General Accounting Marchi Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion.The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. TheInn's overhead budget for the most recent month appears below:Activity levelVariable overhead costs:SuppliesLaundryFixed overhead costs:65 guests$ 156364Utilities250Salaries and wages4.480Depreciation1,330Total overhead cost$6,580The Inn's variable overhead costs are driven by the number of guests. What would be thetotal budgeted overhead cost for a month if the activity level is 70 guests?

Step 1: Define Overhead BudgetThe Overhead Budget is a financial plan developed to anticipate or…

Answered: Marchi Family Inn is a bed and…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 1R

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Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level Variable overhead costs: 90 guests Supplies Laundry Fixed overhead costs: $ 234 315 Utilities 220 Salaries and wages 4,290 2,680 Depreciation Total overhead cost $7,739 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 99 guests? (Round your intermediate calculations to 2 decimal places.)
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Eastside 25,000 $360,000 8,100 Westside 6,250 $ 240,000 2,700 $ 99,000 $ 108,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Required A Required B Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 600,000 10,800 $ 207,000 $360,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your answer to 2…
Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: Budget Actual 7,600 hours 6,100 hours Direct labor hours Machine hours 7,200 hours 6,300 hours Depreciation on salespeople's autos $23,000 $23,000 Indirect materials $48,500 $50,500 Depreciation on trucks used to deliver uniforms to customers solla $13,000 $70,000 $40,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $72,500 $42,000 Customer service hotline $19,000 $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements 1odel tba 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers usA acco
Ever Clean Company provides gutter cleaning services to residential clients. Overhead is allocated based on direct labor-hours (DLH). The owner, Joanne Clark, estimates that her gutter cleaners will work a total of 1,000 jobs during the year. Each job averages 600 feet of gutter surface and requires 12 direct labor-hours. Clark pays her gutter cleaners $15 per hour. The following table presents the budgeted overhead costs for 2018: Supplies ($6.50 per DLH) Fixed costs (to support capacity of 12,000 DLH) Indirect labor Depreciation Other Total budgeted costs The direct labor budget (in hours) is closest to O A. 12,000 Variable costs O B. 1,000 O C. 180,000 $ 78,000 25,000 17,000 24,000 $144,000
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Eastside 25,000 $ 270,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 180,000 2,700 $ 81,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 450,000 10,800 $ 180,000 $ 270,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your answer to 2…
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Staff costs General operating costs Eastside 25,000 $ 330,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 220,000 2,700 $ 99,000 Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Predetermined overhead rate Total 31,250 $ 550,000 10, 800 Complete this question by entering your answers in the tabs below. $ 198,000 $ 330,000 per client Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your…
A company has two operating departments: Retail Shops and Online Shop. Each of the operating departments uses the services of the company's two service departments: Admin and HR. Additionally, the Admin and HR departments use the services of each other. Data concerning the past year are as follows: Retail Online Admin HR Total Shops Shop Budgeted overhead costs before any interdepartment cost allocations Support work furnished: For Admin department $250,000 $190,000 $380,000 $470,000 S1,290,000 Number of Admin tasks 90 290 120 For HR department No. of employees 21 62 17 Required (a) Compute the total overhead costs of the operating departments (Retail Shops and Online Shop) after the service department costs of Admin and HR have been allocated using (i) the direct method. (ii) the step-down method. (using the sequence of cost of service provided) (iii) the reciprocal method. (b) Which method would you recommend that the company use to allocate service department costs? Why? You should…
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At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: · Materials purchased: $20,000 o Consumed 80% of the purchased materials · Direct labor: $8,493 · Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per…
Vinubhai
PROBLEM SOLVING: This will help you develop your analytical capabilities and exercise judgement. Instructions: Answer the following questions and provide the necessary requirements. Problem 1 Justine Company budgeted overhead cost'at P180,000 for the current period. In addition, they budgeted costs for factory rent at P215,000, cots for depreciation of office equipment at P12,000 costs for office rent at P92,000, and costs for depreciation of factory equipment at P38,000. All these were based upon estimated machine hours of P80,000. At the end of the period. The factory overhead control account has a balance of P373,875. Actual machine hours were 74,000. Required: 1. Compute the over-underapplied factory overhead for the period. 2. Journalize the over-underapplied factory overhead.

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