Consider the following budgeted figures: Sales £450,000 Opening inventory £20,000 Closing inventory £30,000 Raw materials £120,000 Direct labour £130,000 Production overhead £120,000 Administration £45,000 What is the budgeted operating profit for the period?
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Consider the following budgeted figures:
Sales £450,000
Opening inventory £20,000
Closing inventory £30,000
Raw materials £120,000
Direct labour £130,000
Production
Administration £45,000
What is the budgeted operating profit for the period?
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- The company expects cash collections during the year of P250,000. In addition, it expects P25,000 in depreciation, P35,000 cash to be paid for direct labor, P2,000 to be paid for supplies and P55,000 to be paid for raw materials. What is the budgeted net increase in cash for the year?The following sales were budgeted for the year: Product A Product B Product C Demand (units) 1,000 2,000 3,000 Selling price $15 $20 $30 Profit per unit $2 $5 $2 Actual sales for the year showed the following results: Product A Product B Product C Units sold 1,100 2,050 2,800 Sales value $17,050 $38,950 $86,800 Profit $3,080 $10,455 $6,160 What is the sales mix variance? $2,292 Adverse $1,845 Favorable $200 Favorable $50 FavorableApparelle Co. developed the following equation to predict certain components of its budget for the coming period: Costs = $50,000 + ($5 x direct labor hours) The $5 would approximate:a. total costb. direct labor rate per hourc. fixed cost per direct labor hourd. variable costs per direct labor hour
- Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $12 Variable selling and administrative expenses per unit $1.10 Fixed selling and administrative expenses $423,000 Tax rate 28 % Required: Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar. Oliver Company Budgeted Income Statement For the Coming Year Sales v Cost of goods sold v Gross margin Less: Variable selling and administrative expenses Less: Fixed selling and administrative expenses Operating income Less: Income taxes Net income v 24K2 Inc. have the following budgeted business transactions for the month of May: Insurance refund to be received £500 Payments to be made to materials suppliers Payments to be made to employees Cash expected from customers £15,000 £4,000 £25,000 Budgeted depreciation charges £800 Interest to be paid to the bank £40 Budgeted personal drawings £2,000 K2 Inc. are budgeting an overdraft at the bank of £4,000 on the 1st May. What is K2 Inc.'s budgeted cash position at the end of May? O £460 cash in the bank O £460 overdrawn O £340 cash in the bank O £340 overdrawnThe master budget of Vaughn Manufacturing shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor Machine supplies Indirect materials Depreciation on factory building Total manufacturing overhead $810000 O $1666000. O$1514000. O $1704000. O $1420000. 190000 230000 190000 $1420000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of
- 20. Barzal plc. has the following budgeted cost information for two different production volume quantities: Total cost Production Volume £220,000 8,000 units £560,000 24,000 units What would the budgeted total cost be if budgeted production volume was 22,000 units? a) £517,500 b) £467,500 c) £340,000 d) £602,500Print Item The Operating Budgets: Marketing and Administrative Expense Budgets The marketing expense budget can be prepared in much the same way as the overhead budget. That is, variable expenses and fixed expenses are budgeted and then totaled. Suppose that a company has variable marketing expense consisting of a sales commission equal to 5% of sales revenue. Sales revenue for the first three months of the quarter equals $560,000, $580,000, and $600,000. Fixed marketing expense consists of the following monthly costs: depreciation $3,500, salaries $12,000, and advertising $5,000. Prepare a marketing expense budget for the first quarter, by month and in total. Budgeted sales revenue x Sales commission rate Budgeted variable marketing expense $ Fixed marketing expense: Depreciation Salaries January 560,000 5 X 28,000 3,500 12,000 5,000 February 580,000 20,500 48,500 ✔ 5.2 X 29,000 3,500 12,000 5,000 20,500 49,500 $ $ March 600,000 5.3 X 30,000 3,500 12,000 5,000 20,500 50,500 Total…Crane Corporation's master budget for the year is shown below: Sales (60,700 units) Cost of goods sold: Direct materials Direct labor Overhead (variable overhead applied at 45% of direct labor cost) Gross profit Selling expenses: Sales commissions (all variable) Rent (all fixed) Insurance (all short-term fixed) General expenses: Salaries (all short-term fixed) Rent (all short-term fixed) Depreciation (all short-term fixed) Operating income $ 212,450 497,740 247,000 Required 1 $ 160,248 47,000 37,000 Required 2 95,500 80,500 57,000 $ 2,306,600 957,190 $ 1,349,410 Required: 1. During the year, the company manufactured and sold 55,700 units of product. Prepare a flexible budget for this level of output. 2. Now suppose that the actual level of output was 65,700 units. Prepare a flexible budget for this output level. 477, 248 $ 872,162 Complete this question by entering your answers in the tabs below. During the year, the company manufactured and sold 55,700 units of product. Prepare a…
- During the current year, Cullumber Corporation expects to produce 10,000 units and has budgeted the following: net income $350,000; variable costs $1,290,000; and fixed costs $110,000. It has invested assets of $1,650,000. What was the company's budgeted ROI? What was its budgeted markup percentage using a total cost approach? Budgeted ROI per unit Budgeted markup percentage $ %The following are the budgeted and actual income statements for Tucan Ltd, a manufacturing business, for the month of January: Budget Output (production and sales) Sales revenue Raw materials Labour Fixed overheads Operating profit Output (production and sales) Sales revenue Raw materials Labour Fixed overheads 5,000 units Flexed budget £ 500,000 200,000 150,000 70,000 80,000 £ units Actual 6,000 units £ 630,000 270,000 150,000 78,000 132,000 CAs a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you've been asked to do some what-if analyses. Following is the budgeted Information regarding the coming year: Selling price per unit Variable cost per unit Fixed costs (per year) Required: $ 100.00 60.00 1,113,040 1. What is the breakeven volume, in units and dollars, for the coming year? 2. Assume that the goal of the company is to earn a pretax (operating) profit of $316,000 for the coming year. How many units would the company have to sell to achieve this goal? 3. Assume that of the $60 variable cost per unit the labor-cost component is $27. Current negotiations with the employees of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effect on the breakeven point in units if selling price and fixed costs are as planned, but the labor cost for the coming year is…