Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Total sales Variable cost: Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total variable cost Fixed cost: Total fixed cost 14% of sales 18% of sales Total selling and administrative expenses $5,500 per month plus 12% of sales $28,000 per month $12,000 per month plus 20% of sales $30,000 per month $400,000 $500,000 $600,000 O

Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Total sales Variable cost: Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total variable cost Fixed cost: Total fixed cost 14% of sales 18% of sales Total selling and administrative expenses $5,500 per month plus 12% of sales $28,000 per month $12,000 per month plus 20% of sales $30,000 per month $400,000 $500,000 $600,000 O

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 2E: Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a...

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Show Me How 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 Office salaries expense Customer support expenses Research and development expense ebook Total sales Variable cost Prepare a flexible selling and administrative expenses budget for April for sales volumes of $85,000, $105,000, and $130,000. Enter all amounts as positive numbers. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost 8% of sales 18% of sales Fixed cost: Miscellaneous administrative expense Office salanes expense $1,350 per month plus 3% of sales $13,000 per month $1,900 plus 4% of sales 4,250 per month $85,000 $105,000 $130,000 100
Flexible Budget for Selling and Administrative Expenses Fuller Enterprises uses flexible budgets that are based on the following data: Sales commissions Advertising expense Customer support expense Office salaries expense Miscellaneous administrative expense Research and development expense Total sales Variable cost: Miscellaneous selling expenses Advertising expense Prepare a flexible selling and administrative expenses budget for July for sales volumes of $105,000, $130,000, and $160,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. FULLER ENTERPRISES Sales fees Flexible Selling and Administrative Expenses Budget For the Month Ending July 31 Total variable cost Fixed cost: 9% of sales Total fixed cost 19% of sales Total selling and administrative expenses $2,350 plus 3% of sales $16,000 per month $2,900 plus 2% of sales $1,700 per month $105,000 $130,000 $160,000 4
Integrated Excel: Preparing a Contribution Format Income Statement Using the High-Low Method Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format income statement. Budgeted information for Quarter 1 of 2024: Sales in units Sales price per unit After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) Sales Commissions (per dollar of sales). Administrative Salaries (per quarter) Rent Expense (per quarter) Depreciation Expense (per quarter) Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Quarter 1 Quarter 2 Quarter 3 Quarter 4 2023 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Cost $ 67,000 $ 94,000 $ 89,800 $ 92,600 $ 72,500 $80,000 $ 84,000 $ 100,000 17,000 $ 48.00 Units 12,500 21,000 13,800 20,000 13,700 14,000 14,300 22,500 $29.00 9.50€ $ 45,000 $ 27,000 $ 36,000 Required: Use the data to answer the…
Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 4,400 meals at an average price of $15. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service costs (variable with respect to meals) Variable service costs (with respect to meals) Food costs $11,000 16,500 6,400 9,300 $43,200 Labor Other variable costs Fixed service costs Total service costs Marketing and administrative costs Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative costs 6,000 5,000 $11,000 Total costs $54,200 Required: Prepare a budgeted income statement for June. (Do not…
Howard Cooper, the president of Campbell Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour $ 85.00 Labor cost 37.00 Overhead cost 7.10 Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative 3.80 $522,000 142,000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 45,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Campbell charges customers $80 per hour, the firm can achieve 50,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same…
2. Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data:
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Budget Performance Report for a Cost Center Funderburk Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows: Customer service salaries $628,870 Insurance and property taxes 131,860 Distribution salaries 1,003,190 Marketing salaries 1,182,630 Engineer salaries 962,380 Warehouse wages 674,030 Equipment depreciation 211,360 Total $4,794,320 During January, the costs incurred in the Consumer Products Division were as follows: Customer service salaries $692,700 Insurance and property taxes 126,780 Distribution salaries 990,380 Marketing salaries 1,248,010 Engineer salaries 943,010 Warehouse wages 647,030 Equipment depreciation 211,150 Total $4,859,060 Required: 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. If an…
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