Samuel Christian Lianto

2440005321 – LF24

SEBELUM UAS

Assignment 1
The actual selling expenses incurred in March 2020 by Fallon Company are as follows.

Instructions:
a. Prepare a flexible budget performance report for March using the budget data in E25.5,
assuming that March sales were $170,000.
b. Prepare a flexible budget performance report, assuming that March sales were $180,000.
c. Comment on the importance of using flexible budgets in evaluating the performance of the sales
manager.
E25-5. Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected
to range from $170,000 to $200,000.
Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%,
traveling 3%, and delivery 2%.

Jawaban di bawah
F= Favourable
U= Unfavourable
A.
Planning Revenue: $170.000, $180.000, $190.000, $200.000 ($170.000-$200.000)
Flexible Revenue $170.000
Actual Revenue $170.000
Fallon Company
Flexible Budget Performance Report
For the Month Ended March 31, 2020
Revenue Planning Activity Flexible Revenue and Actual
/Cost Formulas Budget Variances Budget Spending Variances Results
Revenue $ 170.000 $ - $ 170.000 $ - U $ 170.000
Expenses:
Sales Commissions (6%R) $ 10.200 $ - $ 10.200 $ 800 F
$ 11.000
Advertising (4%R) $ 6.800 $ - $ 6.800 $ 100 F
$ 6.900
Travel (3%R) $ 5.100 $ - $ 5.100 $ - F
$ 5.100
Delivery (2%R) $ 3.400 $ - $ 3.400 $ 50 F
$ 3.450
Sales Salaries ($35.000) $ 35.000 $ 35.000 $ 35.000
Depreciation ($7.000) $ 7.000 $ 7.000 $ 7.000
Insurance ($1.000) $ 1.000 $ 1.000 $ 1.000
Total Expenses $ 68.500 $ - $ 68.500 $ 950 U $ 69.450
Net Operating Income $ 101.500 $ - $ 101.500 $ -950 U $ 100.550

Fallon Company
Flexible Budget Performance Report
For the Month Ended March 31, 2020
Revenue Planning Activity Flexible Revenue and Actual
/Cost Formulas Budget Variances Budget Spending Variances Results
Revenue $ 180.000 $ 10.000 U $ 170.000 $ - $ 170.000
Expenses:
Sales Commissions (6%R) $ 10.800 $ -600 F
$ 10.200 $ 800 U $ 11.000
Advertising (4%R) $ 7.200 $ -400 F
$ 6.800 $ 100 U $ 6.900
Travel (3%R) $ 5.400 $ -300 F
$ 5.100 $ - $ 5.100
Delivery (2%R) $ 3.600 $ -200 F
$ 3.400 $ 50 U $ 3.450
Sales Salaries ($35.000) $ 35.000 $ 35.000 $ 35.000
Depreciation ($7.000) $ 7.000 $ 7.000 $ 7.000
Insurance ($1.000) $ 1.000 $ 1.000 $ 1.000
Total Expenses $ 70.000 $ -1.500 F $ 68.500 $ 950 U $ 69.450
Net Operating Income $ 110.000 $ -8.500 U $ 101.500 $ -950 U $ 100.550

Fallon Company
Flexible Budget Performance Report
For the Month Ended March 31, 2020
Revenue Planning Activity Flexible Revenue and Actual
/Cost Formulas Budget Variances Budget Spending Variances Results
Revenue $ 190.000 $ 20.000 U $ 170.000 $ - $ 170.000
Expenses:
Sales Commissions (6%R) $ 11.400 $ -1.200 F $ 10.200 $ 800 U $ 11.000
Advertising (4%R) $ 7.600 $ -800 F $ 6.800 $ 100 U $ 6.900
Travel (3%R) $ 5.700 $ -600 F $ 5.100 $ - $ 5.100
Delivery (2%R) $ 3.800 $ -400 F $ 3.400 $ 50 U $ 3.450
Sales Salaries ($35.000) $ 35.000 $ 35.000 $ 35.000
Depreciation ($7.000) $ 7.000 $ 7.000 $ 7.000
Insurance ($1.000) $ 1.000 $ 1.000 $ 1.000
Total Expenses $ 71.500 $ -3.000 F $ 68.500 $ 950 U $ 69.450
Net Operating Income $ 118.500 $ -17.000 U $ 101.500 $ -950 U $ 100.550

Fallon Company
Flexible Budget Performance Report
For the Month Ended March 31, 2020
Revenue Planning Activity Flexible Revenue and Actual
/Cost Formulas Budget Variances Budget Spending Variances Results
Revenue $ 200.000 $ 30.000 U $ 170.000 $ - $ 170.000
Expenses:
Sales Commissions (6%R) $ 12.000 $ -1.800 F $ 10.200 $ 800 U $ 11.000
Advertising (4%R) $ 8.000 $ -1.200 F $ 6.800 $ 100 U $ 6.900
Travel (3%R) $ 6.000 $ -900 F $ 5.100 $ - $ 5.100
Delivery (2%R) $ 4.000 $ -600 F $ 3.400 $ 50 U $ 3.450
Sales Salaries ($35.000) $ 35.000 $ 35.000 $ 35.000
Depreciation ($7.000) $ 7.000 $ 7.000 $ 7.000
Insurance ($1.000) $ 1.000 $ 1.000 $ 1.000
Total Expenses $ 73.000 $ -4.500 F $ 68.500 $ 950 U $ 69.450
Net Operating Income $ 127.000 $ -25.500 U $ 101.500 $ -950 U $ 100.550
B.
Planning Revenue: $170.000, $180.000, $190.000, $200.000 ($170.000-$200.000)
Flexible Revenue: $170.000
Actual Revenue: $170.000
Fallon Company
Flexible Budget Performance Report
For the Month Ended March 31, 2020
Revenue Planning Activity Flexible Revenue and Actual
/Cost Formulas Budget Variances Budget Spending Variances Results
Revenue $ 170.000 $ 10.000 F $ 180.000 $ - $ 180.000
Expenses:
Sales Commissions (6%R) $ 10.200 $ 600 U$ 10.800 $ 200 U $ 11.000
Advertising (4%R) $ 6.800 $ 400 U$ 7.200 $ -300 F $ 6.900
Travel (3%R) $ 5.100 $ 300 U$ 5.400 $ -300 F $ 5.100
Delivery (2%R) $ 3.400 $ 200 U$ 3.600 $ -150 F $ 3.450
Sales Salaries ($35.000) $ 35.000 $ 35.000 $ 35.000
Depreciation ($7.000) $ 7.000 $ 7.000 $ 7.000
Insurance ($1.000) $ 1.000 $ 1.000 $ 1.000
Total Expenses $ 68.500 $ 1.500 U $ 70.000 $ -550 F $ 69.450
Net Operating Income $ 101.500 $ 8.500 F $ 110.000 $ 550 F $ 110.550

Fallon Company
Flexible Budget Performance Report
For the Month Ended March 31, 2020
Revenue Planning Activity Flexible Revenue and Actual
/Cost Formulas Budget Variances Budget Spending Variances Results
Revenue $ 180.000 $ - F $ 180.000 $ - $ 180.000
Expenses:
Sales Commissions (6%R) $ 10.800 $ - U
$ 10.800 $ 200 U $ 11.000
Advertising (4%R) $ 7.200 $ - U
$ 7.200 $ -300 F $ 6.900
Travel (3%R) $ 5.400 $ - U
$ 5.400 $ -300 F $ 5.100
Delivery (2%R) $ 3.600 $ - U
$ 3.600 $ -150 F $ 3.450
Sales Salaries ($35.000) $ 35.000 $ 35.000 $ 35.000
Depreciation ($7.000) $ 7.000 $ 7.000 $ 7.000
Insurance ($1.000) $ 1.000 $ 1.000 $ 1.000
Total Expenses $ 70.000 $ - U $ 70.000 $ -550 F $ 69.450
Net Operating Income $ 110.000 $ - F $ 110.000 $ 550 F $ 110.550

Fallon Company
Flexible Budget Performance Report
For the Month Ended March 31, 2020
Revenue Planning Activity Flexible Revenue and Actual
/Cost Formulas Budget Variances Budget Spending Variances Results
Revenue $ 190.000 $ -10.000 U $ 180.000 $ - $ 180.000
Expenses:
Sales Commissions (6%R) $ 11.400 $ -600 F
$ 10.800 $ 200 U $ 11.000
Advertising (4%R) $ 7.600 $ -400 F
$ 7.200 $ -300 F $ 6.900
Travel (3%R) $ 5.700 $ -300 F
$ 5.400 $ -300 F $ 5.100
Delivery (2%R) $ 3.800 $ -200 F
$ 3.600 $ -150 F $ 3.450
Sales Salaries ($35.000) $ 35.000 $ 35.000 $ 35.000
Depreciation ($7.000) $ 7.000 $ 7.000 $ 7.000
Insurance ($1.000) $ 1.000 $ 1.000 $ 1.000
Total Expenses $ 71.500 $ -1.500 F $ 70.000 $ -550 F $ 69.450
Net Operating Income $ 118.500 $ -8.500 U $ 110.000 $ 550 F $ 110.550

Fallon Company
Flexible Budget Performance Report
For the Month Ended March 31, 2020
Revenue Planning Activity Flexible Revenue and Actual
/Cost Formulas Budget Variances Budget Spending Variances Results
Revenue $ 200.000 $ -20.000 U $ 180.000 $ - $ 180.000
Expenses:
Sales Commissions (6%R) $ 12.000 $ -1.200 F $ 10.800 $ 200 U $ 11.000
Advertising (4%R) $ 8.000 $ -800 F $ 7.200 $ -300 F $ 6.900
Travel (3%R) $ 6.000 $ -600 F $ 5.400 $ -300 F $ 5.100
Delivery (2%R) $ 4.000 $ -400 F $ 3.600 $ -150 F $ 3.450
Sales Salaries ($35.000) $ 35.000 $ 35.000 $ 35.000
Depreciation ($7.000) $ 7.000 $ 7.000 $ 7.000
Insurance ($1.000) $ 1.000 $ 1.000 $ 1.000
Total Expenses $ 73.000 $ -3.000 F $ 70.000 $ -550 F $ 69.450
Net Operating Income $ 127.000 $ -17.000 U $ 110.000 $ 550 F $ 110.550
C. Flexible Budget sangat penting untuk digunakan karena pada flexible budget report terdapat planning
budget, flexible budget, dan actual result. Hal ini mengakibatkan manajer dapat membandingkan
planning budget dengan flexible budget untuk menentukan perbedaan tingkat penjualan dan biaya
dengan ekspektasinya. Manajer juga dapat membandingkan flexible budget dengan actual result untuk
menemukan jika terdapat kecurangan atau kesalahan pada transaksi. Perbandingan flexible budget
dengan actual budget juga dapat digunakan untuk menentukan kerugian atau keuntungan yang terjadi
pada perusahaan dengan lebih jelas.

Assignment 2
Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing
process are shown below for two levels of production.

Instructions:
a. Define the terms variable costs, fixed costs, and mixed costs.
b. Classify each cost above as either variable, fixed, or mixed

a. Variable Costs: Variable Costs adalah biaya yang dapat berubah sesuai dengan jumlah aktivitas
.........................(pembuatan barang, pemasukan, dll) (Variable Costs x Level of Quantity)
Fixed Costs: Fixed Costs adalah biaya tetap yang tidak akan berubah walaupun jumlah aktivitas
berubah.
Mixed Costs: Mixed Costs adalah biaya campuran dari Fixed Costs dan Variable Costs. Mixed
Costs biasa mencakup seluruh biaya pengeluaran suatu perusahaan.
Mixed Costs= (Variable Costs x Quantity) + Fixed Costs

b. Direct Material = Variable Cost

As a result of this budget report, Joe was called into the president’s office and congratulated on his fine
sales performance. He was reprimanded, however, for allowing his costs to get out of control. Joe knew
something was wrong with the performance report that he had been given. However, he was not sure
what to do, and comes to you for advice.

Instructions:
a. Prepare a budget report based on flexible budget data to help Joe.
b. Should Joe have been reprimanded? Explain.

a. F= Favourable
U= Unfavourable
Soria Company
Clothing Department
Budget Report
For the Month Ended October 31, 2020
Flexible Budget Actual Difference
Sales in unit 10.000 10.000 -
Variable Expenses
Sales Commission ($0.3Q) $ 3.000 $ 2.600 $ 400 F
Advertising Expertise ($0.09Q) $ 900 $ 850 $ 50 F
Travel Expense ($0.45Q) $ 4.500 $ 4.100 $ 400 F
Free Samples Given Out ($0.2Q) $ 2.000 $ 1.400 $ 600 F
Total Variable ($1.04Q) $ 10.400 $ 8.950 $ 1.450 F

Fixed Expense
Rent $ 1.500 $ 1.500 $ -
Sales Salaries $ 1.200 $ 1.200 $ -
Offi ce Salaries $ 800 $ 800 $ -
Depreciation - Autos (sales staff) $ 500 $ 500 $ -
Total Fixed $ 4.000 $ 4.000 $ -
Total Expenses $ 14.400 $ 12.950 $ 1.450 F
b. Joe seharusnya tidak ditegur karena jika kita lihat pada laporannya menggunakan flexible
budget, Joe sebenarnya menguntungkan perusahaan dengan memberikan lebih banyak
penjualan dengan biaya yang lebih kecil. Joe memiliki biaya $1.450 lebih murah dengan 2000
penjualan lebih banyak dibandingkan ekspektasi awal.