E9-2 (Algo) Preparing Flexible Budget for Manufacturing Costs [LO 9-2]Olive Company makes silver belt buckles. The company's master budget appears in the first column of the table.Required:Complete the table by preparing Olive's flexible budget for 4,100, 6,100, and 7,100 units.Note: Round your intermediate calculations to 2 decimal places.Master Budget Flexible Budget Flexible Budget Flexible Budget(6,100 Units)(7,100 Units)(5,100 Units)(4,100 Units)Direct materials$1,020Direct labor2,550Variable manufacturing overhead1,530Fixed manufacturing overhead17,800Total manufacturing cost$22,900

Step 1: Determine the Variable Cost per Unit (VCPU) for the variable costs (direct materials, direct…

Answered: E9-2 (Algo) Preparing Flexible Budget…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.12E: Cost of goods sold budget The controller of Pueblo Ceramics Inc. wishes to prepare a cost of goods...

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Jheng Company has the following revenue and cost budgets for the two products it sells: Plastic GlassFrames Frames Sales Price P10.00 P15.00Direct Materials 2.00 3.00Direct Labor 3.00 5.00 Fixed Overhead 3.00 4.00Net Income per unit P2.00 P3.00Budgeted Unit Sales 100,000 300,000 The budgeted unit sales equal the current unit demand, and total fixed overhead for the year is budgetedatP975,000. Assume that the company plans to maintain the same proportional mix. In numerical calculations,Jheng rounds to the nearest centavos and unit. 1. The total number of units Jheng needs to produce and sell to break even is: a. 150,000 units c. 177,273 units b. 354,545 units d. 300,000 units2. The total number of units needed to break even if the budgeted direct labor costs are P2 for plastic frames instead of P3 isa. 154,028 units c. 156,000 unitsb. 144,444 units d. 146,177 units3. Net income computed using variable costing would exceed net income computed using absorption costing if: a. Units sold…
9-ABC LLC has prepared a budget for the production of 100000 units. As per the cost records the prime cost per unit OMR 15.25, Works overheads ( 40% fixed and 60% variable) OMR 8per unit and administrative overheads (80% fixed) OMR 2. If actual production is 120000 units, what is the cost of production per unit at revised budget for 120000 units? a. OMR 26.08 b. None of the given options c. OMR 24.44 d. OMR 25.25
At the beginning of the period, the Cutting Department budgeted direct labor of P155,000, direct material of P165,000 and fixed factory overhead of P15,000 for 9,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? * A. P416,000 B. P370,556 C. P368,889 D. P335,000
Blue Devil Inc. sells only one single product in both Michigan and Indiana. The company is preparing its master budget for April 2021. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) Required: a. What should total sales revenue be if Michigan and Indiana estimate sales of 8,000 and 20,000 units, respectively, and the unit selling price is $55? b. If the beginning finished goods inventory is an estimated 2,500 units and the desired ending inventory is 1,000 units, how many units should be produced? c. What dollar amount of material should be purchased at $3 per pound if each unit of product requires 2 pounds, and beginning and ending materials inventories should be 3,000 and 4,000 pounds, respectively?
E9-3A Budget Preparation Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $30? b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 7,000 units, how many units should be produced? c. What dollar amount of materials should be purchased at $2 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively? d. How much direct labor cost should be incurred if each unit produced requires 0.5 hours at an…
Adams Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.90 Materials cost 9.00 Labor cost 4.50 Overhead cost 5.50 Selling, general, and administrative costs 7.00 Planned fixed costs Manufacturing overhead $ 133,000 Selling, general, and administrative 45,000 Adams planned to make and sell 22,000 copies of the book. Required: a-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements assuming production volumes of 21,000 and 23,000 units. Determine the sales and variable cost volume variances assuming the volume is actually 23,000 units. Indicate whether the variances are favorable (U) select "None" if there is no effect (i.e zero variance) Master budget Flexible budgets Flexible budgets Volume variances Number of units…
Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.30 Materials cost 8.30 Labor cost 4.00 Overhead cost 5.40 Selling, general, and administrative costs 6.80 Planned fixed costs Manufacturing overhead $ 130,000 Selling, general, and administrative 46,000 Vernon planned to make and sell 39,000 copies of the book. Required: a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 38,000 and 40,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 40,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Budgeted income statement and supporting budgets The budget director of Jupiter Helmets Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for May: Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to be $4200. and work in process at the end of May is desired to be $3800.
Cost of goods sold budget The controller of Pueblo Ceramics Inc. wishes to prepare a cost of goods sold budget for April. The controller assembled the following information for constructing the cost goods sold budget: Use the preceding information to prepare a cost of goods sold budget for April.
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?
Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per unit, direct labor of $2.50 per unit, and manufacturing overhead of $1.25 per unit. Fixed costs are $49,000. What would be the budgeted amounts for 33,000 and 35,000 units?
Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. 2. Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was 75,200 (for 16,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.

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