Exercise 4-32The owner of Jessica's Baby Store must decide on thenumber of babies' dresses to order for the coming season. Oneorder must be placed for the entire season. The normal sales priceis P120 per dress; however, unsold dresses at season's end must besold at half the price. The following data are available:Unit SalesCM at Regular Unit Loss atHalf PriceOrderQuantityPriceUnit CostSales Price100P120P100P20P40200120952535300120903030400120853525Over the past 20 seasons, Jessica has experienced thefollowing sales:Quantity Sold100Frequency2003008.400The historical sales have occurred at random (i.e., theyhave exhibited no cycles or trends and the future is expected to besimilar to the past.REQUIRED:1. Prepare a pay-off table representing the expected CM of eachof the four possible strategies, assuming that only the fourquantities listed are ever sold.2. Compute the cost of the perfect information. Exercise 4-31The Charito Company is planning an overhead budget cost budget forthe next month, July, 2021. Past cost studies indicate that costs have followedbehavior patterns as given below:Variable RatePer HourIndirect materialsPO.90Heat, light & power1.20Repairs & maintenanceLubrication4.600.50In addition, management has estimated fixed factory overhead asfollows:SupervisionP44,00036,00014,500Indirect laborHeat, light & power17,200Repairs & maintenanceTaxes & insurance9,000TotalP129,000During the next month, the company plans to manufacture 150,000 unitsof product. Products are produced at the rate of 6 units per hour. Normal plantcapacity is 30,000 hours.REQUIRED:1. Prepare the factory overhead budget for July, 2021.2. Determine the unused normal capacity, if any.

Manufacturing overhead refers to the indirect costs incurred in the production process. It is also…

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 Repairs & maintenance 1.20 4.60 Lubrication 0.50 In addition, management has estimated fixed factory overhead as follows: Supervision P44,000 Indirect labor 36,000 14,500 17,200 Heat, light & power 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.

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 Repairs & maintenance 1.20 4.60 Lubrication 0.50 In addition, management has estimated fixed factory overhead as follows: Supervision P44,000 Indirect labor 36,000 14,500 17,200 Heat, light & power 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
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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…
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Ch. 8 Total Budgeted Manufacturing Overhead Please solve and explain the following problem Edison's Corporation manufacturing overhead rate is $5.00 per direct labor hour. Budgeted Direct Labor cost is $20 per hour. Total budgeted fixed overhead is $25,000 per month. Total budgeted direct-labor hours for the month of July is 20,000. Total budgeted manufacturing overhead for July is??