Production and Purchases Budgets in Units At the end of business on June 30, 2017, the PE Rug Company had 150,000 square yards of rugs and 650,000 pounds of raw materials on hand. Budgeted sales for the third quarter of 2017 are: Month Sales July 260,000 sq.yards August 230,000 sq. yards September 190,000 sq.yards October 210,000 sq yards The PE Rug Company wants to have sufficient square yards of finished product on hand at the end of each month to meet 40 percent of the following month's budgeted sales and sufficient pounds of raw materials to meet 30 percent of the following month's production requirements. Five pounds of raw materials are required to produce one square yard of carpeting. Prepare a production budget for the months of July, August, and September and a purchases budget in units for the months of July and August. BE Rug Company

Production and Purchases Budgets in Units At the end of business on June 30, 2017, the PE Rug Company had 150,000 square yards of rugs and 650,000 pounds of raw materials on hand. Budgeted sales for the third quarter of 2017 are: Month Sales July 260,000 sq.yards August 230,000 sq. yards September 190,000 sq.yards October 210,000 sq yards The PE Rug Company wants to have sufficient square yards of finished product on hand at the end of each month to meet 40 percent of the following month's budgeted sales and sufficient pounds of raw materials to meet 30 percent of the following month's production requirements. Five pounds of raw materials are required to produce one square yard of carpeting. Prepare a production budget for the months of July, August, and September and a purchases budget in units for the months of July and August. BE Rug Company

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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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed. For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,000 cars August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost Cost per Car per Month Washed $ 1,300 $4,100 $ 8,000 $ 1,800 $ 1,700 Administrative expenses Total expense Net operating income 8,100 $ 57,300 $ 0.80 $ 0.09 $0.20 $ 0.30 6,900 1,990 1,840 6,860 8,000 2,000 1,840 29,430 $ 27,870 $ 0.03
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what is the formula or equations on how to calculate for spending variance for March 31
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- Flexible and Actual Units (pounds) are given belowCalculate revenue and spending variances for AugustGiven: Revenue 4per poundOn OwnPacking Supplies0.5per poundOyster Bed Maintenance3200flatWages & Salaries2900flat plus0.3 per poundShipping0.8per pound Utilities830flat Other450flat plus0.05per poundFlexible Budget & Actual Results for the Month Ending May 31 ActualFlexibleRev & Spend'gPounds (Q)8, 0008,000Variances(actual flexible) Revenue 35,200 Expenses: Packing Supplies4, 200 Oyster Bed Maintenance3, 100 Wages & Salaries5, 640 Shipping6, 950 Utilities 810 Other980 Total Expenses21, 680 Net Operating Income13, 520 Flexible and Actual Units (pounds) are given below Given: Calculate revenue and spending variances for August Revenue Packing Supplies Oyster Bed Maintenance 4 per pound 0.5 per pound 3200 flat Wages & Salaries 2900 flat-plus 0.3 per pound Shipping Utilities Other 0.8 per pound 830 flat 450 flat-plus 0.05 per pound Flexible Budget & Actual Results for the Month Ending May…
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Actual cars washed. Revenue Expenses: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Electricity Maintenance Wages and salaries. Depreciation Rent Fixed Cost per Month $ 1,200 $ 4,800 $ 8,400 $ 1,900 $ 1,600 Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.70 8,200 $ 55,560 $ 0.08 $ 0.10 $ 0.20 6,170 1,818 1,050 6,780 8,400 2,100 1,662 27,980 $ 27,580 $ 0.02 Required: Calculate the company's revenue and…
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Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April 210 May 140 June 150 July 200 August 160 Each candle costs $ 10. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $2,460. Required: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign.a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. b. Prepare a cash payments budget for the quarter ending June 30.
A flexible budget variance for November 2023 is the difference between the actual expense incurred in November and the amount budgeted at: The actual level of activity achieved in the previous period (October). The planned static budget for the next period (December). The original expected (planned) level of activity in November. The level of activity when operating at maximum capacity. The actual level of activity achieved in November. The original static budget for the previous period (October).