The Financial Manager of the Grand Dubai Hotel has prepared the following flexed budget for 2024. The Grand Dubai is a large hotel, which can provide up to a maximum of 44,000 guest nights per year. Capacity No of Guests 30,800 35,200 38,600 AED AED AED Direct Costs 462.000 512,000 594,000 Selling overhead 1,918,800 1,938,600 1,958,400 Administration overhead 1,200,000 1,200,000 1,200,000 Total Cost 2,449,800 2,502,600 2,555,400 Due to the recent excessively hot weather, the Sales Manager has suggested that 30,000 guests is a more realistic target for 2024. Based on this, what are the expected total costs for 2024?

The Financial Manager of the Grand Dubai Hotel has prepared the following flexed budget for 2024. The Grand Dubai is a large hotel, which can provide up to a maximum of 44,000 guest nights per year. Capacity No of Guests 30,800 35,200 38,600 AED AED AED Direct Costs 462.000 512,000 594,000 Selling overhead 1,918,800 1,938,600 1,958,400 Administration overhead 1,200,000 1,200,000 1,200,000 Total Cost 2,449,800 2,502,600 2,555,400 Due to the recent excessively hot weather, the Sales Manager has suggested that 30,000 guests is a more realistic target for 2024. Based on this, what are the expected total costs for 2024?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 4CE: Foy Company has a welding activity and wants to develop a flexible budget formula for the activity....

See similar textbooks

Similar questions

Bizet plc has prepared the following flexible budget for the coming year. The Budgeted level of activity is 7,500 units. Sales 250000 Direct material 75000 Direct labour. 60000 Variable overheads 30000 Fixed overheads. 45000 Profit. 20000 If the budget is flexed to a level of activity of 10,000 units, what would the total budgeted cost be? a) $280000 b) $123750 c) $265000 d) $168750
Chelsea Clinic projected the following budget information for 2020: Total FFS Visit Volume 90,000 visits Payer Mix: Blue Cross Highmark Reimbursement Rates: Blue Cross Highmark Variable Costs Resource Inputs: Labor Supplies Resource Input Prices: Labor Supplies Fixed Costs (overhead, plant, and equipment) 40% 60% $25 per visit $20 per visit 48,000 total hours 100,000 total units $25.00 per hour $1.50 per unit $500,000 a. Construct Chelsea Clinic’s operating budget for 2020. b. Discuss how each key budget assumption might result in a budget variance, and name the variance that would be used to examine results associated with each assumption.
SABIC is preparing its master budget for the coming year 2023. Relevant data pertaining to its budgets are as follows: ◆Sales: expected sales volume to be 4,000 units in the first quarter with 250-unit increases in each succeeding quarter. The sales price will be $60 per unit. ◆ Production: it needs an ending inventory of 20% of next quarter's budgeted sales volume. ◆ Direct material: The manufacture of each unit requires 3 pounds of raw materials, and the expected cost per pound is $3. SABIC maintains an ending inventory of raw materials equal to 10% of the next quarter's production requirements, and the desired ending direct materials amount is 1,050 pounds for the fourth quarter of 2023. ◆ Direct labor: At SABIC, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $9. Overhead: 1. Variable costs: On the basis of the rates per direct labor hour, the variable overhead costs are indirect materials $1.00, indirect labor…
The master budget of Vaughn Manufacturing shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor Machine supplies Indirect materials Depreciation on factory building Total manufacturing overhead $810000 O $1666000. O$1514000. O $1704000. O $1420000. 190000 230000 190000 $1420000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of
Current Attempt in Progress The master budget of Waterway Industries shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $790000 Machine supplies 280000 Indirect materials 230000 Depreciation on factory 160000 building Total manufacturing overhead $1460000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of O $1752000. O $1592000. O $1720000. O $1460000. SUPPO
Thank you
Blossom Company expects to produce 1,200,000 units of product XX in 2022. Monthly production is expected to range from 70,000 to 100,000 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $3, direct labour $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision $1. Prepare a flexible manufacturing budget for the relevant range value using increments of 15,000 units. (List variable costs before fixed costs.) BLOSSOM COMPANY Monthly Flexible Manufacturing Budget $ $ $
Kipp Industries has the following production budget for 2022: 2022 Quarter 1 3,000 Units 2022 Quarter 2 8,000 Units 2022 Quarter 3 5,000 Units 2022 Quarter 4 6,000 Units 2023 Quarter 1 5,000 Units Each unit requires 2.5 hours of direct labor and workers are paid $20 per hour. Prepare a Direct Labor Budget for each of the quarters of 2022. (No need to show the total for the year).
The master budget of Sheridan Company shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $720000 Machine supplies 180000 Indirect materials 150000 Depreciation on factory building 90000 Total manufacturing overhead $1140000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of a. $1278000. b. $1350000. c. $1368000. d. $1140000.
Shamrock Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data: Product LN 35 Product LN 40 Sales budget Expected volume in units 400,000 239,000 Unit selling price $31 $34 Production budget Desired ending finished good units 33,000 21,000 Beginning finished goods units 21,000 14,000 Direct materials budget: Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 49,000 16,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.50 0.70 Direct labour rate per hour $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the…
Shamrock Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data: Product LN 35 Product LN 40 Sales budget Expected volume in units 400,000 239,000 Unit selling price $31 $34 Production budget Desired ending finished good units 33,000 21,000 Beginning finished goods units 21,000 14,000 Direct materials budget: Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 49,000 16,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.50 0.70 Direct labour rate per hour $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the…
Pronghorn Company expects to produce 1,248,000 units of Product XX in 2027. Monthly production is expected to range from 83,200 to 124,800 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $5, and overhead $6. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 20,800 unit increments. (List variable costs before fixed costs.) PRONGHORN COMPANY Monthly Flexible Manufacturing Budget For the Year 2027 69 69 1A > > > > > > > +A LA