Blossom Company expects to produce 1,200,000 units of product XX in 2022. Monthly production is expected to range from 70,000 to 100,000 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $3, direct labour $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision $1. Prepare a flexible manufacturing budget for the relevant range value using increments of 15,000 units. (List variable costs before fixed costs.) BLOSSOM COMPANY Monthly Flexible Manufacturing Budget $ $ $

Blossom Company expects to produce 1,200,000 units of product XX in 2022. Monthly production is expected to range from 70,000 to 100,000 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $3, direct labour $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision $1. Prepare a flexible manufacturing budget for the relevant range value using increments of 15,000 units. (List variable costs before fixed costs.) BLOSSOM COMPANY Monthly Flexible Manufacturing Budget $ $ $

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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L Incorporated provided the following estimated sales data in the first five months of 2021: Month Estimated Sales (units) January 15,000 February ??? March 16,000 April ??? May 18,000 The desired ending inventory of finished goods is 20% of next month’s expected sales. Budgeted production for the month of February and April are 16,600 and 18,640 respectively. Each unit costs 120 to manufacture and is sold to yield gross profit of 25% based on cost. All sales are made on account. 20% is collected in the month of sale; 30% of the balance is collected in the following month, another 40% is collected two months after the month of sale while the rest are collected three months after the month of sale. What is the budgeted sales (in pesos) for the month of February? a. 2,400,000 b. 2,512,500 c. 2,010,000 d. 2,450,500 e. Answer not among the choices
Brodrick Company expects to produce 21,700 units for the year ending December 31. A flexible budget for 21,700 units of production reflects sales of $542,500; variable costs of $65,100; and fixed costs of $143,000. If the company instead expects to produce and sell 27,300 units for the year, calculate the expected level of income from operations.
Clark Inc plans to sell 9000 lawn chairs during May, 9700 in June, and 7000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Clark produce during June? 10105 9295 Not enough information to determine 10750
Brodrick Company expects to produce 21,700 units for the year ending December 31. A flexible budget for 21,700 units of production reflects sales of $542,500; variable costs of $65,100; and fixed costs of $143,000. Assume that actual sales for the year are $639,500 (27,300 units), actual variable costs for the year are $113,800, and actual fixed costs for the year are $136,000. Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)
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Crane Company expects to produce 1,260,000 units of product XX in 2022. Monthly production is expected to range from 70,100 to 110,100 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $5, direct labour $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision $3. Prepare a flexible manufacturing budget for the relevant range value using increments of 20,000 units. (List variable costs before fixed costs.)
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The production department of Headstrong Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,100 9,100 7,100 6,100 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,950 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,490. Each unit requires 3.1 kg of raw material that costs $2.50 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter’s production needs. The desired ending inventory for the fourth quarter is 2,325 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $19.5 per hour. Required: 1-a. Prepare the company's direct…
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The budgeted variable MOH rate at Tamarisk Corp. is $5.40/machine hour, where every unit requires 3 machine hours. Additionally, the following fixed-MOH costs are anticipated for production: depreciation of $3,200, insurance of $400, supervisor salaries of $5,600, and property taxes of $1,000. Assuming budgeted production this month is 8,800 units, prepare the MOH budget for the month, reporting both total budgeted MOH costs and the cash outlay requirement for MOH. (Round variable MOH rate per machine hour to 2 decimal places, e.g. 15.25.) Budgeted Units to be Produced Total Budgeted MOH Cost Less Non-cash MOH Costs Total Budgeted Cash Needs for MOH > $ tA $ EA $ tA $ tA Month
James Corporation is using the following flexible-budget formula for annual indirect labor cost: Total cost = P12,000 + P0.75 per machine hour. For the month of June, the operating budgets are based upon 10,000 hours of planned machine time. Indirect labor costs included in this planning budget are 8,500. How to get the 8,500?