Exercise 8-3 (Algo) Preparing flexible budgets LO P1Tempo Company's fixed budget (based on sales of 12,000 units) folllows.Fixed BudgetDirect laborSales (12,000 units x $218 per unit)CostsDirect materialsIndirect materials2,616,000246,000528,000324,000Supervisor salary76,000Sales commissions96,000Shipping180,000Administrativesalaries126,000Depreciation-Office equipment96,000Insurance66,000Office rent76,000Income772,0001. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Compute total fixed costs.Total fixed costs< Required 1Required 3 >

1: Compute Total Variable Cost per UnitFirst, we need to identify which costs are variable. Variable…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 20-1A (Algo) Manufacturing: Preparing production, materials, labor, and overhead budgets LO P1 [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 1 pounds of carbon fiber. Management reports that 6,500 snowboards and 7,500 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 165,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,000 snowboards and 5,500 pounds of carbon fiber in inventory. Carbon fiber costs $14 per pound. Each snowboard requires 0.5 hour of direct labor at $19 per hour. Variable overhead is budgeted at the rate of $9 per direct labor hour. The company budgets fixed overhead of $1,797,000 for the quarter. Problem 20-1A (Algo) Part 4 4. Prepare the factory overhead budget for the third quarter. BLACK DIAMOND COMPANY Factory Overhead Budget Direct labor hours needed Budgeted…
Check my w QS 21-1 (Algo) Flexible budget performance report LO P1 Beech Company produced and sold 112,000 units in May. For the level of production in May, budgeted amounts were sales, $1,260,000; variable costs, $846,000; and fixed costs, $260,000. The following actual results are available for May. Actual Results Sales (112,000 units) Variable costs Fixed costs $ 1,237,000 814,500 260,000 Prepare a flexible budget performance report for May. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) BEECH COMPANY Flexible Budget Performance Report For Month Ended May 31 Flexible Budget Actual Results Favorable/ Unfavorable $ 1,260,000 Sales Variable costs 846,000 Contribution margin 414,000 0 Fixed costs 260,000 260,000 Income 154,000 $ (260,000) Prev ere to search s $ Variances 1 of 10 ⠀⠀⠀ Unfavorable Favorable Favorable No variance Favorable Next >
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multiple products LO 3-6 Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Lite Power Total Budgeted Budgeted Per Amount Number Unit P-TAITEITI 360 @ $600 = $ 216,000 840 @ $580 = $ 487,200 1,200 $703,200 360 @ 370 = (133,200) 840 @ 390 = (327,600) 1,200 (460,800) 840 @ 190 = 159,600 1,200 242,400 360 @ 230 = 82,800 (10,000) (141,400) $ 101,000 $ 72,800 Sales Variable cost Contribution margin Fixed cost Net income Budgeted Per Number Unit Complete this question by entering your answers in the tabs below. Required A Required B Sales Power Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. c. Calculate the break-even point in total number of units. d. Determine the number of units of each product Vernon must sell to break even. e. Verify the break-even point by preparing an income statement for each product as…
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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.
Problem 13-57 (Algo) Sales Expense Budget (LO 13-4) SPU, Ltd., has just recelved its sales expense report for January, which follows. Item Amount Sales commissions $370, 500 9e,400 Sales staff salaries Telephone and mailing Building lease payment 51, 000 60,000 19,100 8e, 000 33,750 51,190 Utilities Packaging and delivery Depreciation Marketing consultants You have been asked to develop budgeted costs for the coming year. Because this month is typical, you decide to prepare an estimated budget for a typical month in the coming year and you uncover the following additional data: Sales volume is expected to Increase by 14 percent. Sales prices are expected to decrease by 10 percent. Commissions are based on a percentage of sales revenue. • Sales staff salarles will increase 4 percent next year regardless of sales volume. • Bullding rent is based on a five-year lease that expires in three years. • Telephone and malling expenses are scheduled to Increase by 6 percent even with no change In…

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