The following data relates to a company's operating budget for its next operating yearSales price per unit (E)26Sales volume units)39,000Costs:Materials ()30,000Labour (E)33.800Energy (E37,000Depreciation (E)105,000The budget has been prepared using the following assumptionsMaterials costs are variable.Labour costs are semi-variable with a fxed element of 15,000.Depreciation is a foxed cost.An allowance for an energy price increase of 11% has already been inchuded in the enegY costsThe company now wishes to revise the data to incorporate the following updated assumptions:Selling prices will be reduced by B%The sales vokume will increase by 10%The rise in the energy prices should be revised to 7%What will be the company's new materials cost for the year?

Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

The following data relates to a company's operating budget for its next operating year Sales price per unit () 26 Sales volume junits 39,000 Costs Materials 30,000 Labour E 33800 Energy 37.000 Depreciation D 105.000 The budget has been prepared using the following assunptions Materials costs are variable Lubour costs are semi-varable with a fwed element of E15000 Depreciation is a fed cost. An allowance for an energy price increase of 11% has aready been inchaded in the enegy costs The company now wishes to revise the data to incorperate the following updated assumptions Selling prices wi be reduced by s The sales volume will increase by 10% The rise in the energy prices should be revised to 7% What will be the company's new materials cost for the year?

The following data relates to a company's operating budget for its next operating year Sales price per unit () 26 Sales volume junits 39,000 Costs Materials 30,000 Labour E 33800 Energy 37.000 Depreciation D 105.000 The budget has been prepared using the following assunptions Materials costs are variable Lubour costs are semi-varable with a fwed element of E15000 Depreciation is a fed cost. An allowance for an energy price increase of 11% has aready been inchaded in the enegy costs The company now wishes to revise the data to incorperate the following updated assumptions Selling prices wi be reduced by s The sales volume will increase by 10% The rise in the energy prices should be revised to 7% What will be the company's new materials cost for the year?

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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Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 4.009 $150 + $0.75q The company's planned level of activity was 2,110 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget? Multiple Choice C $7,840 $8,140 $8,340 $ 3,000 $8,440
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