TJH bases its manufacturing overhead budget on machine hours. Estimated machine hours are 10,000 for the quarter. NUBD estimates its variable manufacturing overhead costs at P7 per machine hour. NUBD projects its fixed manufacturing overhead costs for the quarter to be P16,000 including P5,000 depreciation. By how much will manufacturing overhead costs affect the cash budget for the quarter?

TJH bases its manufacturing overhead budget on machine hours. Estimated machine hours are 10,000 for the quarter. NUBD estimates its variable manufacturing overhead costs at P7 per machine hour. NUBD projects its fixed manufacturing overhead costs for the quarter to be P16,000 including P5,000 depreciation. By how much will manufacturing overhead costs affect the cash budget for the quarter?

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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Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price per unit $ 30 Variable expense per unit $ 19 Fixed expense per month $ 9,570 Unit sales per month 1,020 Required: 1. What is the company’s margin of safety? (Do not round intermediate calculations.) 2. What is the company’s margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)
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