Crane Corporation's master budget for the year is shown below:Sales (60,700 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$ 212,450497,740247,000Required 1$ 160,24847,00037,000Required 295,50080,50057,000$ 2,306,600957,190$ 1,349,410Required: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$ 872,162Complete 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 flexible budget for this level ofoutput. (Do not round intermediate calculations.)

The term "flexible budget" refers to a budget that may be changed or amended depending on the…

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 $ 160,248 47,000 37,000 95,500 80,500 57,000 $ 2,306,600 957,190 $ 1,349,410 477,248 $ 872,162 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.

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 $ 160,248 47,000 37,000 95,500 80,500 57,000 $ 2,306,600 957,190 $ 1,349,410 477,248 $ 872,162 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.

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

Domestic
The following data were gathered from the Pal Company's overhead costs for the January, 2020 production activity: Actual total overhead incurred - P112,500Budgeted fixed overhead - P40,500Standard direct-labor hours allowed for actual production - 15,000Standard fixed overhead rate per direct-labor hour - P2.25Standard variable overhead rate per direct-labor hour - P3.25 Pal Company has been maintaining a standard absorption and flexible budgeting system. It also uses the two-variance method (two-way) for overhead variances. What is Pal's volume (denominator) variance for January, 2020? P6,750F P8,250F P6,750U P8,250U
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?
The following information is available for Pioneer Company: • Sales price per unit is $110. • November and December sales were budgeted at 3,040 and 3,560 units, respectively. • Variable costs are 13 percent of sales (5 percent commission, 2 percent advertising, 6 percent shipping). • Fixed costs per month are sales salaries, $6,000; office salaries, $3,000; depreciation, $2,300; building rent, $3,100; insurance, $1,600; and utilities, $700. Required: Determine Pioneer's budgeted selling and administrative expenses for November and December. Total Budgeted Selling and Administrative Expenses November December
A company manufactures and sells a single product. The following data have been extracted from the current year’s budget. Sales and production (units) 5,000 Variable cost per unit $50 Fixed cost per unit $70 C/S (contribution/sales) ratio 75% The selling price per unit for next year is budgeted to increase by 8%, whereas both the variable cost per unit and the total fixed costs are expected to increase by 12%. Calculate the number of units that should be produced and sold next year in order to achieve the same profit as in the current year.
Accounting This is the budget for the year ended 30 April 2021 for company XTZ Total production & sales = 2400units Selling price per unit = $1200 Variable manufacturing costs : Direct labour = $192 ; Direct material = $288 ; Overheads = $96 Fixed manufacture overheads = $216,960 Other : Fixed marketing & admin cost = $144,000 Sales commission = 5% 1) Calculate the total marginal income and net profit & loss if all units are sold 2) Use the marginal income ratio to work out the break even value 3) Calc the new total marginal income & net profit &loss if an increase of $50,000 in advertising costs increases sales by 200units 4) If the company earns a net profit of $298,920 ; How many units were sold 5) If expected sales volume is 2400units, what is the sales price per unit which will allow the company to break even?
The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours. The February direct labor budget indicates that 5 direct labor-hours will be required in that month. The variable overhead rate is $4.7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $82,610 per month, which includes depreciation of $17,070. All other fixed manufacturing overhead costs represent current cash flows. Required: 1. Determine the cash disbursements for manufacturing overhead for February 2. Determine the predetermined overhead rate for February. Note: Round your answer to 2 decimal places. 1. Cash disbursements for manufacturing overhead 2. Predetermined overhead rate
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target income of $130,000. Sales (50,000 units) $1,000,000 Costs: Direct materials $ 270,000 Direct labor 240,000 Fixed factory overhead 100,000 Variable factory overhead 150,000 Fixed marketing costs 110,000 Variable marketing costs 50,000 Income 920,000 $ 80,000 O a. 53,165. O b. 81,250. Oc 36,207. O d. 50,000. Oe. 58,621.
Assume a company's sales budget for July estimates 17,000 units sold. The variable selling and administrative expense used for budgeting purposes is $4.00 per unit sold. The total budgeted cash disbursements for selling and administrative expenses in July is $139,000. The total fixed selling and administrative expenses included in the selling and administrative expense budget for July is $100,000. What is the amount of depreciation included in the selling and administrative expense budget for July? Multiple Choice O OOO $14,000 $32,000 $29,000 $47,000
The following information is from the manufacturing budget and budgeted financial statements of Altman Corporation: Direct materials inventory, 1/1 $ 90,000 Direct materials inventory, 12/31 $ 106,000 Direct materials budgeted for use during year Accounts payable to suppliers, 1/1. $ 348,000- $ 58,000 Accounts payable to suppliers, 12/311 $ 68,000 For the year, budgeted purchases of direct materials amounted to: Multiple Choice
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 C
Sunland Company has accumulated the following budget data for the year 2022: 1. 2. 3. 4. 5. 6. Sales: 29,200 units; unit selling price $82 Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram; direct labour, 3 hours at $13 per hour; and manufacturing overhead, $5 per direct labour hour Inventories (raw materials only): beginning, 9,900 kg; ending, 15,700 kg Raw materials cost: $5 per kilogram Selling and administrative expenses: $219,000 Income taxes: 30% of income before income taxes Prepare a schedule showing the calculation of the cost of goods sold for 2022. SUNLAND COMPANY Computation of Cost of Goods Sold For the Year Ending December 31, 2022 Cost of goods sold Manufacturing overhead Beginning inventory Direct materials Ending inventory Number of units sold Selling and administrative expenses Direct labour Cost of one unit of finished goods eTextbook and Media $ $ $