please dont provide answer in image format thank you Required 1 Required 2During the year, the company manufactured and sold 55,000 units of product. Prepare a flexible budget for this level ofoutput. (Do not round intermediate calculations.)SalesLess: Cost of goods sold:Direct materialsDirect laborManufacturing overhead:VariableFixedGross profitLess: Operating expenses:Selling expenses:Sales commissionsRentInsuranceGeneral expenses:SalariesRentDepreciationOperating incomeCRANE CORPORATIONFlexible BudgetRequired 1 Required 2SalesLess: Cost of goods sold:Direct materialsDirect laborSelling expenses:Manufacturing overhead:VariableFixedGross profitLess: Operating expenses:CRANE CORPORATIONFlexible BudgetGeneral expenses:SalariesRentNow suppose that the actual level of output was 65,100 units. Prepare a flexible budget for this output level. (Do not roundintermediate calculations.)Sales commissionsRentInsuranceDepreciationOperating income$$$$00000000 Crane Corporation's master budget for the year is shown below:Sales (60, 100 units)Cost of goods sold:Direct materialsDirect laborOverhead (variable overhead applied at 45% ofdirect labor cost)Gross profitSelling 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$ 174,290456,760241,000$ 162,27041,00031,00092,50077,50051,000$ 1,923, 200872, 050$ 1,051, 150455, 270$ 595,880Required:1. During the year, the company manufactured and sold 55,000 units of product. Prepare a flexible budget for this level of output.2. Now suppose that the actual level of output was 65,100 units. Prepare a flexible budget for this output level.

Budgeting is a process of estimation of future income and expenditure for a particular period. there…

Crane Corporation's master budget for the year is shown below: Sales (60, 100 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 $ 174,290 456,760 241,000 $ 162,270 41,000 31,000 92,500 77,500 51,000 $ 1,923, 200 872, 050 $ 1,051, 150 455, 270 $ 595,880 Required: 1. During the year, the company manufactured and sold 55,000 units of product. Prepare a flexible budget for this level of output. 2. Now suppose that the actual level of output was 65,100 units. Prepare a flexible budget for this output level.

Crane Corporation's master budget for the year is shown below: Sales (60, 100 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 $ 174,290 456,760 241,000 $ 162,270 41,000 31,000 92,500 77,500 51,000 $ 1,923, 200 872, 050 $ 1,051, 150 455, 270 $ 595,880 Required: 1. During the year, the company manufactured and sold 55,000 units of product. Prepare a flexible budget for this level of output. 2. Now suppose that the actual level of output was 65,100 units. Prepare a flexible budget for this output level.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...

See similar textbooks

Similar questions

The fixed overhead budgeted for Ranier Industries at an expected capacity of 500,000 units is 1,500,000. Variable costing is used internally, and the net income is adjusted to an absorption costing net income at year-end. Data collected over the last three years show the following: Determine the adjustment each year to convert the variable costing income to absorption costing net income. Compute the absorption costing net income for each year.
At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
Mesa Aquatics, Inc. estimated direct labor hours as 1,900 in quarter 1, 2,000 in quarter 2.2,200 in quarter 3, and 1,800 in quarter 4. a sales and administration budget using the information provided.
Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted production of 4,500 units with the following amounts: At the end of the year, Balboa had the following actual costs for production of 4,700 units: Required: 1. Calculate the budgeted amounts for each cost category listed above for the 4,500 budgeted units. 2. Prepare a performance report using a budget based on expected (budgeted) production of 4,500 units. 3. Prepare a performance report using a budget based on the actual level of production of 4,700 units.
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts: At the end of the year, Bowling had the following actual costs for production of 3,800 units: Required: 1. Calculate the budgeted amounts for each cost category listed above for the 4,000 budgeted units. 2. Prepare a performance report using a budget based on expected production of 4,000 units. 3. Prepare a performance report using a budget based on the actual level of production of 3,800 units.
Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of activity and the actual operating results listed below for the 29,000- unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 29,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Required 1 Required 2 Now suppose that the actual level of output was 65,500 units. Prepare a flexible budget fi intermediate calculations.) CRANE CORPORATION Flexible Budget Sales Less: Cost of goods sold: Direct materials Direct labor Manufacturing overhead: Variable Fixed Gross profit Less: Operating expenses: Selling expenses: Sales commissions Rent Insurance General expenses: Salaries Rent Depreciation Operating income
Which of the following would be considered a mixed cost in the Selling & Administrative Expense Budget? a. Depreciation expense determined by using the straight-line method. b. Rent Expense of $3,000 paid each month. c. Monthly payrol of $5,000 in salaries plus 10% sales commissions. d. Miscellaneous Expense estimated at 5% of monthly sales.
A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Sales revenue Commission expense (10% of sale) Salaries expense Miscellaneous expense-5% of sales Rent expense Utilities expense Insurance expense Depreciation expense Mar $120,000 12,000 33,000 6,000 3,900 2,000 2,700 4,400 OA. $53,900 OB. $50,500 OC. $45,400 OD. $56,400 Apr $80,000 8,000 33.000 4,000 3.900 2,000 2,700 4,400 May $130,000 13,000 33,000 6.500 3.900 2,000 2,700 4,400 Jun $110,000 11,000 33,000 5,500 3,900 2,000 2,700 4,400 The budget assumes that 60% of commission expenses are paid in the month they were incurred, and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month incurred and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on…
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…