Douglas predicted that sales would be 20,000 units,but the sales actually were 22,000 units.The actual sales price was $48.50 per unit,and the actual variable manufacturing cost was $33 per unit.Actual fixed manufacturing cost and fixed selling and administrative cost were $104,000 and $39,000,respectively.
Required:
(a)Using the form below,prepare a flexible budget;show actual results;calculate the flexible budget variances;and indicate whether the variances are favorable (F)or unfavorable (U). $\begin{array}{|l|r|r|r|r|}\hline &\text { Flexible Budget } & \text { Actual Results } & \text { Flexible Budget } & \text { Favorable or }\\&&&\text {Variance } &\text {unfavorable} \\\hline \text { Number of units } &22,000 & 22,000 &0\\\hline \text { Sales Revenue } &1,100,000 & \$ 1,067,000& 33,000 \\\hline \text {Variable manufacturing costs } &704,000 & 726,000 & 22,000 \\\hline \text {Contribution margin } &396,000 & \$ 341,000& 55,000 \\\hline \text {Fixed manufacturing cost } &100,000 & 104,000 & 4,000 \\\hline \text {Fixed selling and administrative cost } &40,000 & 39,000&1,000 \\\hline \text {Net income } &256,000 & \$ 198,000& 58,000 \\\hline\end{array}$ (b)Assess the company's performance compared to the flexible budget.
Align wording in the headings

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Definitions:

Myelin Sheath

The fatty layer that surrounds and insulates nerve fibers, speeding up the transmission of nerve impulses.

Neurilemma

The outermost layer of a myelinated nerve fiber, which plays a crucial role in nerve regeneration and conduction.

Oligodendrocytes

A type of glial cell in the central nervous system responsible for producing and maintaining myelin sheaths around neurons.

Schwann Cells

Specialized cells that myelinate the axons of neurons in the peripheral nervous system, aiding in the rapid transmission of nerve impulses.