Problem 2Meals Company is a startup company producing and delivering boxed meals to tailgate parties.The company operates four months, September through December, during a fiscal year. Assumethere are zero costs during the ensuing eight months. The company owner has forecasted thefollowing sales and financial data for the upcoming fiscal year:Meal boxes sold20,000 total boxes; the sales forecast for the meals sold by monthfollows:Forecast5,0005,0008,0002,000SeptemberOctoberNovemberMeal box sales priceFood costWagesDecember$5.00$2.00 per boxFood preparerOwner$10 per hour; 0.05 hours per box$20,000 salary$1,000 + $0.10 per box$3.50 per gallon20 miles per gallon400 total miles driven delivering meals$4,000$6,000UtilitiesFuelFacilitiesMiscellaneousRequired(a) Prepare an annual budget for the fiscal yearAnnual Budget $RevenueExpensesTotal ExpensesNOI7 (b) Assume the entire company sales and costs occur during a 4 month fall period. Assumethere are zero costs during the ensuing eight months. The actual ales of meals through theend of November were as follows:Actual4,5005,8009,0002,000SeptemberOctoberNovemberDecember (forecast)Assume the company owner uses a flexible budget to analyze cost. The following resultsfor November were recorded:Actual miles driven: 125 milesThe static budget and actual results for November were as follows:NovemberFlexFlexedBudgetActualBudgetVarianceRevenue$40,000$44,500ExpensesSalaries and Wages$9,000$9,700$17,200Raw Materials$16,000$1,050$18$1,200$30UtilitiesFuel$1,000$1,500$1,000$1,500FacilitiesMiscellaneousTotal Expenses$28,568$30,630NOI$11,433$13,870Required: Compute November's flexible budget and the flexed variance (variancebetween actual and flexed budget). Enter the results into the above table. Showyour calculations below.

Budget: Budget is a systematic estimation of expenses and revenues for a given period. It includes…

Meals Company is a startup company producing and delivering boxed meals to tailgate parties. The company operates four months, September through December, during a fiscal year. Assume there are zero costs during the ensuing eight months. The company owner has forecasted the following sales and financial data for the upcoming fiscal year: Meal boxes sold 20,000 total boxes; the sales forecast for the meals sold by month follows: September October November Forecast 5,000 5,000 8,000 2,000 December $5.00 $2.00 per box Meal box sales price Food cost Wages Food preparer Owner $10 per hour; 0.05 hours per box $20,000 salary $1,000 + $0.10 per box $3.50 per gallon 20 miles per gallon 400 total miles driven delivering meals $4,000 $6,000 Utilities Fuel Facilities Miscellaneous Required (a) Prepare an annual budget for the fiscal year Annual Budget $ Revenue Expenses Total Expenses NOI

Meals Company is a startup company producing and delivering boxed meals to tailgate parties. The company operates four months, September through December, during a fiscal year. Assume there are zero costs during the ensuing eight months. The company owner has forecasted the following sales and financial data for the upcoming fiscal year: Meal boxes sold 20,000 total boxes; the sales forecast for the meals sold by month follows: September October November Forecast 5,000 5,000 8,000 2,000 December $5.00 $2.00 per box Meal box sales price Food cost Wages Food preparer Owner $10 per hour; 0.05 hours per box $20,000 salary $1,000 + $0.10 per box $3.50 per gallon 20 miles per gallon 400 total miles driven delivering meals $4,000 $6,000 Utilities Fuel Facilities Miscellaneous Required (a) Prepare an annual budget for the fiscal year Annual Budget $ Revenue Expenses Total Expenses NOI

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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