The expenses budgeted for production of 10,000 units in a factory are furnished below:OMR. per unit70MaterialLabor25Variable overheads20Fixed overheads (OMR. 1,00,000)Variable expenses (direct)10Selling expenses (10% fixed)13Distribution expenses (20% fixed7Administration expenses (OMR. 50(000)5Total 155Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units.Assume that administration expenses are rigid for all levels of production.

Governments, organizations, and people all use budgets to estimate revenue and expenses for a…

The expenses budgeted for production of 10,000 units in a factory are furnished bel OMR. per Material 70 Labor 25 Variable overheads 20 Fixed overheads (OMR. 1,00,000) Variable expenses (direct) Selling expenses (10% fixed) Distribution expenses (20% fixed Administration expenses (OMR. 50(000) 10 13 7 5 Total 155 Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units. that adminictration rigid fer all lovels of produuction

The expenses budgeted for production of 10,000 units in a factory are furnished bel OMR. per Material 70 Labor 25 Variable overheads 20 Fixed overheads (OMR. 1,00,000) Variable expenses (direct) Selling expenses (10% fixed) Distribution expenses (20% fixed Administration expenses (OMR. 50(000) 10 13 7 5 Total 155 Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units. that adminictration rigid fer all lovels of produuction

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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Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 Insurance Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs H =
The following data is given for the Bahia Company: Budgeted production 1,038 units Actual production 958 units Materials: Standard price per pound $1.819 Standard pounds per completed unit 12 Actual pounds purchased and used in production 11,151 Actual price paid for materials $22,860 Labor: Standard hourly labor rate $14.49 per hour Standard hours allowed per completed unit 4.1 Actual labor hours worked 4,933.7 Actual total labor costs $75,239 Overhead: Actual and budgeted fixed overhead $1,182,000 Standard variable overhead rate $24.00 per standard labor hour Actual variable overhead costs $138,144 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a.$91,098.27 unfavorable b.$91,098.27 favorable c.$43,876.80 unfavorable d.$43,876.80 favorable
(b) Breakthrough Ltd provided the following standard cost card. Its budgeted production and sales for December 2021 were 10,000 units @ TZS 200,000 per unit. Budgeted fixed overheads were Tshs 200 millian. The standard cost card of breakthrough Ltd. TZS Direct material 4 kg of A at Tshs 5,000 per kg 2 kg ol B at Tshs 20,000 per kg Direct labour (5. hours per unit of production at Tshs15,000 per hour) Variable overhead (5 hours at Tshs 5,000 per labour hour) 20,000 40,000 75,000 25.000 Total variable cost 160.000 The company has also provided the actual results for December 2021. (AI the units produced during the period were sold. There is no closing inventory). TZS 000 TZS 000 2,089,500 Sales 10,500 units at Tshs199,000 Direct material A. 40,000kg at Tshs 6,000 per kg B. 23,000kg at Tshs 20,000 per kg Direct Labour 63.000 houcs at Tshs 15,000 per hour Variable overheads 63,000 hours at Tshs 4,000 per hour 240,000 460,000 945,000 252.000 (1,897,000) Actual contribution 192,500 Actual…
The following data are given for Stringer Company: Budgeted production 963 units Actual production 1,070 units Materials: Standard price per ounce $1.78 Standard ounces per completed unit 12 Actual ounces purchased and used in production 13,225 Actual price paid for materials $27,111 Labor: Standard hourly labor rate $14.12 per hour Standard hours allowed per completed unit 5.0 Actual labor hours worked 5,510.5 Actual total labor costs $84,035 Overhead: Actual and budgeted fixed overhead $1,192,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $154,294 Overhead is applied on standard labor hours. Do not round interim calculations. Round your final answer to the nearest dollar. The direct materials price variance is Oa. S8,927 unfavorable Ob. $3,571 unfavorable Oc. $3,571 favorable Od. $8,927 favorable
Yuvwell Corporation's direct labor budget for next year contained the following information: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 8,600 8,500 8,200 8,800 Budgeted direct labor-hours The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $2.75 per direct labor-hour and its total fixed manufacturing overhead is $54,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation of $13,500 per quarter. Required: 1. Prepare the company's manufacturing overhead budget for next year. 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for next year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the company's manufacturing overhead budget for next year. Note: Round "Variable manufacturing overhead rate" answers to 2 decimal places. Variable manufacturing…
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Selected information from the direct materials budget of Perry Incorporated is provided here: First Second Third Fourth Required production in units of finished goods 15,000 12,500 7,500 15,000 Units of raw materials needed per unit of finished goods 4 4 4 4 Units of raw materials needed to meet production 60,000 50,000 30,000 60,000 Desired units of ending raw materials inventory ? ? ? 24,000 Total units of raw materials needed Units of beginning raw materials inventory 16,000 ? ? ? Units of raw materials to be purchased ? ? ? ? Unit cost of raw materials $ 5 $ 5 $ 5 $ 5 Cost of raw materials to be purchased ? ? ? ? Perry, Incorporated desires to maintain the ending inventory of raw materials at 40 percent of the next quarter's raw material needs. What is the cost of raw materials to be purchased in the first quarter? multiple choice $300,000 $320,000 $380,000 $400,000
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Compute the dollar amount of Direct Material "A" to be used in production during the year, given the following info: Budgeted Sales for the year = 640,000 units Estimated Beg. Inventory = 108,000 units Desired End. Inventory = 90,000 units The Quantities of Direct Materials expected to be used for each Unit of finished product are as follows: Material A = 0.5 lb. per unit @ $0.60 per lb. Material B 1.0 lb. per unit @ $1.70 per lb. Material C= 1.2 lb. per unit @ $1.00 per lb. O $186,600.00 $210,600.00 O$181,200.00 $240,000.00
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Cherokee Manufacturing Company established the following standard price and cost data: Sales price $ 12.00 per unit Variable manufacturing cost 7.20 per unit Fixed manufacturing cost 3,600 total Fixed selling and administrative cost 1,200 total Cherokee planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units. Required Prepare the pro forma income statement in contribution format that would appear in a master budget. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
he following data is given for the Bahia Company: Budgeted production 1,091 units Actual production 974 units Materials: Standard price per pound $1.846 Standard pounds per completed unit 10 Actual pounds purchased and used in production 9,448 Actual price paid for materials $19,368 Labor: Standard hourly labor rate $14.80 per hour Standard hours allowed per completed unit 4.8 Actual labor hours worked 5,016.1 Actual total labor costs $76,496 Overhead: Actual and budgeted fixed overhead $1,055,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $140,451 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is