Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $54,080 per month, which includes depreciation of $3,840. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,200 direct labor-hours will be required in October. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for October should be:     $4.60 per direct labor-hour     $20.30 per direct labor-hour     $16.90 per direct labor-hour     $21.50 per direct labor-hour

Q: A company has provided a sales budget for the next four months. It bases its production budget on…

A: The budget is prepared to estimate the future requirements.

Q: Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct…

A: Cash disbursement for fixed manufacturing overhead = Total fixed manufacturing overhead -…

Q: McMichael Inc. collects 30% of its sales on account in the month of the sale and 70% in the month…

A: A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

Q: Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month…

A: Budgeted Cash receipts would be calculated by multiplying the Percentage of cash received from the…

Q: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours.…

A: Variable manufacturing overhead = Direct labor hours*Variable overhead rate Variable manufacturing…

Q: Wallace Inc. collects 90% of its sales on account in the month of the sale and 10% in the month…

A: Cash collection from September sales = September sales on credit x 10% = $276,000 x 10% = $27,600

Q: The Adams Company, a merchandising firm, has budgeted its activity for November according to the…

A: Given the following information: Sales were at $450,000, all for cash. Merchandise inventory on…

Q: The selling and administrative expense budget of Ruffing Corporation is based on budgeted unit…

A: The cash budget is prepared to record the cash transactions incurred during the period.

Q: Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month…

A: 25% sales were collected in month of sale and 75% in month fallowing the month of sale.

Q: The Brotherhood Company has produced the following information from which a cash budget for the…

A: Given that, Selling price per unit = K50000 Variable cost per unit : Material = K26000 Labor = K8000…

Q: a. Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the…

A: a. Budget for factory overhead For October Particulars Amount Variable factory overhead…

Q: Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company…

A: The budget is prepared by the management based on experience. Based on the budget, It is helpful for…

Q: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours.…

A: Manufacturing Overhead Budget This budget contains all manufacturing costs except  direct materials…

Q: he Adams Company, a merchandising firm, has budgeted its activity for November according to the…

A: Budget is the quantitative course of action for future period. These are the forecasts or estimates…

Q: Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month…

A: A cash budget is prepared to estimate the total cash received and total cash disbursement. It is…

Q: The Adams Company, a merchandising firm, has budgeted its activity for November according to the…

A: The cash budget is prepared to record the cash receipts and cash payments during the period.

Q: he manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The…

A: Solution:- Calculation of The February cash disbursements for manufacturing overhead on the…

Q: The Adams Company, a merchandising firm, has budgeted its activity for November according to the…

A: Cash disbursements will include payment to purchase the goods, and selling & administrative…

Q: Schuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales.…

A: Expected cash disbursements are an important part of any company's monthly financial picture. They…

Q: Invent Inc. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor…

A: Here in this question, we are required to calculate predetermine overhead rate for November.…

Q: The Ellis Company, a retail company, has budgeted its activity for September according to the…

A: net income -  sales  less cost of goods sold  less indirect expenses  = net income.   given that,…

Q: e manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The…

A: manufacturing overhead includes direct material, direct labour and other variable manufacturing…

Q: Petrini Corporation makes one product and it provided the following information to help prepare the…

A: Ending raw material inventory required for February = Raw material production need for March x 10% =…

Q: Rudick Corporation is an oil well service company that measures its output by the number of wells…

A: Activity variance for revenue = (Units sold - Planned units sold) x Revenue per unit

Q: China Company expects to have a cash balance of $40,000 on January 1, 2017. Relevant monthly budget…

A:

Q: The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to…

A: Solution:- Budgeted cash receipts for December as follows:-

Q: The Adams Company, a merchandising firm, has budgeted its activity for November according to the…

A: Budgeting (Cash budget) is a process of estimating cash receipts and payments for the upcoming…

Q: Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month…

A: Cash Budget: Cash budget is a budget that is prepared to estimate the cash inflows and cash outflows…

Q: Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: The Panda Company has budgeted its activity for October according to the following information:…

A: Given the following information: Sales are budgeted at $392,000 All sales are for cash All…

Q: Haylock Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The…

A: GIVEN : Direct labour hours = 8,300 Per direct labour hour = $1.40 Fixed manufacturing overhead per…

Q: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours.…

A: Cash disbursements for manufacturing overhead are calculated by summing the total variable…

Q: Schuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales.…

A: Depreciation is a non-cash expense which means it is included in the selling and administrative…

Q: Assume a company’s direct labor budget for July estimates 10,000 labor-hours to meet the month’s…

A: Manufacturing overheads means all type of indirect costs and expenses which are incurred for…

Q: The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The…

A: Formula: Fixed overhead per Direct labor hour = Fixed manufacturing overhead / Direct labor hours

Q: The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit…

A: The question is related to Budgetory Control.The selling and administrative expense budget of…

Q: McMichael Inc. collects 90% of its sales on account in the month of the sale and 10% in the month…

A: Given information:   Budgeted sales in the month of September $495,000 Budgeted sales in the…

Q: The Adams Company, a merchandising firm, has budgeted its activity for November according to the…

A: Budgeted net income is prepared by considering estimated revenue and estimated cash and non-cash…

Q: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours.…

A: Depreciation expense is not paid in cash. So the depreciation of $3,750 will not be included in the…

Q: The Adams Company, a merchandising firm, has budgeted its activity for November according to the…

A: Budgeted cash disbursement - Budgeted cash receipts are the amount of cash the company expects to…

Q: The manufacturing overhead budget at Formica Corporation is based on budgeted direct labor-hours.…

A: The manufacturing overhead is the indirect costs which are involved in the product process. It…

Q: At the beginning of the period, the Cutting Department budgeted direct labor of $139,000, direct…

A: Given data Budgeted direct labor = $139,000 Budgeted direct materials = $169,000 Fixed factory…

Q: Jenner Company developed its annual manufacturing overhead budget for its master budget for 2008 as…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to…

A: Cash receipt is the amount received from cash sales and collection from the customers.

Q: Capstone Inc. collects 80% of its sales on account in the month of the sale and 20% in the month…

A: Budgeted cash receipts is the amount of cash received on account of cash sales and amount received…

Q: Petrini Corporation makes one product and it provided the following information to help prepare the…

A: given that, Budgeted cost of raw materials purchases in February = $222180 budgeted accounts payable…

Q: Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct…

A: Cash disbursement is the amount of actual cash paid by the company to pay the operating expense and…

Q: Broker Corporation’s budget shows straight-line depreciation on machinery of P 516,000 based on the…

A: The flexible budget is a budget that is prepared for the actual level of activity achieved during…

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.