The Following Is a Summarized Master Budget That Winnipeg Company

question 120

Multiple Choice

The following is a summarized master budget that Winnipeg Company prepared for January:
$\begin{array}{|l|r|r|}\hline \text { Sales } & & 9,000 \text { units } \\\hline \text { Sales revenue } & \$ 450,000 \\\hline \text { Less variable costs: } & & \\\hline \text { Manufacturing } & \$ 270,000 & \\\hline \text { Selling and administrative } & \underline{18,000} & \underline{288,000} \\\hline \text { Contribution } & & \$ 162,000 \\\hline \text { Less fixed costs: } & & \\\hline \text { Manufacturing } & 72,000 & \\\hline \text { Selling and administrative } & \underline{27,000} & \underline{99,000} \\\hline \text { Operating income } & & \$ 63,000 \\\hline\end{array}$

$\text { Actual results for January were as follows: }$

$\begin{array}{|l|r|}\hline \text { Units produced and sold } & 8,500 \text { units } \\\hline \text { Selling price per unit } & \$ 55.00 \\\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 32.00 \\\hline \text { Selling and administrative } & \$ 1.50 \\\hline \text { Total fixed costs } & \$ 99,000\\\hline\end{array}$

-What were the total flexible budget expenses for January?

• A) $383,750.
• B) $371,000.
• C) $387,000.
• D) $365,500.

---

Definitions:

Single-Entry System

An accounting method where each financial transaction is recorded with a single entry to the accounting records, less complex than double-entry accounting.

Useful Reports

Reports that provide valuable information, aiding in decision-making or problem-solving processes.

Financial Gains and Losses

The increase (gains) or decrease (losses) in financial resources, often as a result of investments, business operations, or market fluctuations.

Monitor and Control

Processes involved in tracking a project's progress and making adjustments to ensure objectives are met efficiently.