Answered: flexible budget

Business

Accounting

flexible budget

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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Vaughn Manufacturing has the following budgeted costs for the next year: Shop employees' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Invoice cost of parts and materials Total budgeted costs Time Charges O. $42. O $47. O $54. O $44. $125000 25000 15000 $165000 Material Charges $ 50000 20000 55000 450000 $575000 The labor rate to be used next year assuming 7500 hours of repair time and a profit margin of $25 per labor hour is >
Apparelle Co. developed the following equation to predict certain components of its budget for the coming period: Costs = $50,000 + ($5 x direct labor hours) The $5 would approximate:a. total costb. direct labor rate per hourc. fixed cost per direct labor hourd. variable costs per direct labor hour
How much is the over/underapplied FOH? Indicate whether over/underapplied. Ex. 123456 Overapplied or 123456 Underapplied A company manufactures plastic products for the home and restaurant market. The company also does contract work for other customers and utilizes a job order costing system. The flexible budget covering next years' expected range of activity is: 50,000 40,000 80,000 64,000 P100,000 P160,000 P220,000 150,000 Р250,000 Р310,000 Р370,000 Direct Labor Hours 110,000 88,000 Machine Hours Variable OH Costs Fixed OH Costs 150,000 150,000 Total OH Costs A predetermined overhead rate is based on direct labor hours is used to apply total overhead. Management has estimated that 100,000 direct labor hours will be used next year. At the end of the year, actual direct labor hours for the year were 112,375 hours and the actual manufacturing overhead for the year was P412,525.
Questions 1. Oathall Limited, which manufactures a single product, is considering whether to use marginal or absorption costing to report its budgeted profit in its management accounts. The following information is available: GH¢ /unit Direct materials 4 Direct labour 15 - 19 Selling price 50 -- Fixed production overheads are budgeted to be GH¢ 300,000 per month and are absorbed on an activity level of 100,000 units per month. For the month in question, sales are expected to be 100,000 units although production units will be 120,000 units. Fixed selling costs of GH¢ 150,000 per month will need to be included in the budget as will the variable selling costs of GH¢ 2 per unit. There are no opening stocks. Required: (a) Prepare the budgeted profit and loss account for a month for OathalI Limited using absorption costing. Clearly show the valuation of any stock figures. (b) Prepare the budgeted profit and loss account for a month for OathalI Limited using marginal costing. Clearly show the…
James Corporation is using the following flexible-budget formula for annual indirect labor cost: Total cost = P12,000 + P0.75 per machine hour. For the month of June, the operating budgets are based upon 10,000 hours of planned machine time. Indirect labor costs included in this planning budget are 8,500. How to get the 8,500?
Calculate the total factory overhead rate per unit using direct labor hours as allocation base. The flexible budget coco corp. in different levels of direct labor hours. Direct labor hours 20,0000 30,000 40,000 Variable FOH 40,0000 60,000 80,000 Fixed FOH 10,0000 10,000 10,000 Each product needs 5 direct labor hours and the company expects to produce 2,000 units in 2021. Calculate the total factory overhead rate per unit using units of production as allocation base.
Marigold provided the following information from its accounting records for 2022: Expected production Actual production Budgeted overhead Actual overhead 33200 labour hours 31200 labour hours $1660000 $1610000 How much is the overhead application rate if Marigold bases the rate on direct labour hours? O $51.60 per direct labour hour O $48.49 per direct labour hour O $50.00 per direct labour hour O $53.21 per direct labour hour
Zizi plc uses a standard absorption costing system and produces and sells product 8W. The standard cost card is below: Product 8W (€ per unit) Direct material (5 per kg) 15 Direct labour (6 per hour) 12 Fixed manufacturing overhead 10 Total production cost 37 Standard profit 13 Standard selling price 50 * Absorption rate based on standard labour hours Budgeted and actual production and sales units for december 2020 were as follows: Budget Actual Production 1,100 900 Sales 1,000 800 Actual data for December 2020 were as follows € Direct material purchases 1,200 kgs costing 12,000 Direct materials used 1,100 kgs Direct labour hours 500 hours costing 6,000 Fixed manufacturing overhead 5,000 Sales revenue 30,000 An analysis of the Direct labour hours shows that the 500 hours that were paid for 50 were idle time due to a machinery breakdown. There were no inventories of Direct materials or finished products (planned or actual) at the…
A company's flexible budget for 15,000 units of production showed per unit contribution margin of $4.10 and fixed costs, $25,000. The income expecte if the company produces and sells 18,000 units is: "Multiple Choice $73,800. $36,500 $8,000 O $25,000 $48,800 6
Planned sales volume for 2009 is 12,400 units and each unit requires the following prime costs: Direct Materials 3 lbs @ P2Direct Labor 2 hrs @ P25 The regression equation for factory overhead is y = P 50,000 + P 0.80 (direct labor hours).Budgeted inventory end of the product is 300 units. There are 200 units in inventory beginning costing P 70. How much is the total production cost for the period?a. P 1,950,000 b. P 194,000 c. P 219,000 d. P 195,000 How much should be the budgeted cost of goods sold?a. P 186,240 b. P 188,240 c. P 184,720 d. P 182,720 How much should be the budgeted finished goods inventory end?a. P 23,280 b. P21,000 c. P 14,000 d. P 10,820
The following data get out from Samsung industrial company: Direct materials costs JD 75 Direct manufacturing labor costs 20 Variable manufacturing overhead costs 15 Fixed overhead costs 28 Each TV need to 0.75 hour, and each hour by JD 31.5. The number of units manufactured is the cost driver for direct materials, direct manufacturing labor, and variable manufacturing overhead. The relevant range for the cost driver is from 0 to 6,000 TV. Budgeted and actual data for November 2019 are: Budgeted fixed costs for production JD 141, 750 Budgeted selling price JD 138 per unit Actual selling price 152.75 per unit Revenue at budgeted…
vercise 2-Flexible budget and overhead rates: Babyl Company expects a normat capacity of 20,000 direct labor hours for March 2017. The over- head costs under this normal capacity are as follows: Fixed costs ID 1,000,000 ID 800,000 ID 2,200,000 ID 3,000,000 ID 400,000 Variable costs ID 100 per Indirect labor Other costs ID 50 per DLH Maintenance ID 120 per DLH Depreciation Supplies ID 20 per DLH Required: 1-Prepare flexible budget for levels of activity from 18,000 to 24,000 direct labor hours in increments of 2,000 direct labor hours. 2- Calculate standard overhead rates.