7.3 Case Study

Question 3 ANSWER ALL PARTS OF THE QUESTION 1. Please explain the characteristics of the relevant cost and give two examples of the irrelevant cost.                                                                                                                                                                                                      2. “The Traditional budget enables better cost control within firms”, discuss the previous statement with giving two examples of the main alternative budgets systems that you learn this year.                                                                                           3. London Manufacturing Limited developed the following standard costs for direct material and direct labour for one of their major products, the 40 litres heavy-duty plastic container. Each container requires the following: Types of Cost Standard quantity Standard price Direct labour 0.2 hours £18 per hour       During March, London…

View prevlous attempt Exercise 13-44 (Algo) Budgeting in a Service Organization: Solve for Unknown (LO 13-7) Jolly Cleaners offers residential and commercial cleaning services. Clients pay a fixed monthly fee for the service, but can cancel the service at the end of any month. In addition to the employees who do the actual cleaning, the firm includes two managers who handle the administrative tasks (human resources, accounting, and so on) and one dispatcher, who assigns the cleaning employees to jobs on a daily basis, On average, residential clients pay $280 per month for cleaning services and the commercial clients pay $1,400 per month. A typical residential client requires 10 hours a month for cleaning and a typical commercial client requires 50 hours a month. In March, Jolly Cleaners had 40 commercial clients and 200 residential clients. Cleaners are paid $10 per hour and are only paid for the hours actually worked. Supplies and other varlable costs are estimated to cost $5 per hour…

a and b are the correct answers I just need the answer for c question The company employs its own workforce

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Question 3.3   Sneaky Snacky Squirrel Inc. has a budget of $900,000 in 2021 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $80,000 in variable costs. The new method will require $40,000 in training costs and $100,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units.  Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units…

1. Explain why a company needs these budgets used in #2 of your homework and how will they help the manager prepare for the next year? For example: ordering inventory, increasing or decreasing material costs so their sales will increase and cost decrease (labor, raw materials, or costs that pertain to operations)? Make sure to explain what each budget tells the manager.

Analyze Adventure Park's staffing budget Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles. Adventure Park estimates staff for both school days and nonschool days. Nonschool days are higher attendance days than school days. The number of expected vehicles for each day is as follows: School Days Nonschool Days Number of vehicles per day 3,000 8,000 Number of days per year 165 200 Parking fees are $10 per vehicle. Each parking lot employee is paid $110 per day. a. Determine the annual parking lot staff budget for school days, nonschool days, and total. School Days Nonschool Days Total Total parking lot staff expense $ b. Determine the…

Analyze Adventure Park’s staffing budget Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles. Adventure Park estimates staff for both school days and nonschool days. Nonschool days are higher attendance days than school days. The number of expected vehicles for each day is as follows:

Current Attempt in Progress The production manager at ABC Inc. is responsible for formulating the budget for his department. He will be evaluated on his ability to control costs. After considerable thought, he arrives at his best estimate of costs, and then adds a further 10% to the projections. Chances are he has Inflated the cost projections because that is the way it has always been done. O conservative accounting practise requires that he not under report expenses. O by overestimating expenses, it will make it easier for him to come in under budget and receive a favourable evaluation. Onone of the above.

Preparing a Flexible Budget for Performance Reporting Suppose you receive the following performance report from the accounting department for your first month as plant manager for a new company. Your supervisor, the vice president of manufacturing, has concerns that the report does not provide an accurate picture of your performance in the area of cost control.

Hello tutor please provide correct answer general Accounting

a and b are the correct answers I just need the answer for question c The company employs its own sales force

*****PLS NEW ANS****** What are the advantages of preparing the flexible budget? The period is over, and the actual results are known. Is this just extra work for the staff? Please provide 3 advantages with proper explanation of each.

Which of the following statements is true about a cash budget?   Question 35 options:   Cash budget provides a means of estimating how long it will take for a product to reach the break-even point and, therefore, how much money will be needed to launch a new product.   Cash budget summarizes the cash flows into and out of a firm over a period of time.   Cash budget focuses on the importance of maximizing a product’s per unit contribution.   Cash budget helps an entrepreneur understand the concept of EBITDA break-even and how to calculate this point for each product a business’s produce.

QUESTION 57 True Love Inc., is pretty heavy into the use of budgets. Which of the following statements is TRUE of the budgeting process of True-Love and in fact, any company that uses budgets? O Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated. O Ha company carefully plans for its future, there will be no need to make modifications during the budget period O R shows the actual performance of the business O It is a continuous process that encourages communication. QUESTION S8 Opportunity cost is the benefit O given up by purchasing goods at a price lower than its total manufacturing cost O gven up by choosing an alternate course of action O received by selling goods on behalf of another division O received by seling goods to one of the other divisions within the company QUESTION 59 Last year. T-Bal Company spent $36.000 on employee training to improve customer service. The cost and time spent on traning is…

Problem 2 The manager of the Spartan Land Restaurant is developing the operating budget for next vear using the following financial information from the current year: Current Year's Next Year's Percentage Increase (Decrease) Next Year's Amount ($) Item Amount Food revenue 00$973,000 4% $112,500 2% Beverage revenue Food cost 000. 36% 1% Beverage cost Labor (including benefits) Other operating costs 23% d ate (1%) $298,000 (2%) 16% same Encar Fixed costs $70,000 same a. What is the current year's budgeted profit (loss)? b. Develop next year's budget: indicate the profit (loss).

TB Problem Qu. 9-401 (Algo) Cryan Jeep Tours operates jeep tours... Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: Actual guests Actual jeeps Revenue Expenses: Revenue Tour guide wages. Vehicle expenses. Administrative expenses In May, the company budgeted for 497 guests and 202 jeeps. The company's income statement showing the actual results for the month appears below: Cryan Jeep Tours Income Statement For the Month Ended May 31 Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Guests Jeeps Revenue Expenses: Fixed element per month $0 $0 Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income $ 5,600 $ 2,100 512 197 $ 87,854 Required:…

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Ethics in ActionThe director of marketing for Starr Computer Co., Megan Hewitt, hadthe following discussion with the company controller. Cam Morley, onJuly 26 of the current year: Megan: Cam, it looks like I'm going to spend much less than indicated onmy July budget.Cam: I'm glad to hear it. Megan: Well. I'm not so sure it's good news. I'm concerned that thepresident will see that I'm under budget and reduce my budget in thefuture. The only reason I look good is because we delayed an advertising campaign. Once the campaign hits in September, I'm sure my actualexpenditures will go up. You see, we are also having our sales conventionin September. Having the advertising campaign and the convention atthe same time is going to kill my September numbers. Cam: I don't think that's anything to worry about. We all expect somevariation in actual spending month to month. What's really important isstaying within the budgeted targets for the year. Does that look as if it'sgoing to be a problem?…

Current Attempt in Progress The salespeople at Kingbird, a notebook manufacturer, commonly pressured operations managers to keep costs down so the company could give bigger discounts to large customers. Donald, the operations supervisor, leaked the $0.90 total unit cost to salespeople, who were thoedince that was slightly lower than the previous year's unit cost. Budgets were not yet finalized for the upcoming year, so it was unhat the target unit cost would be. Donald knew the current year's operating capacity was two million notebooks, and Kingbirded and sold just that many. The detailed breakdown of the $0.90 total unit cost is as follows. (4) Direct material Direct labor Variable overhead Fixed overhead Total cost per unit Total fixed costs Gross margin ✓ Your answer is correct. What w ngbird's total fixed costs? If the average selling price was $1.75, how much gross margin did the company generate? Fixed.com Total costerunit Gross margin eTextbook and Media Save for Later $0.10…

Chapter 8: Applying Excel: Exercise (Part 2 of 2) Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Data Budgeted unit sales. Selling price per unit 1 Chapter 8: Applying Excel 2 3 4 5 6 780 9 10 11 12 13 14 56789 15 16 17 18 19 Data Budgeted unit sales A 1 45,000 $7 Year 2 Quarter 2 3 70,000 105,000 Selling price per unit Accounts receivable, beginning balance • Sales collected in the quarter sales are made • Sales collected in the quarter after sales are made • Desired ending finished goods inventory is Finished goods inventory, beginning Raw materials required to produce one unit • Desired ending inventory of raw materials is Raw materials inventory, beginning Raw material costs Raw materials purchases are paid and Accounts payable for raw materials, beginning balance $ $ $ $ B 1 4…

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