Hathaway Inc. produces and sells golf umbrellas to local resorts. Hathaway anticipates April to be a busy month with the sale of 1000 umbrellas. The company has prepared the following static budget for April: Sales revenue (1000 units) $40000 Variable costs: Direct materials $5000 Direct labour $6000 Overhead $1500 Fixed costs $4000 Net income $23500 During April, Hathaway actually produced and sold 900 umbrellas. What should be Hathaway's net income in April based on a flexible budget? O $20 750 O $21 750 O None of the other alternatives $31 750

Hathaway Inc. produces and sells golf umbrellas to local resorts. Hathaway anticipates April to be a busy month with the sale of 1000 umbrellas. The company has prepared the following static budget for April: Sales revenue (1000 units) $40000 Variable costs: Direct materials $5000 Direct labour $6000 Overhead $1500 Fixed costs $4000 Net income $23500 During April, Hathaway actually produced and sold 900 umbrellas. What should be Hathaway's net income in April based on a flexible budget? O $20 750 O $21 750 O None of the other alternatives $31 750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hansaben
i need the answer quickly
Required information [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 6,400 snowboards and 7,400 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 164,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 4,900 snowboards and 5,400 pounds of carbon fiber in inventory. Carbon fiber costs $13 per pound. Each snowboard requires 0.5 hour of direct labor at $18 per hour. Variable overhead is budgeted at the rate of $8 per direct labor hour. The company budgets fixed overhead of $1,796,000 for the quarter. 4. Prepare the factory overhead budget for the third quarter. BLACK DIAMOND COMPANY Factory Overhead Budget Third Quarter Direct labor hours needed Budgeted variable overhead Budgeted total factory overhead
Great Bubbles, Inc. produces multicolored bubble solution used for weddings and other events. The company sold 70,000 bubble kits during December, and its actual operating income was as follows: (Click the icon to view the actual income statement.) The company's flexible budget income statement for December follows: (Click the icon to view the flexible budget income statement.) Read the requirements. Output units Sales revenue Variable expenses: Cost of goods sold Sales commissions expense Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense Income Statement Performance Report For the month ended December 31 The Actual Flexible Budget Variance Flexible Budget These variances suggest that the marketing department did a Volume Variance job by selling Question 1 of 4 > Master Budget ▼kits than expected, at a Data table sale price than expected. Great Bubbles, Inc. Income Statement Month Ended December 31 $ Sales revenue.. Variable expenses: Cost…
Required information [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 6,900 snowboards and 7,900 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 169,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,400 snowboards and 5,900 pounds of carbon fiber in inventory. Carbon fiber costs $18 per pound. Each snowboard requires 0.5 hour of direct labor at $23 per hour. Variable overhead is budgeted at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,801,000 for the quarter. 2. Prepare the direct materials budget for the third quarter. BLACK DIAMOND COMPANY Direct Materials Budget Units to produce Budgeted units sales for month Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total…
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,400) Wages and salaries ($2,400 + $0.40g) Shipping ($0.55q) Utilities ($1,240) Quilcene Oysteria Flexible Budget For the Month Ended August 31 Other ($470 + $0.01g) Total expenses Net operating income The actual results for August were as follows: Actual pounds Revenue Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income 7,300 $ 30,295 2,555 3,400 5,320 4,015 1,240 543 17,073 $ 13,222 7,300 $ 27,000 2,725 3,260 5,730 3,745 1,050 1,163 17,673 $ 9,327
A company reports net income of $560,000 that Includes depreciation expense of $82,000. Also, cash of $59,000 was borrowed on a 6-year note payable. Based on this data, total cash inflows from operating activities are: Multiple Cholce $478,000. $642,000. $619,000. $701,000.
Shakira Inc. sells drones. The company is in the process of preparing its Selling and Administrative Expense Budget for the year. The following budget data are available: Variable Cost Per Drone Sold Monthly Fixed Cost Sales commissions $0.40 $ 12,000 Shipping 3.20 Advertising 0.25 Executive salaries 60,000 Depreciation on office equipment 4,000 Expenses are paid in the month incurred. If the company has budgeted to sell 20,000 drones in July, how much is the total budgeted selling and administrative expenses for July?
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes. Factory administration The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.20g $4,200+ $1.50g $5,700+ $0.60g $1,500+ $0.10g $18,300+ $2.60g $8,600 $2,500 $13,300+ $0.90g Actual Cost Incurred in March $ 66,360 $ 9,680 $ 8,610 $ 2,130 $ 28,700 $ 9,000 $ 2,500 $ 16,310 Required: 1. Prepare the Production…
Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 5,600 snowboards and 6,600 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 156,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 4,100 snowboards and 4,600 pounds of carbon fiber in inventory. Carbon fiber costs $21 per pound. Each snowboard requires 0.5 hour of direct labor at $26 per hour. Variable overhead is budgeted at the rate of $14 per direct labor hour. The company budgets fixed overhead of $1,788,000 for the quarter.
Lavado Rapido is a Mexican company that owns and operates a large automatic car wash facility near Mexico City. The following table provides data concerning the company’s costs: For example, electricity cost are $1,500 per month plus $0.20 per car washed. The company expects to collect an average of $5.50 per car washed . The company actually washed 9,500 cars in October. Required: Prepare the company’s flexible budget for October.
Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In the summer of 2011, Slatts' management accountant gathered the following data to prepare budgets for 2012: Materials and Labor Requirements Direct materials: Wood 13 board feet (b.f.) per snowboard Fiberglass 11 yards per snowboard Direct manufacturing labor 7 hours per snowboard Slatts' management expects to sell 3,400 snowboards during 2012 at an estimated retail price of $1,000 per board. Furthermore, the CEO expects 2012 beginning inventory of 700 snowboards and would like to end 2012 with 800 snowboards in stock. Direct Materials Inventories Beginning Inventory 1/1/2012 Ending Inventory 12/31/2012 Wood 2,060 b.f. 1,560 b.f. Fiberglass 1,060 yards 2,060 yards Variable manufacturing overhead is $16 per…