Flexible Budget for Assembly DepartmentSteelcase Inc. is one of the largest manufecturers of offce furnture in the United States. In Grand Rapids, Mchigan, taDepartment. Assume the following information for the Assembly DepartmentDirect laber per filing cabinet 12 minutesSupervisor salaries$150,000 per monthDepreciation$24,500 per menthDirect labor rate$22 per hourPrepare a flexible budget for 18,000, 20,000, and 22,000 filing cabinets for the menth of August in the Assembly DepartmenSteelcase Inc.-Assembly DepartmentFlexible Production BudgetFor the Month Ending August 31 (assumed data)Units of production18,00020,00022,000Variable cost:Direct laborFoxed cost:Supervisor salariesDepreciationTotal fixed costTotal departrment costFor each level of cabinet production, show al variable costs and all fixed costs.

Meaning of Budget A Budget is usually an estimate for the revenue and expenses for a future period…

Answered: Flexible Budget for Assembly Department…

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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Flexible Budget for Fabrication Department Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department: Direct labor per filing cabinet 20 minutes Supervisor salaries $129,000 per month Depreciation $25,000 per month Direct labor rate $21 per hour Prepare a flexible budget for 15,000, 19,000, and 23,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not significant. Enter all amounts as positive numbers. Steelcase Inc. - Assembly Department Month Ending August 31 (Assumed Data) Units of production 15,000 19,000 23,000 Variable cost: $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Fixed cost: $fill in the blank 6 $fill in the blank 7 $fill in the blank 8 fill in the blank 10…
Print Item Static Budget versus Flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Hagerstown CompanyMachining DepartmentMonthly Production Budget Wages $2,250,000 Utilities 72,000 Depreciation 36,000 Total $2,358,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced May $1,600,000 40,000 June 1,950,000 48,000 July 2,200,000 52,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for May–July have been significantly less than the monthly static budget of $2,358,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget…
Flexible budget for Assembly Department Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department.Assume the following information for the Assembly Department: Direct labor per filing cabinet 12 minutesSupervisor salaries $150,000 per monthDepreciation $24,500 per monthDirect labor rate $22 per hour Direct labor per filing cabinet 12 minutes Supervisor salaries $150,000 per month Depreciation $24,500 per month Direct labor rate $22 per hour Prepare a flexible budget for 18,000, 20,000, and 22,000 filing cabinets for the month ofAugust in the Assembly Department, similar to Exhibit 5
Output/Input Budget Vinyard Clinic has the following resource input information available for a routine physical examination. Each exam normally requires 0.75 hours of examining room time, including 30 minutes of nursing services, 15 minutes of physician services • Each exam also utilizes one package of examination supplies costing $50 each. Including benefits, physicians earn $90/hour and nurses earn $35/hour. Variable overhead is budgeted at $15 per examining room hour and fixed overhead is budgeted at $8,000 per month. Required Prepare an output/input budget for October when 500 routine examinations are planned. Discuss some of the likely benefits to Vinyard Clinic of dedicating time to go through the budgeting process. VINYARD CLINIC Output/Input Budget For the Month of October Examining supplies Labor: Nursing services Physician services Variable overhead Fixed overhead Total budget
provide the followinf inforamtion to help prepare the master budget for the next four months of opration Could you solve ( D , E , F and G ) only thanks
Static Budget versus Flexible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: Niland CompanyMachining DepartmentMonthly Production Budget Wages $663,000 Utilities 38,000 Depreciation 64,000 Total $765,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced January $721,000 128,000 February 691,000 117,000 March 657,000 105,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been significantly less than the monthly static budget of 765,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the…
FLEXIBLE BUDGETING XYZ Company produces electrical appliances. Its Assembly Department operates under a flexible budget, with monthly allowances established at 20% intervals. The following information shows fixed and total expenses at the 80% and 100% level. Total Cost Fixed 80% 100% Direct materials Rs. 16,000 Rs. 20,000 Direct labor 9,000 11,250 Supervision Rs. 500 500 500 Indirect materials 250 1,450 1,750 Property Tax 300 300 300 Maintenance 600 1,400 1,600 Power 200 280 300 Insurance 175 175 175 Depreciation 1,600 1,600 1,600 Required: Prepare a flexible budget at the 93% level.
Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: • Four welding units, with a lease cost of $11,000 per year per unit • Six welding employees each paid a salary of $51,000 per year (A total of 12,000 welding hours are supplied by the six workers.) • Welding supplies: $400 per job • Welding hours: 4 hours used per job During the year, the activity operated at 85 percent of capacity and incurred the following actual activity and resource costs. • Lease cost: $44,000 • Salaries: $321,300 • Parts and supplies: $1,014,900 1. Prepare a performance report for the welding activity. In the last column of Foy Company Activity-Based Performance Report, if variance amount is unfavorable select "U" , select "F", if it is Favorable and select "NA" if there is no variance. Foy Company Activity-Based Performance Report Activity Actual Cost Budgeted Cost…
Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January 13,140 February 12,300 March 15,075 The variable overhead rate is $0.60 per direct labor hour. Fixed overhead is budgeted at $2,580 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. Patrick Inc. Overhead Budget For the Coming First Quarter Overhead: January February March Total Total direct labor hrs Variable overhead rate Total variable overhead $4 Add: Fixed overhead Total overhead
Preparing a Direct Labor Budget Patrick Inc. makes industrial solvents. Planned production in units for the first three months of the coming year is: January 40,000 February 55,000 March 60,000 Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $18.40 per hour. Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Labor Budget For the Coming First Quarter Direct Labor Budget: January February March Total Units to be produced Direct labor hrs per unit Total direct labor hrs Wage rate Direct labor cost
Flexible Budget for Fabrication Department Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department: Direct labor per filing cabinet 30 minutes Supervisor salaries $180,000 per month Depreciation $15,000 per month Direct labor rate $24 per hour Prepare a flexible budget for 10,000, 25,000, and 40,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not significant. Enter all amounts as positive numbers. Steelcase Inc. - Assembly Department Month Ending August 31 (Assumed Data) Units of production 10,000 25,000 40,000 Variable cost: Direct labor $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Fixed cost: $fill in the blank 6 $fill in the blank 7 $fill in the blank 8 fill in…
Static budget versus flexible budget: The I'm just started digging a production supervisor of the machine department for hanger town company agree to the following monthly static budget for the upcoming year. Hanger town machine Department monthly production budget, Wages- $570,000, utilities- 39,000, depreciation- 65,000 total 674,000 2196 the actual amount spent and the actual units produce in the first three months in the machines Department were as follow. May- amount spent $636,000 unit produced 55,000 June- 607,000 unit produced 50,000 July- 579,000 unit produced 45,000 The machine Department supervisor has been very pleased with his this performance because actual extra Dentures for May through July have been significantly Imagine lyrics less than the monthly static budget of 674,000. However the plant manager believes that the budget should not remain fixed for every month but should flex or adjust to the volume of the work that it is produced in the machine Department.…

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