The CEO of Buckstars Is Interested in Reviewing the May

question 22

Essay

The CEO of Buckstars is interested in reviewing the May 20xx performance report for Cost Center 7-11.Prepare a brief performance report for the CEO utilizing the following information for Cost Center 7-11.Line items should be broken out between direct materials,direct labor,variable overhead,and fixed overhead.
$\begin{array}{lrrr}&& \text { Flexible } & \text { Master Budget } \\ &\text { Actual Results } & \text { Budget }\\\text { Ground coffee } & \$ 1,350 & \$ 1,200 & \$ 1,270 \\\text { Flavored syrups } & 2,300 & 2,320 & 3,000 \\\text { Milk } & 850 & 800 & 950 \\\text { Servers' wages } & 3,500 & 3,800 & 3,600 \\\text { Supervisor's salary } & 5,000 & 5,000 & 5,000 \\\text { Espresso machine repair } & 50 & 120 & 150\end{array}$

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Definitions:

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the tax rate you would pay on one additional dollar of income.

Weighted Average Cost

Weighted average cost often refers to the weighted average cost of capital (WACC), a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Face Value

The nominal or dollar value printed on a security or currency.