I need answer of this question solution general accounting Baltimore Booms is a start-up company that makes electronic sound amplifiers.The company has budgeted variable costs of $250 for each amplifier and fixedcosts of $12,000 per month. Baltimore Blooms's static budget predictedproduction and sales of 220 amplifiers in August, but the company actuallyproduced and sold 232 amplifiers, at a total cost of $68,000.Baltimore Blooms' total flexible budget cost for the actual number of amplifiersproduced and sold is:A. $58,000B. $60,000C. $67,000D. $70,000

Step 1: Define Standard CostingStandard costing is significant in locating differences between the…

Answered: Baltimore Booms is a start-up company…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

See similar textbooks

Similar questions

Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
TIB makes custom guitars and prepared the following sales budget for the second quarter It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000. Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30. 2018.
Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
Baltimore Booms is a start-up company that makes electronic sound amplifiers. The company has budgeted variable costs of $250 for each amplifier and fixed costs of $12,000 per month. Baltimore Blooms's static budget predicted production and sales of 220 amplifiers in August, but the company actually produced and sold 232 amplifiers, at a total cost of $68,000. Baltimore Blooms' total flexible budget cost for the actual number of amplifiers produced and sold is: A. $58,000 B. $60,000 C. $67,000 D. $70,000
Cybernet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $130 for each connector and fixed costs of $5,500 per month. Cybernet’s static budget predicted production and sales of 100 connectors in August, but the company’s actually produced and sold only 70 connectors at a total cost of $20,000. Cybernet's total flexible budget cost for 70 connectors per month is
The management of Springer plc is considering next year’s production and purchase budget. One of the components produced by the company, which is incorporated into another product before being sold, has budgeted manufacturing costs as follows: $ Direct Material 14 Direct labour (4 hours at $3 per hour) 12 Variable overhead (4 hours at $2 per hour) 8 Fixed overheads (4 hours at $5 per hour) 20 Total Cost $54 per unit Trigger plc has offered to supply the above component at a guaranteed price of $50 per unit. Required: Considering cost criteria only, advise management whether the above component should be purchased from Trigger plc. Any calculation should be shown and assumptions made, or aspects which may require further investigation should be clearly stated. Explain how your advice would be affected by the following: “As a result of recent government legislation if Springer plc continues to manufacture this component, the company will incur additional inspection and…
Aspen Enterprises makes award pins for various events. Budget information regarding the current period is: A fraternity with which Aspen has a long relationship approached Aspen with a special order for 6,000 pins at a price of $2.75 per pin. Variable costs will be the same as the current production, and the special order will not impact the rest of the company’s orders. However, Aspen is operating at capacity and will incur an additional $5,000 in fixed manufacturing overhead if the order is accepted. Based on this information, what is the differential income (loss) associated with accepting the special order?
Yammy Company currently produces ultimate discs in an automated process. Expected production per month is 80,000 units. The required direct materials costs $0.20 per unit and labor costs $0.10 per unit. Manufacturing fixed overhead costs are $5,000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget total product costs for 80,000 and 40,000 units, respectively?

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS