Prepare a flexible budget for Cedar Jeans Company and 20,000 units produced. The following is additional information necessary to complete the budget: Variable costs: Direct labor $6.00 per unit Direct materials $8.00 per unit Variable manufacturing costs $2.50 per unit Fixed costs: Supervisor's salaries Rent Depreciation on equipment $80,000 12,000 24,000 Cedar Jeans Company Flexible Budget

Prepare a flexible budget for Cedar Jeans Company and 20,000 units produced. The following is additional information necessary to complete the budget: Variable costs: Direct labor $6.00 per unit Direct materials $8.00 per unit Variable manufacturing costs $2.50 per unit Fixed costs: Supervisor's salaries Rent Depreciation on equipment $80,000 12,000 24,000 Cedar Jeans Company Flexible Budget

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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Jase Manufacturing Co.'s static budget at 7,700 units of production includes $30,800 for direct labor and $3,080 for electric power. Total fixed costs are $41,500. At 10,700 units of production, a flexible budget would show a.variable costs of $47,080 and $41,500 of fixed costs b.variable costs of $33,880 and $41,500 c.variable and fixed costs totaling $75,380 d.variable costs of $47,080 and $57,669 of fixed costs
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 qis the number of labor-hours worked in a month: Cost Formulas $16.60g $4, 200 + $1.60g $5,300 + $0.70g $1,700 + $0.30g $18,500 $2.90g $8, 300 $2,500 $13,100 + $0.80g Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory adeinistration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Equipnent depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 66,380 $ 9,940 $ 8,560 $ 3,140 $ 29,810 $ 8,700 $2,500 $ 15,610 Required: 1. Prepare the Production…
Miller and Sons' static budget for 10,500 units of production includes $43,700 for direct materials, $53,400 for direct labor, variable utilities of $8,000, and supervisor salaries of $15,700. A flexible budget for 12,900 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. Oa. total variable costs of $120,800 Ob. the same cost structure in total Oc. direct materials of $53,689, direct labor of S65,606, utilities of $9,829, and supervisor salaries of $18,840 Od. direct materials of $53,689, direct labor of $65,606, utilities of $9,829, and supervisor salaries of $15,700
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Perez Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost $ 8.98 per unit $ 3.40 per unit Fixed manufacturing cost Fixed selling and administrative cost $ 2,000 total $ 600 total Perez planned to produce and sell 2,300 units. Actual production and sales amounted to 2,600 units. Required a. Prepare the pro forma income statement in contribution format that would appear in a master budget. b. Prepare the proforma Income statement in contribution format that would appear in a flexible budget. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the pro forma income statement in contribution format that would appear in a master budget. PEREZ MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 2,300 Units
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Sunshine Dresses is preparing a flexible budget for the month of October, using a contribution margin format. Staff have completed the budget if 800 units of product are produced and sold. You must complete the budget if 1,000 units of product are produced and sold. You are given the following information for the flexible budget if 800 units of product are produced and sold: Sales = $64,000 Variable Costs = 12,000 Fixed Costs, regardless of sales level, = $50,000 You are asked to prepare the flexible budget if 1,000 units of product are produced and sold. What is the contribution margin at that level of sales? 2.Sunshine Dresses planned to use 2,000 yards of cotton costing $7 per yard to make 1,000 dresses. In actually making 1,000 dresses, the company used 1,800 yards that cost $8 per yard. Calculate the direct materials quantity variance. Specify dollars and cents. Be sure to specify if a negative or positive number. 3.Using the following information…
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