Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales.       Flexible Budget   100,000 80,000 90,000 Sales $3,570,000 $fill in the blank 1 $fill in the blank 2 Cost of Goods Sold       Direct Material $1,000,000 $fill in the blank 3 $fill in the blank 4 Direct Labor 1,000,000 fill in the blank 5 fill in the blank 6 Variable Manufacturing Overhead 230,000 fill in the blank 7 fill in the blank 8 Fixed Manufacturing Overhead 80,000 fill in the blank 9 fill in the blank 10 Cost of Goods Sold $2,310,000 $fill in the blank 11 $fill in the blank 12 Gross Profit $1,260,000 $fill in the blank 13 $fill in the blank 14 Variable Sales and Administrative Expenses 100,000 fill in the blank 15 fill in the blank 16 Fixed Sales and Administrative Expenses 930,000 fill in the blank 17 fill in the blank 18 Income Before Taxes $230,000 $fill in the blank 19 $fill in the blank 20 Taxes 69,000 fill in the blank 21 fill in the blank 22 Net Income/Loss $161,000 $fill in the blank 23 $fill in the blank 24

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 12PA: Before the year began, the following static budget was developed for the estimated sales of 100,000....
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Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales.

 
 
 
Flexible Budget
  100,000 80,000 90,000
Sales $3,570,000 $fill in the blank 1 $fill in the blank 2
Cost of Goods Sold      
Direct Material $1,000,000 $fill in the blank 3 $fill in the blank 4
Direct Labor 1,000,000 fill in the blank 5 fill in the blank 6
Variable Manufacturing Overhead 230,000 fill in the blank 7 fill in the blank 8
Fixed Manufacturing Overhead 80,000 fill in the blank 9 fill in the blank 10
Cost of Goods Sold $2,310,000 $fill in the blank 11 $fill in the blank 12
Gross Profit $1,260,000 $fill in the blank 13 $fill in the blank 14
Variable Sales and Administrative Expenses 100,000 fill in the blank 15 fill in the blank 16
Fixed Sales and Administrative Expenses 930,000 fill in the blank 17 fill in the blank 18
Income Before Taxes $230,000 $fill in the blank 19 $fill in the blank 20
Taxes 69,000 fill in the blank 21 fill in the blank 22
Net Income/Loss $161,000 $fill in the blank 23 $fill in the blank 24
Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use
this information to prepare a flexible budget for 80,000 and 90,000 units of sales.
Flexible Budget
100,000
80,000
90,000
Sales
$3,570,000 $
$
Cost of Goods Sold
Direct Material
$1,000,000
Direct Labor
1,000,000
Variable Manufacturing Overhead
230,000
Fixed Manufacturing Overhead
80,000
Cost of Goods Sold
$2,310,000 $
Gross Profit
$1,260,000
Variable Sales and Administrative Expenses
100,000
Fixed Sales and Administrative Expenses
930,000
Income Before Taxes
$230,000 $
Тахes
69,000
Net Income/Loss
$161,000 $
Transcribed Image Text:Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,570,000 $ $ Cost of Goods Sold Direct Material $1,000,000 Direct Labor 1,000,000 Variable Manufacturing Overhead 230,000 Fixed Manufacturing Overhead 80,000 Cost of Goods Sold $2,310,000 $ Gross Profit $1,260,000 Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 930,000 Income Before Taxes $230,000 $ Тахes 69,000 Net Income/Loss $161,000 $
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