EX 22-15 Factory overhead cost budgetSweet Tooth Candy Company budgeted the following costs for anticipated productionfor August:OBJ. 4blenead00Advertising expenses$232,000Production supervisor wages$135,000Manufacturing supplies14,000Production control wages32,000Power and light48,000Executive officer salaries310,000elSales commissions298,000Materials management wages39,000Factory insurance30,000Factory depreciation22,000Prepare a factory overhead cost budget, separating variable and fixed costs. Assume thatfactory insurance and depreciation are the only fixed factory costs.

Budgeting is a process to prepare the financial statement by the manager to estimate the…

Answered: EX 22-15 Factory overhead cost budget…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question 5 Emma Co manufactures electric motors. The company expects to sell 440 units in June and 585 units in July. Beginning and ending finished goods for June is expected to be 40 and 95 units, respectively. July's ending finished goods is expected to be 125 units. The company's variable manufacturing overhead is $4 per unit produced and its fixed manufacturing overhead is $6220 per month. Emma's manufacturing overhead budget for July $ tiap. 5.0
Cost of Goods Sold Budget Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 17,600 barrels of oil for purchase in June for $70 per barrel. Direct labor budgeted in the chemical process was $147,800 for June. Factory overhead was budgeted at $221,800 during June. The inventories on June 1 were estimated to be: Oil $10,300 P1 6,900 P2 5,900 Work in process 8,600 The desired inventories on June 30 were: Oil $11,400 P1 6,400 P2 5,600 Work in process 8,900 Use the preceding information to prepare a cost of goods sold budget for June. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Delaware Chemical Company Cost of Goods Sold Budget For the Month Ending June 30 Direct materials:
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EXERCISES Exercise 1 Jenner Company developed its annual manufacturing overhead budget for its master budget for 2008 as follows: Expected annual operating capacity Variable overhead costs 120,000 Direct Labor Hours Indirect labon Indirect materials $420,000 90,000 30,000 _540,000 Factory supplies Total variable Fixed overhead costs Depreciation Supervision Property taxes Total fixed 180,000 120,000 96,000 396,000 $936,000 Total costs The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours . Instructions Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours. Exercise 2 Fagan Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials Maintenance Utilities 2.50 50 30 Fixed overhead costs per month are: Supervision Insurance $600 200 Property taxes Depreciation 300 900 The…
Exercise 4-31 The Charito Company is planning an overhead budget cost budget for the next month, July, 2021. Past cost studies indicate that costs have followed behavior patterns as given below: Variable Rate Per Hour Indirect materials PO.90 Heat, light & power 1.20 Repairs & maintenance Lubrication 4.60 0.50 In addition, management has estimated fixed factory overhead as follows: Supervision P44,000 36,000 14,500 Indirect labor Heat, light & power 17,200 Repairs & maintenance Taxes & insurance 9,000 Total P129,000 During the next month, the company plans to manufacture 150,000 units of product. Products are produced at the rate of 6 units per hour. Normal plant capacity is 30,000 hours. REQUIRED: 1. Prepare the factory overhead budget for July, 2021. 2. Determine the unused normal capacity, if any.
Foundational 15 Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,400, 10,000,12,000, and 13,000 units, respectively. All sales are on credit. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. The variable selling and administrative expense per unit sold is $1.80.…
EX 22-2 Flexible budget for selling and administrative expenses Obj. 2, 4 for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense. Miscellaneous administrative expense Office salaries expense Customer support expenses. Research and development expense. 8 % 6 of sales 15% of sales $10,000 per month plus 4% of sales $ 50,000 per month $20,000 per month plus 30% of sales $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000.
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Exercise 15-10 (Static) Flexible budgeting LO 3 Western Manufacturing produces a single product. The original budget for April was based on expected production of 17,500 units; actual production for April was 16,600 units. The original budget and actual costs incurred for the manufacturing department follow: Direct materials Direct labor Variable overhead Fixed overhead Total Item Direct materials Direct labor Variable overhead Fixed overhead Total Original Budget $275,625 213,500 107,625 85,000 $681,750 Actual Costs $270,750 206,750 97,625 Required: Prepare an appropriate performance report for the manufacturing department. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) $ 86, 250 $661, 375 Original Budget Flexed Budget (17,500 units) (16,600 units) $ 275,625 213,500 107,625 85,000 681,750 Actual Cost $ 270,750 206,75 97,625 86,250 $ 661,375 Variance

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