Tyson's Hardware, a Retailing Company with Several Locations, Anticipated That

question 175

Essay

Tyson's Hardware, a retailing company with several locations, anticipated that it would have 96,000 sales units for 664 customer shipments.Average storage bin usage for various inventories was estimated to be 200 storage bins per day.The costs and cost drivers were determined to be as follows:
During the year the warehouse processed 90,000 units for 600 customer shipments.The workers used 225 storage bins on average each day to sort, store, and process goods for shipment.The actual costs for were:
Required:
a.Prepare a static-budget and show the static-budget variances for each cost item and the total static-budget variance.
b.Prepare a flexible-budget and show the flexible-budget variances for each cost item and the total flexible-budget variance.

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Definitions:

Common Stock

Shares of ownership in a corporation that entitle holders to vote at shareholder meetings and receive dividends.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a specified number of common shares, usually at any time after a predetermined date.

Preferred Stock Conversion

The process by which holders of preferred shares can convert their stocks into a predetermined number of common shares, often under specific conditions.

Dividends in Arrears

Dividends on cumulative preferred stock that have not been declared or paid for the current or previous periods, accumulating until they are paid out.