Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th
26th Edition
ISBN: 9781337498159
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 22, Problem 22.3CP
Static budget for a service company
A bank manager of City Savings Bank Inc. uses the
| Resources | Budget | Actual |
| Salaries | $200,000 | $200,000 |
| Benefits | 30.000 | 30,000 |
| Supplies | 45,000 | 42,000 |
| Travel | 20,000 | 30,000 |
| Training | 25,000 | 35,000 |
| Overtime | 25,000 | 20,000 |
| Total | $345,000 | $357,000 |
| Excess of actual over budget | $ 12,000 |
- a. What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department manager?
- b. What information does the static budget fail to provide? Specifically, could the budget information be presented differently to provide even more insight for the bank manager?
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Subject: acounting
Step methodProsperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown in the following benefits-provided ranking:
Percentage of Service Used by
Department
Direct Costs
Admin.
Human Resources
Accounting
Checking
Savings
Loans
Administration
$540,000
10
10
30
40
10
Human resources
360,000
10
10
30
20
30
Accounting
300,000
10
10
40
20
20
Checking
630,000
Savings
337,500
Loans
675,000
Compute the total cost for each revenue-generating area of the bank using the step-method of cost allocation.
Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.
Checking
Answer
Savings
Answer
Loans
Answer
Total
Answer
Please show all work step by step calculations! Thank you!
Relevant data from the Poster Company's operating budgets are:
Sales
Direct material purchases
Direct labor
Manufacturing overhead
Selling and administrative expenses
Depreciation included in selling and administrative
Collections from customers
Quarter 1 Quarter 2
Beginning Cash Balance
Add: Cash Receipts
Collections from Customers
$208,480 $211,540
115,300 120,832
75,205 73,298
25,300
23,400
33,400
33,500
1,500
900
Cash payments for purchases
Additional data:
Capital assets were sold in January for $10,000 and $4,400 in May.
Dividends of $4,000 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $39,000.
215,392 240,154
114,290
119,254
Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank.
Other Collections
Total Receipts
Total Available Cash
Less: Cash Payments
Purchase of Direct Material
Direct Labor
Manufacturing Overhead
Selling and…
Chapter 22 Solutions
Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th
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