b. Prepare a production budget.SONIC INC.Production BudgetFor the Month Ending June 30Expected units to be soldPlus desired inventory, June 30Total units requiredLess estimated inventory, June 1Total units to be producedUnits Model Rumble Units Model Thunder EX.22-06 Sales and Production BudgetsSonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the followingproduction and sales data for June, prepare (a) a sales budget and (b) a production budget.Estimated inventory (units), June 1Desired inventory (units), June 30Expected sales volume (units):East RegionWest RegionUnit sales priceRumble2623012,7005,900$140Thunder66572,4005,150$205

a. Preparation of the sales budget is follows.ParticularsRumbleThunderEast Region (a)27002400West…

Answered: EX.22-06 Sales and Production Budgets

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

4G 4G 13:50 - O ë A e 10 a 00:35:13 Remaining True or False Static budget reflects the plan or estimates made reflecting the actual activity level. True False 2 of 13
A9
Question 14 Flint Company uses budgets in controlling costs. The August 2017 budget report for the company’s Assembling Department is as follows. FLINT COMPANYBudget ReportAssembling DepartmentFor the Month Ended August 31, 2017 Difference Manufacturing Costs Budget Actual FavorableUnfavorable Variable costs Direct materials $48,380 $47,280 $1,100 Favorable Direct labor 57,820 54,520 3,300 Favorable Indirect materials 25,960 26,060 100 Unfavorable Indirect labor 21,240 20,790 450 Favorable Utilities 20,650 20,510 140 Favorable Maintenance 7,080 7,190 110 Unfavorable Total variable 181,130 176,350 4,780 Favorable Fixed costs Rent 12,100 12,100 –0– Supervision 19,000 19,000 –0– Depreciation 7,300 7,300 –0– Total fixed 38,400 38,400 –0– Total costs…
Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (6 Ibs. @ $5 per Ib.) $ 30 Direct labor (2 hrs. @ $17 per hr.) 34 Overhead (2 hrs. @ $18.50 per hr.) 37 Total standard cost $ 101 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 45,000 Indirect labor 180,000 Power 45,000 Repairs and maintenance 90,000 Total variable overhead costs $ 360,000 Fixed…
Question 15 nts View Policies Current Attempt in Progress The direct materials budget shows: upport Desired ending direct 48000 pounds materials 66000 pounds Total materials required 60200 pounds Direct materials purchases The total direct materials needed for production is 5800 pounds. O 126200 pounds. O 18000 pounds. O 12200 pounds. hp tsd Ins prt sc 19 fil 44 & 5 7 Y D
QS 21-4 Flexible budget performance report P1 The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. The company's actual sales were 26,000 units at $480,000. Actual variable costs were $112,000 and actual fixed costs were $145,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. Page 847
Question 7 Landon Inc. projected sales of 31,000 personal journals for 20Y6. The estimated January 1, 20Y6, inventory is 2,200 units, and the desired December 31, 20Y6, inventory is 3,000 units. What is the budgeted production (in units) for 20Y6?fill in the blank 1 units
Question 6 View Policies Current Attempt in Progress Crane Company determines that 59000 pounds of direct materials are needed for production in July. There are 3700 pounds of direct materials on hand at July 1 and the desired ending inventory is 3300 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases? ort $175800 O $180600. O $178200. O $173400. ea Chp ins prt sc fho 12 home delete % 5 & 7 backspace lock T P hom G H K enter B pause t shift ctri NM N
EX.22-02 ALGO Flexible Budget for Selling and Administrative Expenses for a Service company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous administrative expense 9% of sales 23% of sales $1,750 per month plus 1% of sales Office salaries expense Customer support expenses Research and development expense $17,000 per month $2,500 plus 2% of sales 3,300 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $110,000, $140,000, and $165,000. Enter all amounts as positive numbers.
Exercise 21-4 (Algo) Preparing flexible budget performance report LO P1 Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $85 per unit and variable costs of $34 per unit. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) For Month Ended June 30 Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget Actual Results (12,300 units) (12,300 units) 627,300 285,000 366,000 300,000 Variances Favorable/Unfavorable $ 44,500 Favorable
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.

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS