Flexible Budget: It is the plan that is prepared at different levels of production. In this budget company changes the revenue and expenses as per change in output. It is also known as variable budget. To prepare: Flexible budget

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 8, Problem 3E

To determine

Flexible Budget:

It is the plan that is prepared at different levels of production. In this budget company changes the revenue and expenses as per change in output. It is also known as variable budget.

To prepare: Flexible budget

Expert Solution & Answer

Explanation of Solution

Flexible budget at 6000, 7000 and 8000 units.

T Company
Flexible Budget
For the quarter ended March 31, 2017
Particulars	Variable cost per unit ($)	Total fixed Cost ($)	Sale of 6,000 units	Sale of 7,000 units	Sale of 8,000 units
			Amount ($)	Amount ($)	Amount ($)
Production (units)			6000	7000	8000
Sales	400		2,400,000	2,800,000	3,200,000
Less : Variable cost
Direct material	40		240,000	280,000	320,000
Direct Labor	70		420,000	490,000	560,000
Production supplies	25		150,000	175,000	200,000
Sales commission	20		120,000	140,000	160,000
Packaging	22		132,000	154,000	176,000
Total variable costs	177		1,062,000	1,239,000	1,416,000
Contribution margin	223		1,338,000	1,561,000	1,784,000
Less: Fixed Costs
Plant manager salary		65,000	65,000	65,000	65,000
Advertising		125,000	125,000	125,000	125,000
Administrative salaries		85,000	85,000	85,000	85,000
Depreciation		35,000	35,000	35,000	35,000
Insurance		20,000	20,000	20,000	20,000
Office Rent		36,000	36,000	36,000	36,000
Total fixed costs		366,000	366,000	366,000	366,000
Income from operations			1,428,000	1,605,000	1,782,000

Table(1)

Thus, income from 6000 units is $1,428,000, 7000 units is $1,605,000 and 8000 units is 1,782,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement: Sales = $5,250,000; Costs = $2, 173,000; Other expenses = $187,400; Depreciation expense = $79,000; Interest expense= $53,555; Taxes $76,000; Dividends $69,000. $136,700 worth of new shares were also issued during the year and long-term debt worth $65,300 was redeemed. a) Compute the cash flow from assets b) Compute the net change in working capital (325 marks)

Answer 2

Question

Chapter 8, Problem 3E

To determine

Flexible Budget:

It is the plan that is prepared at different levels of production. In this budget company changes the revenue and expenses as per change in output. It is also known as variable budget.

To prepare: Flexible budget

Expert Solution & Answer

Explanation of Solution

Flexible budget at 6000, 7000 and 8000 units.

T Company
Flexible Budget
For the quarter ended March 31, 2017
Particulars	Variable cost per unit ($)	Total fixed Cost ($)	Sale of 6,000 units	Sale of 7,000 units	Sale of 8,000 units
			Amount ($)	Amount ($)	Amount ($)
Production (units)			6000	7000	8000
Sales	400		2,400,000	2,800,000	3,200,000
Less : Variable cost
Direct material	40		240,000	280,000	320,000
Direct Labor	70		420,000	490,000	560,000
Production supplies	25		150,000	175,000	200,000
Sales commission	20		120,000	140,000	160,000
Packaging	22		132,000	154,000	176,000
Total variable costs	177		1,062,000	1,239,000	1,416,000
Contribution margin	223		1,338,000	1,561,000	1,784,000
Less: Fixed Costs
Plant manager salary		65,000	65,000	65,000	65,000
Advertising		125,000	125,000	125,000	125,000
Administrative salaries		85,000	85,000	85,000	85,000
Depreciation		35,000	35,000	35,000	35,000
Insurance		20,000	20,000	20,000	20,000
Office Rent		36,000	36,000	36,000	36,000
Total fixed costs		366,000	366,000	366,000	366,000
Income from operations			1,428,000	1,605,000	1,782,000

Table(1)

Thus, income from 6000 units is $1,428,000, 7000 units is $1,605,000 and 8000 units is 1,782,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 3E

To determine

Flexible Budget:

It is the plan that is prepared at different levels of production. In this budget company changes the revenue and expenses as per change in output. It is also known as variable budget.

To prepare: Flexible budget

Expert Solution & Answer

Explanation of Solution

Flexible budget at 6000, 7000 and 8000 units.

T Company
Flexible Budget
For the quarter ended March 31, 2017
Particulars	Variable cost per unit ($)	Total fixed Cost ($)	Sale of 6,000 units	Sale of 7,000 units	Sale of 8,000 units
			Amount ($)	Amount ($)	Amount ($)
Production (units)			6000	7000	8000
Sales	400		2,400,000	2,800,000	3,200,000
Less : Variable cost
Direct material	40		240,000	280,000	320,000
Direct Labor	70		420,000	490,000	560,000
Production supplies	25		150,000	175,000	200,000
Sales commission	20		120,000	140,000	160,000
Packaging	22		132,000	154,000	176,000
Total variable costs	177		1,062,000	1,239,000	1,416,000
Contribution margin	223		1,338,000	1,561,000	1,784,000
Less: Fixed Costs
Plant manager salary		65,000	65,000	65,000	65,000
Advertising		125,000	125,000	125,000	125,000
Administrative salaries		85,000	85,000	85,000	85,000
Depreciation		35,000	35,000	35,000	35,000
Insurance		20,000	20,000	20,000	20,000
Office Rent		36,000	36,000	36,000	36,000
Total fixed costs		366,000	366,000	366,000	366,000
Income from operations			1,428,000	1,605,000	1,782,000

Table(1)

Thus, income from 6000 units is $1,428,000, 7000 units is $1,605,000 and 8000 units is 1,782,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 3E

To determine

Flexible Budget:

It is the plan that is prepared at different levels of production. In this budget company changes the revenue and expenses as per change in output. It is also known as variable budget.

To prepare: Flexible budget

Expert Solution & Answer

Explanation of Solution

Flexible budget at 6000, 7000 and 8000 units.

T Company
Flexible Budget
For the quarter ended March 31, 2017
Particulars	Variable cost per unit ($)	Total fixed Cost ($)	Sale of 6,000 units	Sale of 7,000 units	Sale of 8,000 units
			Amount ($)	Amount ($)	Amount ($)
Production (units)			6000	7000	8000
Sales	400		2,400,000	2,800,000	3,200,000
Less : Variable cost
Direct material	40		240,000	280,000	320,000
Direct Labor	70		420,000	490,000	560,000
Production supplies	25		150,000	175,000	200,000
Sales commission	20		120,000	140,000	160,000
Packaging	22		132,000	154,000	176,000
Total variable costs	177		1,062,000	1,239,000	1,416,000
Contribution margin	223		1,338,000	1,561,000	1,784,000
Less: Fixed Costs
Plant manager salary		65,000	65,000	65,000	65,000
Advertising		125,000	125,000	125,000	125,000
Administrative salaries		85,000	85,000	85,000	85,000
Depreciation		35,000	35,000	35,000	35,000
Insurance		20,000	20,000	20,000	20,000
Office Rent		36,000	36,000	36,000	36,000
Total fixed costs		366,000	366,000	366,000	366,000
Income from operations			1,428,000	1,605,000	1,782,000

Table(1)

Thus, income from 6000 units is $1,428,000, 7000 units is $1,605,000 and 8000 units is 1,782,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 3E

To determine

Flexible Budget:

It is the plan that is prepared at different levels of production. In this budget company changes the revenue and expenses as per change in output. It is also known as variable budget.

To prepare: Flexible budget

Expert Solution & Answer

Explanation of Solution

Flexible budget at 6000, 7000 and 8000 units.

T Company
Flexible Budget
For the quarter ended March 31, 2017
Particulars	Variable cost per unit ($)	Total fixed Cost ($)	Sale of 6,000 units	Sale of 7,000 units	Sale of 8,000 units
			Amount ($)	Amount ($)	Amount ($)
Production (units)			6000	7000	8000
Sales	400		2,400,000	2,800,000	3,200,000
Less : Variable cost
Direct material	40		240,000	280,000	320,000
Direct Labor	70		420,000	490,000	560,000
Production supplies	25		150,000	175,000	200,000
Sales commission	20		120,000	140,000	160,000
Packaging	22		132,000	154,000	176,000
Total variable costs	177		1,062,000	1,239,000	1,416,000
Contribution margin	223		1,338,000	1,561,000	1,784,000
Less: Fixed Costs
Plant manager salary		65,000	65,000	65,000	65,000
Advertising		125,000	125,000	125,000	125,000
Administrative salaries		85,000	85,000	85,000	85,000
Depreciation		35,000	35,000	35,000	35,000
Insurance		20,000	20,000	20,000	20,000
Office Rent		36,000	36,000	36,000	36,000
Total fixed costs		366,000	366,000	366,000	366,000
Income from operations			1,428,000	1,605,000	1,782,000

Table(1)

Thus, income from 6000 units is $1,428,000, 7000 units is $1,605,000 and 8000 units is 1,782,000.

Answer 6

Chapter 8, Problem 3E

To determine

Flexible Budget:

It is the plan that is prepared at different levels of production. In this budget company changes the revenue and expenses as per change in output. It is also known as variable budget.

To prepare: Flexible budget

Expert Solution & Answer

Explanation of Solution

Flexible budget at 6000, 7000 and 8000 units.

T Company
Flexible Budget
For the quarter ended March 31, 2017
Particulars	Variable cost per unit ($)	Total fixed Cost ($)	Sale of 6,000 units	Sale of 7,000 units	Sale of 8,000 units
			Amount ($)	Amount ($)	Amount ($)
Production (units)			6000	7000	8000
Sales	400		2,400,000	2,800,000	3,200,000
Less : Variable cost
Direct material	40		240,000	280,000	320,000
Direct Labor	70		420,000	490,000	560,000
Production supplies	25		150,000	175,000	200,000
Sales commission	20		120,000	140,000	160,000
Packaging	22		132,000	154,000	176,000
Total variable costs	177		1,062,000	1,239,000	1,416,000
Contribution margin	223		1,338,000	1,561,000	1,784,000
Less: Fixed Costs
Plant manager salary		65,000	65,000	65,000	65,000
Advertising		125,000	125,000	125,000	125,000
Administrative salaries		85,000	85,000	85,000	85,000
Depreciation		35,000	35,000	35,000	35,000
Insurance		20,000	20,000	20,000	20,000
Office Rent		36,000	36,000	36,000	36,000
Total fixed costs		366,000	366,000	366,000	366,000
Income from operations			1,428,000	1,605,000	1,782,000

Table(1)

Thus, income from 6000 units is $1,428,000, 7000 units is $1,605,000 and 8000 units is 1,782,000.

Answer 7

Chapter 8, Problem 3E

To determine

Flexible Budget:

It is the plan that is prepared at different levels of production. In this budget company changes the revenue and expenses as per change in output. It is also known as variable budget.

To prepare: Flexible budget

Answer 8

Expert Solution & Answer

Explanation of Solution

Flexible budget at 6000, 7000 and 8000 units.

T Company
Flexible Budget
For the quarter ended March 31, 2017
Particulars	Variable cost per unit ($)	Total fixed Cost ($)	Sale of 6,000 units	Sale of 7,000 units	Sale of 8,000 units
			Amount ($)	Amount ($)	Amount ($)
Production (units)			6000	7000	8000
Sales	400		2,400,000	2,800,000	3,200,000
Less : Variable cost
Direct material	40		240,000	280,000	320,000
Direct Labor	70		420,000	490,000	560,000
Production supplies	25		150,000	175,000	200,000
Sales commission	20		120,000	140,000	160,000
Packaging	22		132,000	154,000	176,000
Total variable costs	177		1,062,000	1,239,000	1,416,000
Contribution margin	223		1,338,000	1,561,000	1,784,000
Less: Fixed Costs
Plant manager salary		65,000	65,000	65,000	65,000
Advertising		125,000	125,000	125,000	125,000
Administrative salaries		85,000	85,000	85,000	85,000
Depreciation		35,000	35,000	35,000	35,000
Insurance		20,000	20,000	20,000	20,000
Office Rent		36,000	36,000	36,000	36,000
Total fixed costs		366,000	366,000	366,000	366,000
Income from operations			1,428,000	1,605,000	1,782,000