Galway Plc manufactures and sells a single product. The following budgeted/ actual information is provided in relation to the production of this product: $ Selling price per unit 40.00 Direct materials per unit 8.00 Direct labour per unit 5.00 Variable production overheads per unit 5.00 Details for the months of May 2015 are as follows: Мay Production of Product A 500 Sales of Product A (units) 480 Fixed production overheads are budgeted at $6,000 per month and are absorbed on a unit basis. The normal level of production is budgeted at 400 units per month. Other costs Fixed selling $4,000 per month Fixed Administration $2,000 per month There was opening inventory for Product A at the start of May of 60 units Prepare for each year A. Marginal Costing Statement marks) B. Absorption Costing Statement

Galway Plc manufactures and sells a single product. The following budgeted/ actual information is provided in relation to the production of this product: $ Selling price per unit 40.00 Direct materials per unit 8.00 Direct labour per unit 5.00 Variable production overheads per unit 5.00 Details for the months of May 2015 are as follows: Мay Production of Product A 500 Sales of Product A (units) 480 Fixed production overheads are budgeted at $6,000 per month and are absorbed on a unit basis. The normal level of production is budgeted at 400 units per month. Other costs Fixed selling $4,000 per month Fixed Administration $2,000 per month There was opening inventory for Product A at the start of May of 60 units Prepare for each year A. Marginal Costing Statement marks) B. Absorption Costing Statement

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...

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Question 1 Shiashi Ltd is preparing its manufacturing overhead budget for 2024. Relevant data consist of the following: - Units to be produced (by quarters): 20,000, 24,000, 34,000 and 36,000. Direct labour: Time is 1.5 hours per unit. Variable overhead costs per direct labour hour: Indirect materials GH¢1.40; indirect labour GH 2.40 and maintenance $1.50. Fixed overhead costs per quarter: Supervisory salaries GH 55,000; depreciation GH 27,000 and maintenance GH¢25,000. a) You are required to prepare the manufacturing overhead budget for the year, showing quarterly data. b) What does an organisation stand to gain by preparing annual budgets for its operations? c) Describe the budgeting process of any business entity that you are familiar with.
Practice 1:The following data has been extracted from the operating records of HPPT SolutionSdn Bhd for the last two quarters of the year to 31 December 2020: Quarter 3Production units 7,000Sales units 5,500RMSelling price per unit 100Variable manufacturing cost per unit:Direct material cost 20Direct labor cost 15Variable overheads 10Fixed production overheads are budgeted at RM120,000 for a budgeted productionof 8,000 units per quarter. These overheads are absorbed on per unit of productionbasis.Non-production overheads comprised:Fixed administration expenses RM40,000 per quarter.Selling and distribution expenses are 10% of sales.You are required to prepare an income statement under:(a) Marginal costing and(b) Absorption costing.
Question 1: Asan Ltd manufactures two products. The following budgeted information relates to each product. Product Alpha 70 12 Product Beta Selling Price Per Unit Direct Materials Cost Per Unit Cost per kg of material Direct Labour Hours Per Unit Direct Labour Wage Rate Per Hour Variable Overheads Per Unit Production and sales per month (units) Fixed overheads per month 90 20 4 6. 3 7800 92000 3100 43000 Required Calculate the following for each Product, based on the information given above: a. i. Contribution per unit i. Break even point in terms of Sales Units and Sales Revenue i. Margin of Safety as a % of normal production iv. Budgeted Profit per month The production manager has been warned that there could be a shortfall of material during the next month due to transportation strike. He estimates that there will be 20,000 kilograms available. Calculate the amount of units that should be produced in order to maximise profit/minimise loss and calculate the estimated profit/loss…
Q.What is the budgeted manufacturing overhead cost per output unit in January 2018?
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Ay 1 mcqs Bushman Ltd is preparing its manufacturing overhead budget for 2022. Relevant data are as follows: 1. Units to be produced (by quarters): 10,000, 12,000, 15,000, 18,000 2. Direct labour: 1.5 hours per unit 3. Variable overhead costs per direct labour hour Indirect materials $0.70 Indirect labour $1.20 Maintenance $0.50 4. Fixed overhead costs per quarter Supervisory salaries $35,000 Depreciation $16,000 Maintenance $15,000 1.) The total manufacturing overhead costs for the year is a. $130,800 b. $462,000 c. $500,000 d. $264,000 2.) The total fixed costs for quarter 3 is a. $55,000 b. $57,750 c. $64,000 d. $66,000 3.)How much is the total direct labour hours for quarter 4? a. 27,000 b. 22,500 c. 18,000 d. 15,000 4.)How much is the total direct labour hours for the year? a. 55,000 b. 82,500 c. 198,000 d. 140,000 5.)The total manufacturing overhead costs for quarter 1 is a. $109,200 b. $102,000 c. $120,000 d. $130,800 6.)How much is the total direct labour hours for…
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
Discussion QuestionThe table below shows monthly data collected on production costs and on the number of unitsproduced over a twelve month period.Month Total ProductionCostsLevel of Activity(Units Produced)July $230,000 3,500August 250,000 3,750September 260,000 3,800October 220,000 3,400November 340,000 5,800December 330,000 5,500January 200,000 2,900February 210,000 3,300March 240,000 3,600April 380,000 5,900May 350,000 5,600June 290,000 5,000a) Determine the variable cost per unit and the fixed cost using the high-low method.b) What is the equation of the total mixed cost function?c) Based on the High-Low method, what is the total production costs if 6,500 units areproduced?d) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.e) Using the line of best-fit, determine the company’s fixed cost per month and the variablecost per unit. (Use 0 & 5,000…
Question 1 (Single-rate versus dual-rate methods for allocating support department costs)The Cincinnati power plant that services all manufacturing departments of Eastern MountainEngineering has a budget for the coming year. This budget has been expressed in the following monthlyterms:ManufacturingDepartmentNeeded at Practical CapacityProduction Level (KilowattHoursAverage Expected MonthlyUsage (Kilowatt-Hours)Loretta 13,000 10,000Bently 21,000 9,000Melboum 14,000 10,000Eastmoreland 32,000 11,000Total 80,000 40,000The expected monthly costs for operating the power plant during the budget year are $20,000: $8,000variable and $12,000 fixed.Required:1. Assume that a single cost pool is used for the power plant costs. What budgeted amounts will beallocated to each manufacturing department if:(a) the rate is calculated based on practical capacity and costs are allocated based on practicalcapacity and(b) the rate is calculated based on expected monthly usage and costs are allocated based…
Nn.18. Subject :- Account