Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,300,000 Cost of Goods Sold Direct Material $800,000 $ Direct Labor 900,000 Variable Manufacturing Overhead 250,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,020,000 $ Gross Profit $1,280,000 Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 950,000 Income Before Taxes $230,000 Taxes 69,000 Net Income/Loss $161,000 $

Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,300,000 Cost of Goods Sold Direct Material $800,000 $ Direct Labor 900,000 Variable Manufacturing Overhead 250,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,020,000 $ Gross Profit $1,280,000 Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 950,000 Income Before Taxes $230,000 Taxes 69,000 Net Income/Loss $161,000 $

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

At the beginning of the period, the Cutting Department budgeted direct labor of $129,000, direct materials of $167,000 and fixed factory overhead of $11,900 for 8,000 hours of production. The department actually completed 10,500 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. a $404,119 Ob. $307,900 Oc $400,400 d. 3311,619
Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget Sales Cost of Goods Sold Direct Material Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Cost of Goods Sold Gross Profit Variable Sales and Administrative Expenses Fixed Sales and Administrative Expenses Income Before Taxes Taxes Net Income/Loss 100,000 80,000 90,000 $3,370,000 $ $900,000 $ 900,000 230,000 70,000 $2,100,000 $ $1,270,000 100,000 960,000 $210,000 $ 63,000 $147,000 $ $ $
The following data relate to a year's budgeted activity for Coronado Limited, a company that manufactures one product: Beginning inventory Production Available for sale Sales Ending inventory Units 40,480 (a) 141,680 Selling price Variable manufacturing costs Variable selling, general, and administrative expenses Fixed manufacturing costs (based on 100,000 units) Fixed selling, general, and administrative expenses (based on 100,000 units) 182,160 131,560 50,600 Break-even sales Per unit $9.00 units 2.00 3.00 Total fixed costs and expenses remain unchanged within the relevant range of 25,000 units to a total capacity of 160,000 units. 0.50 0.80 Calculate the projected annual break-even sales in units. (Round answer to O decimal places, e.g. 5,275.)
At the beginning of the period, the Cutting Department budgeted direct labor of $138,000, direct materials of $154,000 and fixed factory overhead of $14,000 for 7,300 hours of production. The department actually completed 11,700 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? Round your final answer to the nearest dollar. Do not round interim calculations. a. $490,438 b. $482,000 c. $306,000 d. $314,438
The following data have been extracted from the budgets of Kelvin Ltd,a company that manufacture and sells a single product $per unit Selling price Direct material cost Direct wages Variable overhead Fixed overhead 45 10 4 2.50 1.50 Fixed production overhead costs are budgeted at $400,000 per annum. Normal production levels are expected to be 200,000 units per annum. Actual Fixed Production overheads are $120,000 Budgeted administration costs are $120,000 per annum. The following pattern of sales and production is expected during 2003: Sales (units) Production (units) 60,000 70,000 You are required a. To prepare budgeted profit statements for the year using (i) (ii) Marginal Costing Absorption Costing b. To reconcile the profits for the year
Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,570,000 $ Cost of Goods Sold Direct Material $900,000 $ $ Direct Labor 1,100,000 Variable Manufacturing Overhead 240,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,310,000 $ $4 Gross Profit $1,260,000 $4 Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 940,000 Income Before Taxes $220,000 Taxes 66,000 Net Income/Lss $154,000 $
The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000. Required: Prepare a flexible budget for Western.
Please help me with show all calculation and do not provide in Excel work please...
None
Your managerial accountant provided you with information comparing the actual results to the budgeted amounts for the period: Static Flexible Actual Quantity 3,200 DL hours 2,900 hours 2,900 hours Price $15 per hour $15 per hour $18 per hour Total Costs $48,000 $43,500 $52,200 Based on the information provided, select all of the true statements from the following options: Your managerial accountant provided you with information comparing the actual results to the budgeted amounts for the period: Static Flexible Actual Quantity 3,200 DL hours 2,900 hours 2,900 hours Price $15 per hour $15 per hour $18 per hour Total Costs $48,000 $43,500 $52,200 Based on the information provided, select all of the true statements from the following options: The price variance is $8,700, favorable The price variance is $8,700, unfavorable The total budget variance is $42,000, favorable The price variance is $3.00, favorable The…
Rockets and More Ltd. Is concerned about the uncertain nature of its market for the upcoming year and has prepared budgeted results on 90%, 100% and 105% activity as follows: Output Revenue Less: Materials 337,500 Labour Costs 440,000 Production overhead costs 217,500 Administrative Costs 120,000 Selling and distribution cost 70,000 1,185,000 Revenue Less: Expenses Materials costs Labour costs Prod. Overhead costs Administration costs Selling and distribution costs Net profit 90% 45,000 Required: A. $ 1,350,000 Net Profit 165,000 200,000 Only 37,500 units have been sold with the following results: S B. 100% 50,000 S 1,500,000 375,000 485,000 235,000 130,000 75,000 1,300,000 311,750 351,500 171,250 117,500 66,500 105% 52, 500 $ 1,575,000 393,750 507,500 243,750 135,000 77,500 1,357,500 217,500 $ 1,075,000 1,018,500 56,500 i. The budgeted selling price is $30 per unit ii. All production is sold iii. The fixed element of the budgeted costs will remain unchanged at all levels of production…
Prepare a flexible budget for Western.