1.What is the total budgeted indirect cost at theElmorestore in January2018?What is the total budgeted cost of each activity at theElmorestore for January2018?What is the budgeted indirect cost of each product category for January2018?2.Which product category has the largest fraction of total budgeted indirect costs?3.Given your answer in requirement 2, what advantage doesMaclin's Cornergain by using an activity-based approach to budgeting over, say, allocating indirect costs to products based on cost of goods sold? ### Activity-Based Budgeting Example for January 2018#### OverviewThe Elmore store at Maclin's Corner, a neighborhood convenience store chain, is preparing its activity-based budget for January 2018. The store has three main product categories:- **Soft Drinks** (35% of Cost of Goods Sold - COGS)- **Fresh Produce** (25% of COGS)- **Packaged Food** (40% of COGS)Four key activities consume indirect resources at the Elmore store. These activities, along with their cost drivers and rates, are outlined in the data table below.#### Task**Requirement 1**: - Determine the total budgeted indirect cost at the Elmore store for January 2018.- Calculate the budgeted cost for each activity.- Find the budgeted indirect cost for each product category for January 2018.Complete the table to determine the following:- Total budgeted indirect cost for each activity.- Budgeted indirect cost for each product category for January 2018.- Calculate the percentage of total indirect costs.*(Round percentages to the nearest hundredth percent, X.XX%.)*#### Data TableFor January 2018, the cost drivers for each activity are as follows:| **Activity** | **Cost Driver** | **Rate ($)** | **Soft Drinks** | **Fresh Snacks** | **Packaged Food** ||---------------------|-----------------------------|--------------|-----------------|-----------------|------------------|| **Ordering** | Number of purchase orders | 86 | 14 | 29 | 14 || **Delivery** | Number of deliveries | 85 | 10 | 68 | 20 || **Shelf-stocking** | Hours of stocking time | 24.00 | 19 | 178 | 98 || **Customer support**| Number of items sold | 0.17 | 4,100 | 34,100 | 11,000 |This data will help calculate the total indirect costs attributed to each activity and product category, providing a detailed breakdown of financial planning based on the activity-based budget approach.

"As per bartleby guidelines we will solve the first three question for you. If you want any specific…

Answered: 1. What is the total budgeted indirect…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Considering what you have learned in this module, describe the basic flow of the various operating budgets within the master budget for a manufacturing firm. This should include a discussion of which budget is prepared first, and how that budget is used to prepare the next budget(s). You do not need to go into detail about the calculations for every budget. Discuss how a budget for a manufacturing firm would differ from a merchandising firm. Discuss why a company may have desired ending inventory requirements, which two budgets this may impact, and how it impacts them. Provide an example of how an error in one budget could impact other budgets that come later.
Which of the following statements is true? Multiple Choice A flexible budget is an estimate of what revenues and costs should have been given the planned level of activity for the period. A flexible budget is a comparison of actual revenues and costs to what they should have been given the planned level of activity. A flexible budget is a comparison of actual revenues and costs at the actual level of activity to the actual revenues and costs incurred at the planned level of activity. A flexible budget is an estimate of what revenues and costs should have been given the actual level of activity for the period.
Subject - account Please help me. Thankyou.
Required: a) Using Activity Based Costing, calculate the rate for each cost driver. b) Using activity based budgeting, prepare a budgeted yearly operating statement for Aero3D Ltd. Show the following separately, within the statement. i. The budgeted output for each product per year; ii. The contribution to profits for each product and in total before charging activity based costs; iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs); iv. The total profit after charging core based costs.
Which of the following elements are used in calculating Costs in a Flexible Budget? a. Budgeted unit costs times actual quantities of output b. Actual unit costs times budgeted quantities of output c. Budgeted unit costs times budgeted quantities of output d. Actual unit costs times actual quantities of output
Q.Are these budget standards challenging for the department that produces product Z?
1. How does budgeting provide important information to managers and operating personnel? 2. Explain at least three times of budgets. 3. Explain how a flexible budget is used?
1. Explain why a company needs these budgets used in #2 of your homework and how will they help the manager prepare for the next year? For example: ordering inventory, increasing or decreasing material costs so their sales will increase and cost decrease (labor, raw materials, or costs that pertain to operations)? Make sure to explain what each budget tells the manager.
Which of the following is true? a) The direct materials purchases budget is determined from the direct labour budget. b) The only budget providing input into the revenue budget is the sales budget c) The direct materials purchases budget and the capital expenditures budget are both determined from the production budget. d) The selling and administrative expense budget is input into the forecasted cost of goods sold.
When preparing a production budget, the required production equals: 1. budgeted sales+beginning inventory+desired ending inventory 2. budgetd sales-beginning inventory+desired ending inventory 3.budgeted sales-beginning inventory+desired ending inventory 4. budgeted sales+ beginning inventory-desired ending inventory
The master budget will be different from business to business.This is due to all of the following,except: A.varying sizes and complexities of business B.retail versus service versus manufacturing businesses C.profitability of the business D.number of different products sold
Which of the following statements is true about a cash budget? Question 35 options: Cash budget provides a means of estimating how long it will take for a product to reach the break-even point and, therefore, how much money will be needed to launch a new product. Cash budget summarizes the cash flows into and out of a firm over a period of time. Cash budget focuses on the importance of maximizing a product’s per unit contribution. Cash budget helps an entrepreneur understand the concept of EBITDA break-even and how to calculate this point for each product a business’s produce.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

1.	What is the total budgeted indirect cost at the Elmore store in January 2018? What is the total budgeted cost of each activity at the Elmore store for January 2018? What is the budgeted indirect cost of each product category for January 2018?
2.	Which product category has the largest fraction of total budgeted indirect costs?
3.	Given your answer in requirement 2, what advantage does Maclin's Corner gain by using an activity-based approach to budgeting over, say, allocating indirect costs to products based on cost of goods sold?

1. What is the total budgeted indirect cost at the Elmore store in January 2018​? What is the total budgeted cost of each activity at the Elmore store for January 2018​? What is the budgeted indirect cost of each product category for January 2018​?

1. What is the total budgeted indirect cost at the Elmore store in January 2018? What is the total budgeted cost of each activity at the Elmore store for January 2018? What is the budgeted indirect cost of each product category for January 2018?