A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Fixed Indirect materials P140,000 Depreciation P60,000
Q: Variable rate per unit Total fixed costs Indirect materials $0.90 Supplies $0.70 Indirect labor…
A: Manufacturing overhead: All the overhead that is incurred in making an item is called…
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A: Solution a: Total nos of budgeted direct labor hours = (60000*0.50) + (80000*2) = 30000 + 160000…
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Q: Accounting A company’s planned activity level for next year is expected to be 50,000 machine hours.…
A: The flexible budget is prepared to estimate the expenses at various level of production.
Q: A company’s planned activity level for next year is expected to be 100000 machine hours. At this…
A: In the flexible budget prepared at the 80000 machine hours, the fixed costs shall remain the same…
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A: Cash Budget is Prepared so that there is no shortages of cash when it comes at the time of…
Q: During the current year, Chudrick Corporation expects to produce 10,000 units and has budgeted the…
A: Total costs = variable costs + fixed costs = $1,100,000 + $100,000 = $1,200,000
Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…
A: Formula: Applied overheads = Actual machine hours x Per hour rate
Q: TJH bases its manufacturing overhead budget on machine hours. Estimated machine hours are 10,000 for…
A: Formula: Variable manufacturing overhead = Estimated machine hours x Per machine hour
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A: Following are the calculation of budget for factory overhead:
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A: Direct materials: It is the basic input required to manufacture the finished products. The…
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A: Lets understand the basics. Management prepares budget in order to estimate future profit and loss…
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A:
Q: Indigo Company expects to produce 1,440,000 units of Product XX in 2022. Monthly production is…
A: Solution Flexible budget is the budget which change according to level of volume changes.Its…
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A: As the questions asked have more than 1 question, the first question is answered. If you want the…
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A: Solution a: Computation of standard variable overhead per direct labor hour Particulars…
Q: XYZ Company expects to produce and sell 15,000 units during the next year with no beginning or…
A: Budgeted cost of goods sold = Direct material + Direct labor + variable manufacturing overhead costs…
Q: A company's planned activity level for next year is expected to be 100,000 machine hours. At this…
A: Total Budgeted variable costs = Indirect materials + indirect labor + factory supplies =…
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A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
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A: Solution: Calculation of cost of goods sold: Particulars Amount ($) Opening Direct raw…
Q: XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During…
A: Actual hours = applied overhead / predetermined overhead application rate = P363,000 /0.30 =…
Q: A company s planned activity level for next year is expected to be 100000 machine hourS. At this…
A: Manufacturing overhead cost is the sum of all the indirect costs which are incurred while…
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A: Income statement: Under this Statement showing the company’s performance over a period of time by…
Q: XYZ Company expects to produce and sell 15,000 units during the next year with no beginning or…
A: Budgeted cost of goods sold = Direct material + Direct labor + variable manufacturing overhead costs…
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A: Solution: Manufacturing overhead cost affect the cash budget = Amount of cash manufacturing…
Q: Pinacle Corp. budgeted $700,000 of overhead cost for the current year. Actual overhead costs for the…
A: Plantwide factory overhead rate = Budgeted overhead cost / Budgeted machine hours
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Q: cost formula for the maintenance department of the Eifel Co. is $6,500 per month plus $3.50 per…
A: Concept used: Total maintenance cost is calculated by adding the variable cost to the fixed cost.
Q: The master budget of Sheridan Company shows that the planned activity level for next year is…
A: Total variable costs = Indirect labor + Machine supplies + Indirect materials = $720000 + 180000 +…
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A: Given that: Total overhead of Fabrication department = $420,000 Total overhead of Assembly…
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A: Budget means the expected value of future. Budget is not affected by the actual value as it is…
Q: Steed Co. budgets production of 150,000 units in the next year. Steed’s CFO expects that each unit…
A: Total Budget for factory overhead = Budgeted units x Budgeted Hours per unit x overhead rate per…
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A: Labour cost is the amount to be paid to labour for hours worked. In labour cost budget, labour cost…
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A: Factory Overhead Rate Per Hour = Factory Overhead / Direct Labor Hours Factory Overhead Rate Per…
Q: During the current year, OutlyTech Corp. expected to sell 22,600 telephone switches. Fixed costs for…
A: Solution.. Selling price per unit = $3,300 Variable cost per unit = $1,440 Contribution margin…
Q: Ceder Company has compiled the following data for the upcoming year: • Sales are expected to be…
A: 1. Particulars Amount Direct material used (13000*4*3.3) $171600 Direct labor (13000*1.5*16)…
Q: XYZ Company expects to produce and sell 15,000 units during the next year with no beginning or…
A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…
Q: 1. Using a single-rate allocation and budgeted usage, how much will each department be allocated?…
A: Each department is allocated cost in the single-rate allocation of cost based on usage of budgeted…
Q: Company’s fixed factory overhead is budgeted at $300,000 for the year on an expected annual…
A: Variance analysis is an analysis used to recognize the difference between actual behavior and…
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A: Flexible budget: Flexible budget varies with the change in the activity level. It is usually…
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A: A flexible budget is a budget that includes all the flexibility and change in the output. In…
Q: Kent Corporation developed the following budgeted costs for the current year: Direct materials…
A: Pre-determined overhead allocates rate: It is the rate of allocating the expected overheads to the…
Q: Wilde Corporation budgeted the following costs for the production of its one and only product for…
A: Total Variable cost = 1,140,000+795,000+840,000+360,000 Total Variable cost = 3,135,000 Total fixed…
Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…
A: Formula: Overhead rate per hour = Total estimated overhead / Total estimated Machine hours
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A: Budgeting is a process of planning future expenses and income for a particular period. Budgeting…
Q: Hill Company plans to produce 300,000 units next year. The production budget for this level of…
A: The costs can be differentiate as fixed and variable cost. The fixed costs remains constant at every…
Q: facturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct…
A: Allocated Manufacturing Overheads= $18 x 4000…
A flexible budget prepared at the 75,000 machine hours level of activity would show total
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- Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
- A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: Four welding units, with a lease cost of 12,000 per year per unit Six welding employees each paid a salary of 50,000 per year (A total of 9,000 welding hours are supplied by the six workers.) Welding supplies: 300 per job Welding hours: Three hours used per job During the year, the activity operated at 90 percent of capacity and incurred the actual activity and resource costs, shown on page 676. Lease cost: 48,000 Salaries: 315,000 Parts and supplies: 805,000 Required: 1. Prepare a flexible budget formula for the welding activity using welding hours as the driver. 2. Prepare a performance report for the welding activity. 3. What if welders were hired through outsourcing and paid 30 per hour (the welding equipment is provided by Foy)? Repeat Requirement 1 for the outsourcing case.At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
- Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?Each unit requires direct labor of 2.2 hours. The labor rate is $11.50 per hour and next years direct labor budget totals $834.900. How many units are included in the production budget for next year?Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
- Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: a. Finished goods inventory on January 1 is 32,000 units, each costing 166.06. The desired ending inventory for each month is 80% of the next months sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next months production needs. This is exactly the amount of material on hand on December 31 of the prior year. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is 14.25. d. Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.) e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.) f. The unit selling price of the subassembly is 205. g. All sales and purchases are for cash. The cash balance on January 1 equals 400,000. The firm requires a minimum ending balance of 50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement j. Cash budget 2. CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master budgeting process. Ask when the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate budget. Is the budgetary process participative? Also, find out how budgets are used for performance analysis. Write a summary of the interview.Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.TIB makes custom guitars and prepared the following sales budget for the second quarter It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000. Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30. 2018.