Bmgt 321 Chapter 6 Homework

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BMGT 321 Chapter 6 Homework Click Link Below To Buy: MASTER BUDGET AND RESPONSIBILITY ACCOUNTING Problem Solutions 6-16 (15 min.) Sales budget, service setting. In 2014, Rouse & Sons, a small environmental-testing firm, performed 12,200 radon tests for $290 each and 16,400 lead tests for $240 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 10% next year. However, awareness of radon-related health hazards is expected to result in a 6% increase in radon-test volume each year in the near future. Jim Rouse feels that if he lowers his price for lead testing to $230 per test, he will have to face only a 7%…show more content…
2. Calculate the budgeted overhead allocation rates for weaving and dyeing. 3. Calculate the budgeted unit cost of a blue rug for the year. 4. Prepare a revenues budget for blue rugs for the year, assuming Xander sells (a) 200,000 or (b) 185,000 blue rugs (that is, at two different sales levels). 5. Calculate the budgeted cost of goods sold for blue rugs under each sales assumption. 6. Find the budgeted gross margin for blue rugs under each sales assumption. 7. What actions might you take as a manager to improve profitability if sales drop to 185,000 blue rugs? 8. How might top management at Xander use the budget developed in requirements 1–6 to better manage the company? 6-32 (30–40 min.) Revenue and production budgets. (CPA, adapted) The Sabat Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2013, Sabat’s budget department gathered the following data to prepare budgets for 2014: The following direct materials are used in the two products: Projected data for 2014 for direct materials are: Projected direct manufacturing labor requirements and rates for 2014 are: Manufacturing overhead is allocated at the rate of $19 per direct manufacturing labor-hour. Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2014: Required: 1. Revenues budget (in dollars) 2. What questions might the CEO ask

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