еВook Show Me How Print Item Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 15% of sales Miscellaneous administrative expense $10,000 per month plus 4% of sales Office salaries expense $50,000 per month Customer support expenses $20,000 per month plus 30% of sales Research and development expense $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 5 as a model.) Digital Solutions Inc.

еВook Show Me How Print Item Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 15% of sales Miscellaneous administrative expense $10,000 per month plus 4% of sales Office salaries expense $50,000 per month Customer support expenses $20,000 per month plus 30% of sales Research and development expense $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 5 as a model.) Digital Solutions Inc.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 7CE: Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced...

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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.
[The following information applies to the questions displayedbelow.]We discuss how budgeting for a merchandiser is different thanbudgeting for a manufacturer. Merchandising firms prepare amerchandise purchases budget instead of a production budget. Allof the other budgets prepared by a merchandiser are similar tothose of a manufacturing firm. Knowledge Check 01Cobra, Inc., a sporting goods retailer, estimates to sell 50,000 units in the nextquarter. The beginning inventory is 4,000 units and ending inventory is estimated tobe 20 percent of estimated sales. How many units should be purchased?
For Req #4, Can you please highlight what items I should enter into the budgeted income statement for May? Your spreadsheet has far more lines than what the question does and I am confused. Item2 3.33points ItemSkipped Print Item 2 Problem 8-19 (Algo) Cash Budget; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-8, LO8-9, LO8-10] Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given below: Minden CompanyBalance SheetApril 30 Assets Cash $ 9,200 Accounts receivable 76,250 Inventory 49,750 Buildings and equipment, net of depreciation 228,000 Total assets $ 363,200 Liabilities and Stockholders’ Equity Accounts payable $ 63,750 Note payable 23,900 Common stock 180,000 Retained earnings 95,550 Total liabilities and stockholders’ equity $ 363,200 The company is in the process of preparing a budget for May and has assembled the following data: Sales are budgeted at…
eBook Show Me How Question Content Area Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow: Delmar CompanyBudget Performance Report—Vice President, ProductionFor the Month Ended June 30 Plant Actual Budget OverBudget (Under)Budget Eastern Region $561,500 $561,500 $0 Central Region 400,300 404,300 (4,000) Western Region (g) (h) (i) $(j) $(k) $(l) $(4,000) Delmar CompanyBudget Performance Report—Manager, Western Region PlantFor the Month Ended June 30 Department Actual Budget OverBudget (Under)Budget Chip Fabrication $(a) $(b) $(c) Electronic Assembly 72,400 71,470 930 Final Assembly 114,150 115,070 $(920) $(d) $(e) $(f) $(920) Delmar CompanyBudget Performance Report—Supervisor, Chip FabricationFor the Month Ended June 30 Cost Actual…
Please do not provide answer in image formate thank you. A company produces its main product called Vitamix using one material code named Voom. One unit of the product uses 2.8 litres of Voom. In a given period, the following budget data was provided: Opening stock Closing stock Vitamix (units) 16,200 18,400 Voom (litres) 34,800 42,600 The company’s purchases budget was 674,200 litres of Voom in the period. Required: Calculate the budget sales
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price per unit$ 28Variable expense per unit$ 17Fixed expense per month$ 9,790Unit sales per month1,040 Required: 1. What is the company’s margin of safety? (Do not round intermediate calculations.) 2. What is the company’s margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)
If anyone can help with these - I am stuck on these 2 Prepare an operating expenses budget for June. Classify the expenses as either selling or administrative expenses. Prepare a budgeted income statement for June. The budget director of Asada 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 June: Estimated sales for June: Product E: 96,000 units at $18 per unit Product F: 43,500 units at $26 per unit Estimated inventories at June 1: Direct materials: Finished products: Material TY‑1: 2,500 lbs. Product E: 5,400 units at $11 per unit Material AA‑5: 3,200 lbs. Product F: 2,100 units at $15 per unit Desired at June 30. Direct materials: Finished products: MaterialTY‑1: 2,8001bs.…
Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Line Item Description Value Sales commissions 10% of sales Advertising expense 17% of sales Miscellaneous administrative expense $8,000 per month plus 4% of sales Office salaries expense $53,000 per month Customer support expenses $22,000 per month plus 28% of sales Research and development expense $78,000 per month This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, and $1,200,000. (Use Exhibit 4 as a model.) Enter all amounts as positive numbers. Line Item Description Amount Amount Amount Total sales $400,000 $900,000 $1,200,000 Variable…
Practice : (see attachemnt) please address parts B, C, D please show any calculations for reference a) What is meant by the term flexible budget? What role do flexible budgets play in evaluating performance? The cost accountant for Bradley, Inc., prepared the following monthly performance report relating to the Finishing Department: Budgeted Production Actual Production number units: 6000 units 6500 units Direct materials: $90,000 $99,600 Direct labor: $48,000 $55,200 Variable Manufacturing Overhead: $6,000 $9,000 Fixed Manufacturing Overhead: $66,000 $64,200 What would the flexible budget amounts be for each of the following: Direct materials Direct labor Variable manufacturing overhead Compute the…
2. Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data:
Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 17% of sales Miscellaneous administrative expense $12,000 per month plus 3% of sales Office salaries expense $52,000 per month Customer support expenses $20,000 per month plus 30% of sales Research and development expense $78,000 per month This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Prepare a flexible selling and administrative expenses budget for October for sales volumes of $600,000, $800,000, and $1,200,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.
Bean There Inc. manufactures coffee makers. Selected budget and actual information for 2020 are provided below: Budget Information Actual Information Units sold 1 36,000 Sales in dollars $ 1,272,335 1,363,217 Average selling price per unit $ 50 4 Variable cost per unit $ 30 5 Variable cost in total 2 $ 817,930 Fixed selling and admin $ 302,900 $ 293,200 Operating income 3 6 Calculate on excel: 1. Complete the missing information above (1,2,3,4,5,6) 2. Prepare a flexible budget based on the actual quantity of units sold 3. Prepare a performance report comparing actual results to budgeted results in contribution income statement format. Ensure that the report breaks down variances between actual and budget into price and volume variances for sales, variable costs, and selling and admin expenses including which variances are favorable and which…