CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 9, Problem 9.16E
To determine

Concept introduction:

Budgets can be divided into two basic categories; static budget and flexible budget. A static budget or planning budget is prepared for a fixed volume of sales and the values of the static budget do not change with the change in volume of sales. On the other hand, a flexible budget is prepared at different levels of sale and the values of the flexible budget change with the change in the level of sales. 

To prepare: The flexible budget performance report.

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1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. 2 Of the total insurance, 66% relates to the Factory Plant & Equipment & 33% relates to general & administrative costs. 3 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs. Required: i) Calculate the raw material used in production by Unique School Supplies & Uniforms. ii) What is the total factory overhead costs incurred by Unique School Supplies & Uniforms during the period? iii) Determine the prime cost & conversion cost of the knapsacks manufactured. iv) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2024, clearly showing total manufacturing cost & total manufacturing costs to account for. v) What is the selling price per knapsack if Unique School Supplies & Uniforms manufactured 925 knapsacks for the Debe High School and uses a mark-up of 25% on cost? vi) How does the format of the income statement for a…
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