At the Beginning of the Period,Cambridge Company Estimated That Sales

question 89

Essay

At the beginning of the period,Cambridge Company estimated that sales would be 10,000 units.Actual sales totaled 14,000 units.The manager was very excited about the unexpected additional income that the extra 4,000 units would produce.Imagine her surprise upon seeing the following report:
$\begin{array}{lrr}&\text { Static Budget }&\text {Actual Results }\\\text { Number of units } & 10,000& 14,000\\\text { Sales } & \$ 500,000& \$ 600,000\\\text { Less variable costs: } & \\\text { Materials } & 120,000 & 164,000\\\text { Labor } & 100,000& 134,000\\\text { Overhead } & 50,000 & 72,000 \\\text { Selling and administrative } & \underline{ 20,000} & \underline{30,000}\\\text { Contribution margin } & \$ 210,000 & \$ 200,000 \\\text { Less fixed costs: } & & \\\text { Manufacturing } & 30,000&32,000\\\text { Selling and administrative } & \underline{60,000} & \underline{56,000} \\\text { Net income } & \underline{\$ 120,000 }& \underline{ \$ 112,000}\end{array}$ The company's owner is very upset,charging that the manager did a lousy job of controlling costs.
Required:
1)Prepare a performance report that can be used to evaluate the owner's charge that the manager did a poor job of controlling costs.Be sure to label variances as favorable or unfavorable.
2)Is the owner justified in charging the manager with poor cost control? Why or why not?

Understand basic cardiovascular terminologies and abbreviations.

Comprehend the structural components of the heart and their functions.

Recognize the common types of heart disease and their characteristics.

Identify the procedures and treatments related to cardiovascular health.

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Definitions:

Sexual Improprieties

Inappropriate or unethical behavior of a sexual nature that violates norms or policies within a professional or personal context.

Feedforward

A management and communication process that focuses on future performance and developments rather than rectifying past mistakes.

Concurrent Controls

Focus on what happens during the work process.

Highest Quality

Refers to products, services, or processes that meet or exceed the highest standards and expectations in terms of performance, reliability, and satisfaction.