Arden Ltd tentative budget for product TYL for 2019 is shown below:Sales (2500 units at £40 a unitManufacturing cost of goods sold100,000Direct labour15,000Direct materials14,000Variable factors overhead10,000Fixed factors overheard500044,000Gross profit56,000Selling expressVariable6000Fixed10,000Administrative expensesVariable5,000Fixed10,00031,000Operating income25,0000Required:(a). How many units of product TYL would have to be sold to break-even.](b). What would be operating income if projected sales increased by 30%.

(a) Break-even point (units): \[ \text{Break-even point (units)} = \frac{\text{Fixed…

Answered: Arden Ltd tentative budget for product…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 7CE: Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced...

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Similar questions

Recent IT costs incurred each month at the head office of Dawn Ltd are detailed below. Apply the high/low method to establish how the cost behave and then select the correct prediction of cost for a month in which 770 client projects will be completed by the company month Number of clients project IT cost (£) 1 730 £116150 2 800 £123000 3 625 £112500 4 790 £120980 a. £94,200 b. £121,200 c. £122,000 d. £119,780
Marigold provided the following information from its accounting records for 2022: Expected production Actual production Budgeted overhead Actual overhead 33200 labour hours 31200 labour hours $1660000 $1610000 How much is the overhead application rate if Marigold bases the rate on direct labour hours? O $51.60 per direct labour hour O $48.49 per direct labour hour O $50.00 per direct labour hour O $53.21 per direct labour hour
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The following data get out from Samsung industrial company: Direct materials costs JD 75 Direct manufacturing labor costs 20 Variable manufacturing overhead costs 15 Fixed overhead costs 28 Each TV need to 0.75 hour, and each hour by JD 31.5. The number of units manufactured is the cost driver for direct materials, direct manufacturing labor, and variable manufacturing overhead. The relevant range for the cost driver is from 0 to 6,000 TV. Budgeted and actual data for November 2019 are: Budgeted fixed costs for production JD 141, 750 Budgeted selling price JD 138 per unit Actual selling price 152.75 per unit Revenue at budgeted…
Subject: acounting
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For the last quarter of 2020, Carica’s cost records indicate the following: Materials Requisitions (MR) Utility Services (US) Machining Assembly Total Budgeted overhead costs before any inter- department cost allocations $200,000 $1,000,000 $5,456,000 $7,458,000 $14,114,000 Support work supplied by MR (Number of requisitions) 0 25% 40% 35% 100% Support work supplied by US (Power costs) 10% 0 30% 60% 100% Questions: 1. Allocate the two support departments’ costs to the two operating departments using the following methods: a.Direct method. b. Step-down method (allocate MR first). c. Step-down method (allocate US first) d. The Algebraic. Answer quickly

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