Exercises: 5.Lasse has an ice-cream stall. The budgeted costs for the following year are as follows: - material (ice-cream, chocolate...) - rent - salaries - depreciation - interest - other overheads 45 000 23 320 79 300 5 400 6 100 2 900 a) How much is the overhead rate (without profit)? b) How much is the overhead rate, if the expected profit for the following year is 10 000 euros? c) How much should the price of an ice-cream serving be, if the direct costs are 1,20 euros. Use the overhead rate of b)?
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![Exercises:
5.Lasse has an ice-cream stall. The budgeted costs for the following year are as
follows:
- material (ice-cream, chocolate...)
- rent
- salaries
- depreciation
- interest
- other overheads
45 000
23 320
79 300
5 400
6 100
2 900
a)
How much is the overhead rate (without profit)?
b)
How much is the overhead rate, if the expected profit for the following
year is 10 000 euros?
c)
How much should the price of an ice-cream serving be, if the direct costs
are 1,20 euros. Use the overhead rate of b)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3cf09df-cd37-4214-aa69-af10eea3fc2b%2F645f1d05-64cf-4fa9-8e7e-0ae56c5368d9%2Fqbypwma_processed.jpeg&w=3840&q=75)
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- As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you've been asked to do some what-if analyses. Following is the budgeted information regarding the coming year: Selling price per unit Variable cost per unit Fixed costs (per year) $ 100.00 70.00 1,200,000 Required: 1. What is the breakeven volume, in units and dollars, for the coming year? 2. Assume that the goal of the company is to earn a pretax (operating) profit of $300,000 for the coming year. How many units would the company have to sell to achieve this goal? 3. Assume that of the $70 variable cost per unit the labor-cost component is $25. Current negotiations with the employees of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effect on the breakeven point in units if selling price and fixed costs are as planned, but the labor cost for the coming year is…The controller of the Stump Company is preparing the budget for 2021 and needs to estimate a cost function for delivery costs. Information regarding delivery costs incurred in the prior 2 months are: LOADING... (Click the icon to view the information.) Requirements 1. Estimate the cost function for delivery. 2. Can the constant in the cost function be used as an estimate of fixed delivery cost per month? Explain. Requirement 1. Estimate the cost function for delivery. Delivery costs = + ( × ) Delivery costs = + ( × ) Requirement 2. Can the constant in the cost function be used as an estimate of fixed delivery cost per month? Explain. The cost function in requirement 1 is an estimate of how costs behave ▼ outside of within the relevant range, not at cost levels ▼ outside within the relevant range. If there are no months with zero miles driven represented in the delivery cost…Check my work As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you've been asked to do some what-if analyses. Following is the budgeted information regarding the coming year: Selling price per unit Variable cost per unit Fixed costs (per year) Required: $ 100.00 63.00 1,227,327 1. What is the breakeven volume, in units and dollars, for the coming year? 2. Assume that the goal of the company is to earn a pretax (operating) profit of $332,001 for the coming year. How many units would the company have to sell to achieve this goal? 3. Assume that of the $63 variable cost per unit the labor-cost component is $29. Current negotiations with the employees of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effect on the breakeven point in units if selling price and fixed costs are as planned, but the labor cost for the…
- The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?A company has the following budget formula for annual electricity expense in its shop: Expense = P 7,200 + (PO.60 x units produced) If management expects to produce 200,000 units during March, the appropriate budget for electricity would be. 1. P 7,200 2. P 12,000 3. P 12,600 4. P 19,200 О1 041. The more reliable sales amount from which to base projected sales is b) Latest year a) Latest month c) Latest 2 years d) Latest 5 years 2. Assume: Each factory worker can make 10 units of product per hour. Each worker's wage is P6 per hour. The total labor cost to finish 20,000 units of product is a) P6,000 b) P12,000 c) P120,000 d) P1,200,000 3. The following are steps in the financial planning process. Choose the correct order. A. Analysis and evaluation of projected financial statements B. Setting forecasts on sales, cost, expenses and capital expenditures C. Review and evaluation of projected financial plan D. Preparation of projected financial statements с) В-А-С-D a) C-A-D-B b) В-D-A-C d) A-C-B-D 4. Assume the following projections or forecasts: Retained earnings will increase by P75; current assets will increase by P200; current liabilities will spontaneously increase by P105. Funds need to increaseby a) P380 b) P240 c) P170 d) P20
- What are the expected average quarterly costs of running a consulting practice if fixed costs are expected to be $4,000 a month and variable costs are expected to be $100 per client for each quarter? Expected number of clients for the year are: Jan - March April - June July - Sep Oct - Dec 110 140 150 100 A. $12,500 B. $24, 500 C. $16, 500 D. $19,500Problem 9) An entrepreneur is considering opening a coffee shop in downtown Pasadena. The building that he is considering will have a monthly lease payment of $3200 and basic utility costs of $600-per month. Two employees will be hired at $10.00/hour/employee (including overhead and benefits). Each employee will work an average of 170 hours per month. The average revenue per customer is estimated at $7.00. The variable cost of serving each customer is estimated at $2.00. (a) Calculate how many customers per month it will take for the coffee shop owner to breakeven. (b) How many customers would need to be served per month to achieve a monthly profit of $5,000?Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d.…
- Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d.…Joseph is working on the budget for his summer window-washing business, trying to figure out what his total costs are going to be for the season. He has monthly data from last summer, so he decided to start with that. Using the observations below, use the high-low method to estimate a total monthly cost function for Joseph's business. Month 1 2 3 Number of Labor Hours Spent Y = $ 60 105 85 (Round answers to 2 decimal places, e.g. 15.25.) X + $ Total Cost $196 $322 $250esc You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 80 hours in your first month and 370 hours in your second month of business. You charge your customers $24 per hour. Your anticipated costs include: Advertising Gas Depreciation Assistant's Wages Miscellaneous Expenses You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the accounts receivable balance at the end of your second month of business. Click Save and Submit to save and submit. Click Save All Answers to save all answers. 1 Q A 2 W $8 per month $1.40 per hour $25 per month $8.00 per hour $40 per month S # 3 E D $ 4 R 67 dº % 5 LL MacBook Pro T < 6 G & Y 7 H * 00 8 U J o
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