Crane Company has accumulated the following budget data for the year 2022.1.Sales: 31,100 units, unit selling price $85.2.Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $12 per hour, andmanufacturing overhead $6 per direct labor hour.3.Inventories (raw materials only): beginning, 10,100 pounds; ending, 15,100 pounds.4.Selling and administrative expenses: $170,000; interest expense: $30,000.5.Income taxes: 20% of income before income taxes. Your answer is partially correct.Prepare a budgeted multiple-step income statement for 2022.SalesFULTZ COMPANYBudgeted Income StatementFor the Year Ending December 31, 2022Cost of Goods SoldOperating Expenses1000000600000150000Total Operating Expenses100000Income from OperationsInterest ExpenseIncome before Income TaxesIncome Tax ExpenseNet Income/(Loss)1A25000015000030000120000

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Answered: Crane Company has accumulated the…

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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Monty Company uses a flexible budget for manufacturing overhead based on direct labor hours Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities Budgeted fixed overhead costs per month are Supervision $3,920, Depreciation $1,176, and Property Taxes $784. The company believes it will normally operate in a range of 6,860-9,800 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 980 direct labor hours. (List variable costs before fixed costs) Activity Level Activity Level Variable Costs Indirect Labor Indirect Materials Utilities Fised Costs Total Variable Costs V Supervision Depreciation Property Taxes $1.50 1.10 0.80 Total Fled Cods Total Costs V Save for Later Y V V eTextbook and Media MONTY COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2022 DOOD Attempts: 1 of 5 used Submit Antwer
You are provided with the following information for Keon Company, You are asked to assist In the budget-setting process. Production budget for January, February and March 2,000 units per month Production budget for April, May and June (and July) 1,800 units per month Production standard-direct material 4.5 kilograms per unit Direct material inventory standard-percentage of closing inventory to next month's production DM required for current month per kilogram 70% Direct material standard cost $25.00 Direct material purchase paid in month of purchase 40% of total purchase amount Direct material purchase paid in following month 60% of total purchase amount Direct material purchases in December 8,000 kilograms Expected 31 December inventory 10,000 kilograms (a) Prepare the direct materials purchase budget in kilograms of material for January to June for Keon Company. Ignore non-round amounts and simply show the nearest whole number for all values.
Use the following information for the Problems below. (Algo) Skip to question [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,500 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales $ 3,100,000 Costs Direct materials 992,000 Direct labor 232,500 Sales staff commissions 62,000 Depreciation—Machinery 295,000 Supervisory salaries 198,000 Shipping 217,000 Sales staff salaries (fixed annual amount) 251,000 Administrative salaries 498,500 Depreciation—Office equipment 199,000 Income $ 155,000 Problem 23-2A (Algo) Preparing a flexible budget performance report LO P1 Phoenix Company reports the following actual results. Actual sales were 18,500 units. Sales (18,500 units) $ 3,746,250 Costs Direct materials $ 1,198,800 Direct labor 284,900 Sales staff commissions 64,750…
Target Corporation had the following budgeted sales: 2024 June July August September October Units 2,200 2,500 2,000 1,700 1,600 The following additional information was given: Ending Finished Goods Inventory on May 31, 2024 was: Direct Materials per Finished Good Unit: Average Cost per Pound of Direct Material: Finished Goods Inventory should be: Direcet Materials inventory should be: Ending Direct Materials Inventory on May 31, 2024 was: 2,100 Units 3 Pounds of Direct Material $5 per Pound 20% Next Month's Anticipated Sales 30% Pounds Needed for Next Month's Production 9,090 Pounds of Direct Material Calculate the amount of required production of finished goods units for the month of August 2024. Round to the nearest whole number (ex. 2004-200: 200.5-201) Only enter numbers into answer space, do not enter anything other than numbers.
Sheridan Company has accumulated the following budget data for the year 2022. 1. 2. 3. 4. 5. Sales: 31,220 units, unit selling price $86. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $8 per direct labor hour. Inventories (raw materials only): beginning, 10.120 pounds; ending. 15.390 pounds. Selling and administrative expenses: $170.000; interest expense: $30,000. Income taxes: 20% of income before income taxes.
Walkenhorst Company's machining department prepared its 2022 budget based on the following data: Practical capacity 40,000 units 2 Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead $ 3.00 per machine hour $ 336,000 The department uses machine hours to apply factory overhead to production. In 2022, the department used 86,800 machine hours and incurred $602,000 in total manufacturing overhead cost to manufacture 42,170 units. Actual fixed overhead cost for the year was $351,000. Required: Determine for the year: 1. The fixed, variable, and total factory overhead application rates (per machine hour). (Round your answers to 2 decimal places.) 2. The total flexible budget, for factory overhead cost based on output achieved in 2022. 3. The production volume variance. State whether this variance was favorable (F) or unfavorable (U). 4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U). 5. The…
Sunland Company has accumulated the following budget data for the year 2027. 1. 2. 3. 4. 5. Sales: 31,450 units, unit selling price $85. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $6 per direct labor hour. Inventories (raw materials only): beginning, 10,290 pounds; ending, 15,250 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000. Income taxes: 20% of income before income taxes.
Fairfield Company management has budgeted the following amounts for its next fiscal year: Selling price per unit Variable expenses per unit Total fixed expenses $40.00 per unit $25.00 per unit $832,500 19. Fairfield Company's goal for the month is to earn a target operating income of $285,000. How many units must be sold to achieve this goal? (A)54,000 units (B) 55,500 units (C) 74,500 units (D) 33,300 units (2 marks) If Fairfield can reduce fixed expenses by $41,625, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? 20. (A) (B) $0.75 $2.78 (C) $0.53 (D) $0.25 (3 marks)
Rose Company uses a flexible budget for manufacturing overhead based on direct labor hours. The following information are from the yearly static overhead budget for the Production Department for 2023. It is based on 300,000 direct labor hours. Variable Costs Fixed Costs Indirect labor ($1.2 per DL hour) $30,000 Supervision $ 5,000 Supplies and lubricants ($0.5 per DL hour) 12,500 Depreciation 2,000 Maintenance ($0,7 per DL hour) 17,500 Property taxes 1,500 Utilities ($0,4 per DL hour) 10,000 Insurance 1,000 During July, 24,500 direct labor hours were worked. The company incurred the following variable costs in July: indirect labor $30,200, supplies and lubricants $11,600, maintenance $17,500, and utilities $9,200. Actual fixed overhead costs were the same as monthly budgeted fixed costs. a.) Prepare a flexible monthly budget for the Production Department for the relevant range between 24,000 and 26,000 DL hours with increments of 1000 DL hours. b.) Prepare a flexible budget…
The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 11 Sales volume (units) 90,000 Costs: Materials (E) 52.500 Labour (E) 33,800 Energy (E) 25,000 Depreciation (£) 105,000 The budget has been prepared using the following assumptions:, Materials costs are variable. Labour costs are semi-variable with a fixed element of E15.000 Depreciation is a fixed cost. An allowance for an energy price increase of 13% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by 7% The sales volume will increase by 6% The rise in the energy prices should be revised to 6% What will be the company's new energy cost for the year?
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Required information [The following information applies to the questions displayed below] Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Sales Cost of goods sold Direct materials Direct labor PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Machinery repairs (variable cost) Depreciation Plant equipment (straight-line) Utilities ($30, 000 is variable) Plant management salaries Gross profit $3,150,000 $ 915,000 225,000 45,000 300,000 195,000 200,000 1,880,000 1,270,000 Selling expenses 75,000 Shipping 90,000 Sales salary (fixed annual amount) 236,000 400,000 General and administrative expenses Advertising expense 150,000 Salaries 241,000 Entertainment expense Income from operations 75,000 466,000 $ 404, 000 Packaging 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that…

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