Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

Question

Want to see the full answer?

Answer 1

Question

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Eminem Industries estimates its manufacturing overhead to be $750,000 and its direct labor costs to be $600,000 for year 4. Eminem worked three jobs for the year. Job 4-1, which was sold during year 4, had actual direct labor costs of $180,000. Job 4-2, which was completed but not sold at the end of the year, had actual direct labor costs of $320,000. Job 4-3, which is still in work-in-process inventory, had actual direct labor costs of $140,000. The actual manufacturing overhead for year 4 was $785,000. Manufacturing overhead is applied on the basis of direct labor costs. a) How much overhead was applied to each job in year 4? b) What was the over-or underapplied manufacturing overhead for year 4?

HELP

Bridgeport Electronics completes job #389, which has a standard of 450 labor hours at a standard rate of $24.75 per hour. The job was completed in 480 hours, and the average actual labor rate was $23.90 per hour. What is the labor efficiency (quantity) variance? (A negative number indicates a favorable variance and a positive number indicates an unfavorable variance.) Answer

Answer 2

Question

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Answer 6

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Answer 7

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Answer 8

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Answer 9

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Answer 10

c)

To determine

The reason for the different estimates by two officers

Answer 11

c)

To determine

The reason for the different estimates by two officers

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 14 - Prob. 1Q Ch. 14 - Prob. 2Q Ch. 14 - 3.What are the three levels of planning? Explain...Ch. 14 - 4.What is the primary factor that distinguishes...Ch. 14 - 5.What is the advantage of using a perpetual...Ch. 14 - Prob. 6Q Ch. 14 - Prob. 7Q Ch. 14 - 8. Ken Shilov, manager of the marketing...Ch. 14 - Prob. 9Q Ch. 14 - 10.What is the normal starting point in developing...

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

Solution Summary: The author explains the reason for the different estimates by two officers. The element of forecasting because it cannot be accurate at 100%.

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

The reason for the different estimates by two officers

Want to see the full answer?

Chapter 14 Solutions

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

Solution Summary: The author explains the reason for the different estimates by two officers. The element of forecasting because it cannot be accurate at 100%.

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

The reason for the different estimates by two officers

Want to see the full answer?

Chapter 14 Solutions

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%