Budgetary Control and Responsibility Accounting

The actual selling expenses incurred in March 2020 by Fallon Company are as follows.

Appliance possible Inc. (AP) is manufacturer of ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system,rather then uses only the current master budget. The following data are available for AP's expected costs at production levels of 90,000, 100,000 units.

Rensing Groomers is in the dog-grooming business. Its operating cost are described by the following formulas:

As sales manager, Joe Batista was given following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October.

Chubbs Inc.'s manufacturing overhead budget for the first quarter of 2020 contained the following data.

UrLink Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kikland, had divided the company into two segments. Home Internet Service and business Internet Service. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments.

Venetian Company has two production departments, Fabricating and Assembling. At a department managers meeting, the controller flexible budget graphs to explain total budgeted costs. Separate graphs used on labor hours are used for each department. The graphs show the following.

Fey Company's organization chart includes the president; the vice president of production; three assembly plants- Dallas, Atlanta, and Tucson; and two departments within each plant Machining and Finishing. Budget and actual manufacturing cost data for July 2020 are as follows.

The Mixing Department manager of Malone Company is able to control all overhead costs except ret, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in alphabetical order, are:

Horation Inc. has three divisions which are operated as profit centers. Actual operating data for the division listed alphabetically are as follows.