Exercises:5.Lasse has an ice-cream stall. The budgeted costs for the following year are asfollows:- material (ice-cream, chocolate...)- rent- salaries- depreciation- interest- other overheads45 00023 32079 3005 4006 1002 900a)How much is the overhead rate (without profit)?b)How much is the overhead rate, if the expected profit for the followingyear is 10 000 euros?c)How much should the price of an ice-cream serving be, if the direct costsare 1,20 euros. Use the overhead rate of b)?

Given Data:Material (ice-cream, chocolate, etc.): 45,000 eurosRent: 23,320 eurosSalaries: 79,300…

Answered: Exercises: 5.Lasse has an ice-cream…

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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D6)
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Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month’s rent of $760. Budgeted cost data per tenant application for 2022 follow: Professional labor: 2.0 hours at $15.00 per hour Credit checks: $53.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,600 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $9,300 for 480 hours of professional labor. Credit checks went up to $58 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $3,900. The average first monthly rentals for August 2022 were $860 per apartment unit for 90 units. Required: 1. (a) What is the master budget variance for August…
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Q1.Determine the production plan that will maximise the weekly profit of MJD Ltd and prepare a profit statement showing the profit your plan will yield. Q2.The marketing director of MJD Ltd is concerned about the company’s ability to meet the quantity demanded by its customers. Two alternative strategies are being considered to overcome this: To increase the number of hours worked using the existing machinery by working overtime. Such overtime would be paid at a premium of 50% above normal labour rates, and variable overheads costs would be expected to increase in proportion to labour costs. To buy product B from an overseas supplier at a cost of £19 per unit; which includes the cost of delivery. This purchased product would need to be repackaged at a cost of £1 per unit before it can be sold Evaluate each of the two alternative strategies and write a report to the marketing director discussing which strategy should be adopted.
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