Annie's Homemade is preparing a planning budget for August. Its budgeted revenue per serving is $5.00. It has identified two cost drivers-number of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee labor-hours in August. Data concerning the company's cost formulas are shown below: Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees Utilities expense $300 Rent expense $3,000 Equipment depreciation expense $1,750 Other expenses $4,200 Required: Prepare a planning budget for August. Budgeted servings Budgeted labor-hours Revenue Expenses: Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees Utilities expense Rent expense Fixed Cost Cost per Cost per Per Month Labor-Hour $ 7,000 $ 8.00 Equipment depreciation expense Other expenses Total expense Net operating income $ Serving $ 1.25 $ 0.25 $ 0.09 $ 0.02 0 0

Annie's Homemade is preparing a planning budget for August. Its budgeted revenue per serving is $5.00. It has identified two cost drivers-number of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee labor-hours in August. Data concerning the company's cost formulas are shown below: Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees Utilities expense $300 Rent expense $3,000 Equipment depreciation expense $1,750 Other expenses $4,200 Required: Prepare a planning budget for August. Budgeted servings Budgeted labor-hours Revenue Expenses: Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees Utilities expense Rent expense Fixed Cost Cost per Cost per Per Month Labor-Hour $ 7,000 $ 8.00 Equipment depreciation expense Other expenses Total expense Net operating income $ Serving $ 1.25 $ 0.25 $ 0.09 $ 0.02 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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