TB MC Qu. 3-49 (Algo) Gardner Corporation manufactures skateboards...Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year ispresented below.SalesCost of Sales:Direct MaterialDirect LaborVariable OverheadFixed OverheadGross ProfitSelling and G&A:VariableFixedOperating Incomeere to search$ 310,000210,00084,000160,000Multiple Choice$ 260,000310,000O$ 1,920,000For the coming year, the management of Gardner Corporation anticipates a 10 percent increase in sales, a 12 percent increase in variable costs, and a $51,000increase in fixed costs.764,000$ 1,156,000The break-even point for next year (rounded to the nearest dollar) would be:Note: Do not round intermediate calculations.570,000$ 586,000< Prev6 of 25ONext >37°F Cloudy @ L^1-

The break even sales are calculated as the sales revenue where no profit or loss is incurred. The…

MC Qu. 3-49 (Algo) Gardner Corporation manufactures skateboards... Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales Cost of Sales: Direct Material Direct Labor Variable Overhead Fixed Overhead $ 310,000 210,000 84,000 160,000 $ 1,920,000 $ 260,000 310,000 764,000 $1,156,000 Gross Profit Selling and G&A: Variable Fixed 570,000 $ 586,000 Operating Income For the coming year, the management of Gardner Corporation anticipates a 10 percent increase in sales, a 12 percent increase in variable costs, and a $51,000

MC Qu. 3-49 (Algo) Gardner Corporation manufactures skateboards... Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales Cost of Sales: Direct Material Direct Labor Variable Overhead Fixed Overhead $ 310,000 210,000 84,000 160,000 $ 1,920,000 $ 260,000 310,000 764,000 $1,156,000 Gross Profit Selling and G&A: Variable Fixed 570,000 $ 586,000 Operating Income For the coming year, the management of Gardner Corporation anticipates a 10 percent increase in sales, a 12 percent increase in variable costs, and a $51,000

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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Required information Use the following information for the Problems below. (Algo) Skip to question [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,300 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales $ 3,213,000 Costs Direct materials 1,009,800 Direct labor 244,800 Sales staff commissions 61,200 Depreciation—Machinery 300,000 Supervisory salaries 197,000 Shipping 229,500 Sales staff salaries (fixed annual amount) 245,000 Administrative salaries 534,920 Depreciation—Office equipment 198,000 Income $ 192,780 Problem 21-1A (Algo) Preparing and analyzing a flexible budget LO P1 Required:1&2. Prepare flexible budgets at sales volumes of 14,300 and 16,300 units.3. The company’s business conditions are improving. One possible result is a sales volume of 18,300 units. Prepare a simple budgeted…
Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,539 Direct material purchases 115,290 120,832 Direct labor 75,205 73,299 Manufacturing overhead 25,400 25,400 Selling and administrative expenses 33,400 33,400 Depreciation included in selling and administrative 1,400 1,100 Collections from customers 215,391 240,154 Cash payments for purchases 114,300 119,253 Additional data:Capital assets were sold in January for $9,000 and $4,600 in May.Dividends of $4,400 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $58,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Beginning Cash Balance $fill in the blank 2 $fill in the blank 3 Add: Cash Receipts Collections from…
The following data relates to Coachman Company's budgeted amounts for next year. Budgeted Data: Department 1 Department 2 Overhead costs $ 300,000 $ 400,000 Direct labor hours 60,000 DLH 80,000 DLH Machine hours 1,000 MH 2,000 MH What is the company's plantwide overhead rate if machine hours are the allocation base? (Round your answer to two decimal places.) Multiple Choice $100.00 per MH $150.00 per MH $233.33 per MH $4.90 per MH $5.00 per MH Please dont provide answer in image format thank you
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P23-1A Prepare flexible budget and budget report for manufacturing overhead Bumblebee Company estimates that 300,000 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown below, are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $96,000 Indirect labor $126,000 Depreciation 72,000 Indirect materials 90,000 Insurance 30,000 Repairs 69,000 Rent 24,000 Utilities 72,000 Property taxes 18,000 Lubricants 18,000 $240,000 $375,000 It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours. During October 27,000…
Point, Inc. produces men's shirts. The following budgeted and actual amounts are for 2019: Cost Budget at 3,000 units Actual Amounts at 2,800 units $75,000 87,000 Direct materials Direct labor Fixed overhead Instructions Prepare a performance report for Point, Inc. for the year. Direct materials Direct labor Fixed overhead Total costs F3 + F4 Ⓡ 3 # 4 $ F5 36,000 5 % F6 Budget F7 C Manufacturing Performance Budget Report For the Year Ended December 31, 2019 6 A POINT, INC. Search F8 $75,000 7 & 78,000 34,500 0: Actual F9 60 8 * Differences F/U LG F10 9 ( F11 - 0) F12 + Prt Sc ScrLk Ins = +
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III. Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Estimated overhead Direct labor hours Direct labor cost Machine hours Direct materials Direct labor cost Direct labor hours: Welding $ 220,000 $ 4,500 90,000 5,000 Welding Assembly Finishing Number of machine hours: Welding Assembly Finishing Assembly $ 62,000 10,000 $ 150,000 1,000 Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with…
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