Crane Company has accumulated the following budget data for the year 2022. 1. Sales: 37,800 units, unit selling price $85. 2. Cost of one unit of finished goods: direct materials 2 pound at $7 per pound, direct labor 3 hours at $15 per hour, manufacturing overhead $5 per direct labor hour. 3. Inventories (raw materials only): beginning. 12,600 pounds; ending, 18,900 pounds. Selling and administrative expenses: $214,200; interest expense: $37,800. 5. Income taxes: 20% of income before income taxes. (a) Prepare a schedule showing the computation of cost of goods sold for 2022. 4.

Crane Company has accumulated the following budget data for the year 2022. 1. Sales: 37,800 units, unit selling price $85. 2. Cost of one unit of finished goods: direct materials 2 pound at $7 per pound, direct labor 3 hours at $15 per hour, manufacturing overhead $5 per direct labor hour. 3. Inventories (raw materials only): beginning. 12,600 pounds; ending, 18,900 pounds. Selling and administrative expenses: $214,200; interest expense: $37,800. 5. Income taxes: 20% of income before income taxes. (a) Prepare a schedule showing the computation of cost of goods sold for 2022. 4.

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

Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 643,000 units, estimated beginning inventory is 101,000 units, and desired ending inventory is 88,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ Material B 1.00 lb. per unit @ Material C 1.20 lb. per unit @ $0.64 per pound $2.47 per pound $0.94 per pound The dollar amount of material A used in production during the year is Oa. $205,760 Ob. $1,556,100 Oc. $710,640 Od. $201,600
Tempo Company's fixed budget (based on sales of 16,000 units) follows. Sales (16,000 units Costs Direct materials Direct labor Indirect materials Supervisor salary Fixed Budget $216 per unit) 3,456,000 368,000 704,000 432,000 168,000 Sales commissions 112,000 Shipping 240,000 Administrative salaries 218,000 Depreciation-Office equipment 188,000 Insurance 158,000 Office rent 168,000 700,000 Income 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. TEMPO COMPANY Flexible Budget Variable Amount per Unit Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of 14,000 of 18,000 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Fixed costs 0.00 이 0 $ 0 S 0 S 0
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)
RTI Company's master budget calls for production and sale of 18,900 units for $98,280, variable costs of $43,470, and fixed costs of $18,400. During the most recent period, the company incurred $32,900 of variable costs to produce and sell 18,400 units for $85,900. During this same period, the company earned $25,900 of operating income. Required: 1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) a. Flexible budget operating income. b. Flexible budget variance, in terms of contribution margin. Was this variance favorable or unfavorable? c. Flexible budget variance, in terms of operating income. Was this variance favorable or unfavorable? d. Sales volume variance, in terms of contribution margin. Was this variance favorable or unfavorable? e. Sales volume variance, in terms of operating income. Was this variance favorable or unfavorable? a. Flexible budget operating income b. Flexible budget variance…
Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $177,430 budgeted expenses include $123,670 in variable expenses for desks and $18,760 in variable expenses for chairs, as well as $35,000 of fixed expenses. Actual fixed expenses total $36,900. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Fixed expenses Income 149 67 Actual Results 34,170 177,430 155 75 $ 201,150 $ 207,700 39,375 186,840 $ 57,890 $ 60,235 Variances Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) $ 6,550 F 5,205 F 9,410 U $ 2,345 F BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance…
In Ayayai Company, direct labor is $20 per hour. The company expects to operate at 12,400 direct labor hours each month. In January 2027, direct labor totaling $255,440 is incurred in working 12,896 hours. (a) Your answer is correct. Prepare a static budget report. Product Line Direct Labor CA $ Budget 248,000 +A $ AYAYAI COMPANY Static Direct Labor Budget Report For the Month Ended January 31, 2027 Actual 255,440 +A Difference 7,440 i Unfavorable
Ivanhoe Manufacturing Co.'s static budget at 13,500 units of production includes $87,750 for direct labor and S20,250 for direct materials. Total fixed costs are $49,500. Determine the total costs on Ivanhoe's flexible budget for 2022 if 19,500 units are produced and sold. Total Cost Senter the total cost in dollars
Required information 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 15,300 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales $ 3,213,000 Costs Direct materials 1,009,800 Direct labor 244,800 Sales staff commissions 61,200 Depreciation—Machinery 300,000 Supervisory salaries 197,000 Shipping 229,500 Sales staff salaries (fixed annual amount) 245,000 Administrative salaries 534,920 Depreciation—Office equipment 198,000 Income $ 192,780 Problem 21-1A (Algo) Preparing and analyzing a flexible budget LO P1 Required:1&2. Prepare flexible budgets at sales volumes of 14,300 and 16,300 units.3. The company’s business conditions are improving. One possible result is a sales volume of 18,300 units. Prepare a simple budgeted…
Sheridan Company has invested 3,420,000 in assets to produce 11,400 units of its finished product. Sheridan's budget for the year is as follows: net income 478,000; variable costs, 2,736,000; fixed costs, 456,000 Compute each of the following: (Round answers to 1 decimal place, e.g. 15.2%.) 1. Budgeted ROI ____% 2. Markup percentage using the total cost approach %
Sheridan Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022. Estimated unit sales Unit selling price Direct labor hours per unit Direct labor cost per hour January 10,560 (a) $60 2.0 $6.0 Your Answer Correct Answer February March April 12,320 9,680 $57.5 $57.5 2.0 $6.0 11,440 $57.5 1.5 1.5 May 9,680 $57.5 1.5 Sheridan has a labor contract that calls for a wage increase to $7.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. $6.0 $7.0 $7.0 Sheridan expects to begin the year with 15,488 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales.