template. Part 1- Capital Budgeting (Chapter 6) Questions Please use the following information to answer questions 1- 6 Corp makes wooden tables and is creating its 2017 capital budget. It expects to sell 40 tables in 2017 at $150 per table. you must show your calculations. Feel free to use the example in the notes as a Additional Information for 2017: DM per table: 6 board feet (b.f.) per table at $2.00 per b.f. DL per table: 2 DLH per table at $25 per DLH O/H is applied at a rate of $4 per DLH (and allocated O/H = actual O/H) DM Inventory: BB = 50 b.f. of wood DEI 75 b.f. of wood WIP Inventory BB = 0 EB = 0 For simplicity, assume costs and revenue per table are the same for previous years. Assume variable operating expenses are $12 per unit sold and fixed operating expenses are $90. Additional FG Inventory BB = 5 tables DEI 15 tables 1) What is budgeted revenue for 2017 in dollars? 2) How many tables (FG units) should be produced in 2017? 3) What is the budgeted O/H cost per unit? 4) What is budgeted Cost of Goods Sold (in dollars) for 2017? 5) What are budgeted Operating Expenses (period costs) in dollars for 2017? 6) What is estimated operating income for 2017? Questions those manufactured in 2017 or in
template. Part 1- Capital Budgeting (Chapter 6) Questions Please use the following information to answer questions 1- 6 Corp makes wooden tables and is creating its 2017 capital budget. It expects to sell 40 tables in 2017 at $150 per table. you must show your calculations. Feel free to use the example in the notes as a Additional Information for 2017: DM per table: 6 board feet (b.f.) per table at $2.00 per b.f. DL per table: 2 DLH per table at $25 per DLH O/H is applied at a rate of $4 per DLH (and allocated O/H = actual O/H) DM Inventory: BB = 50 b.f. of wood DEI 75 b.f. of wood WIP Inventory BB = 0 EB = 0 For simplicity, assume costs and revenue per table are the same for previous years. Assume variable operating expenses are $12 per unit sold and fixed operating expenses are $90. Additional FG Inventory BB = 5 tables DEI 15 tables 1) What is budgeted revenue for 2017 in dollars? 2) How many tables (FG units) should be produced in 2017? 3) What is the budgeted O/H cost per unit? 4) What is budgeted Cost of Goods Sold (in dollars) for 2017? 5) What are budgeted Operating Expenses (period costs) in dollars for 2017? 6) What is estimated operating income for 2017? Questions those manufactured in 2017 or in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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template.
Part 1- Capital Budgeting (Chapter 6) Questions
Please use the following information to answer questions 1-6
Corp makes wooden tables and is creating its 2017 capital budget. It expects to sell 40 tables in 2017 at
$150 per table.
DM Inventory:
BB = 50 b.f. of wood
DEI = 75 b.f. of wood
your calculations. Feel free to use the example in the notes as a
Additional Information for 2017:
DM per table: 6 board feet (b.f.) per table at $2.00 per b.f.
DL per table: 2 DLH per table at $25 per DLH
O/H is applied at a rate of $4 per DLH (and allocated O/H = actual O/H)
WIP Inventory
BB = 0
EB = 0
FG Inventory
BB = 5 tables
DEI = 15 tables
For simplicity, assume costs and revenue per table are the same for
previous years.
Assume variable operating expenses are $12 per unit sold and fixed operating expenses are $90.
1) What is budgeted revenue for 2017 in dollars?
2) How many tables (FG units) should be produced in 2017?
3) What is the budgeted O/H cost per unit?
octions
those manufactured in 2017 or in
4) What is budgeted Cost of Goods Sold (in dollars) for 2017?
5) What are budgeted Operating Expenses (period costs) in dollars for 2017?
6) What is estimated operating income for 2017?
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