Novak Possible Inc. (NP) is a manufacturer of toaster ovens. To improve control over operations, the president of NP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for NP's expected costs at production levels of 117,000, 130,000, and 143,000 units. Variable costs $5 per unit $3 per unit $3 per unit Manufacturing $208,000 Administrative $104,000 Prepare a flexible budget for each of the possible production levels: 117,000, 130,000, and 143,000 units. (List variable costs before fixed costs) NOVAK POSSIBLE INC. Flexible Production Cost Budget Activity Level Production Levels Variable Costs Manufacturing Administrative Selling Fixed costs

Q: Which of the following statements is not correct?

A: Leave monetization is actually the leave encashment which means the if there is any earned leaves…

Q: Units produced and sold 150   300   Selling price per unit $400   $200   Variable expenses per…

A: Fixed costs are those costs which generally do not change with change in activity level. Variable…

Q: 9. Under Section 22 (B) of the Tax Code, the term "corporation" does not include: Associations…

A: The tax code is the law presiding over the Philippines that guides tax compliance in the country.

Q: Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible…

A: WORKINGS- (1) Calculation of budgeted sales: Sales(units produced and sold) [A] 1600 Sales per…

Q: Transfer Pricing, Idle Capacity Mouton & Perrier, Inc., has a number of divisions that produce…

A: Transfer pricing methodology is that process under which it is determined that at which price…

Q: Beginning Finished Goods Inventory is $86,400 consisting of 3,600 units. gin by calculating the…

A: Budget refers to the financial plan for a time frame of one year and it involves the planned sales…

Q: An increase in the Prepaid Expenses account of $1,000 over the course of a year would be shown on…

A: Under the indirect method of cash flow statement: Decrease in current assets or increase in current…

Q: Bonds issued last year by Gowen Inc. carried a coupon rate of 7%. Bonds issued today by Gowen Inc.…

A: Cost of debt is the effective rate that a company pays on its debt. Here the debt is in the form of…

Q: Billings Corporation acquires a coal mine at a cost of $2,000,000. Intangible development costs…

A: Depletion cost per ton = (Cost of the Coal mine - Residual value) / Estimated quantity of coal…

Q: O Debit Accounts Payable for 1,960, Debit Purchases Discounts Lost for 40, and Credit Cash for 2,000…

A: Introduction:- The Term "2/10 net 30" means if the amount due is paid within a period of10 days, the…

Q: The wood used to make furniture is a variable cost to an enterprise that manufactures and sells…

A: Cost are divided into three parts which are, (1) Variable cost (2) Fixed cost (3) Semi variable cost…

Q: Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity…

A: Lets understand the basics. There are two type of costing method follows by the entity which are,…

Q: daily volatility is 1%. Use the quadratic change in the portfolio value.

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Waupaca Company establishes a $410 petty cash fund on September 9. On September 30, the fund shows…

A: The question is based on the concept of Financial Accounting.

Q: Before starting to render his service, Paolo collected an advance payment of P2,000 for the…

A: Gross service income is the sum of remuneration received from delivery of service. In the given…

Q: Based on the following data, what is the current ratio, rounded to one decimal point? Accounts…

A: Introduction: Current ratio: It tells the ability of the company for paying the short term…

Q: 36,000 each. Each item may be paid in 6 months divided equally into qual monthly payments with 0%…

A: Basic Concept of Accounting

Q: However, now assume that for this question only that the preferred shares were cumulative and…

A: Preferred Shareholders dividend for 2019 not Paid before = 300,000 x 0.90 =270,000 Preferred…

Q: Presented below are the components in Jane  Company's income statement. Determine the missing…

A: Cost of goods sold means the cost incurred on the goods which has been sold including all direct…

Q: The initial investment in the equipment needed for the project is $50,000 for a duration of 10…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Warren Company has a hurdle rate of 11.2%. a. Calculate the return on investment for each division.…

A: a)Calculation of return on investments as follows under:-

Q: Demand Regular Production Subcontract Production Ending Inventory

A: The answer has been mentioned below,

Q: 1. If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the…

A: Introduction:- The current ratio is a liquidity ratio. It indicates firm's liquidity position. It…

Q: The accounts of RIX Itd for the year ended December 2019 shows the following: Particulars Rs.…

A: Cost accounting is one of the important branch of accounting. Under it, various type of costs are…

Q: During the accounting period, Munoz purchased $238,300 of raw materials and issued $249,500 of…

A: Cost of goods manufactured shows total costs incurred on manufacturing of goods. It includes direct…

Q: Question 5 If an individual performs services for a creditor who in consideration therefor cancels…

A: Creditor is the person to whom payment for goods and services is yet to be made, although goods and…

Q: Princess Thea started a business on February 1, 2018 with a capital of P750 000. The following…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Ex. 6-2. Labor Cost Variances. Pacito Corporation usually pays its factory workers at a rate of P10…

A: Variance is the difference of the actual result from the expected result. In case of cost, if the…

Q: How is goodwill now treated in a merger?

A: Goodwill forms a part of assets of the entity and is considered an intangible asset.

Q: Provide the objectives for a successful audit program according to ISO9001:2015

A: An audit program according to ISO 9001:2015 is the one which involves commitments, responsibility…

Q: Special-Order Decision, Services, Qualitative Aspects Jason Rogers works full-time for UPS and runs…

A: Total number of lawns for LStar Property Management Services = No. of rental houses * 2 weeks * No.…

Q: Under PCAOB standards (AS 3101) approved in 2017, all U.S. public companies will be required to…

A: Audit in general term to check whether the financial health of the company is shown correct or not.…

Q: Required: 1. Compute depletion and depreciation on the mine and mining equipment for 2021 and 2022.…

A: Jackpot Mining Company operates a copper mine in central Montana. The company expects to extract…

Q: Brunleigh Corporation earned net income of $200,000 this year. The company began the year with…

A: Formula: Weighted average number of shares = Shares issued x Time period

Q: Kellogg, maker of Pop-Tarts, recently introduced Pop-Tarts Gone Nutty! The new product includes…

A: Branding- Branding is a marketing process that actively creates a positive and strong impression in…

Q: Which of the following is a Customer report: a. Accounts Receivable (A/R) Aging b. Accounts Payable…

A: Solution: Accounts payable ageing reflects ageing of creditors not paid yet after they are due for…

Q: ABC acquired a new Laser Machine worth ₱580,000.00. The center plans to pay 40% advance payment and…

A: Given that, Cost of machine = P580,000  Advance paid = P580,000*40% = P232,000  Remaining balance :…

Q: The Journal: a. Lists every journal entry made only through the onscreen journal b. Is also called…

A: Journal : It is a subsidiary book where transaction are recorded.  It is the first step of recording…

Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: The net profit and other commercial activities maintained by a firm as extra equity capital is known…

Q: At the end of 2020, its first year of operations, Tyre Recycling Inc. prepared the following…

A: GAAP income is used to determine income tax expense, which is a financial accounting record. The…

Q: For calendar 2020, Marvel Corporation, Inc., reported depreciation expense of $900,000 on its income…

A: Deferred tax liability is a tax obligation that accumulated in one year but is due to be adjusted in…

Q: McDollibee Trial Balance June 30, 2019 Debit P Credit P 5,500 800 15,670 P 21,970 5 Collected P 850…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: 1. James works as a salesman in Octagon Blitz, a computer, gaming, and multimedia store. Last month,…

A: The sales commission is based on the sales revenue earned during the period.

Q: True or False? The Statement of Stockholders' Equity shows how the balance of each equity account…

A: The statement of shareholder's equity is one of the financial statements of the business.

Q: Montana Incorporated began the year with a retained earnings balance of $50,000. The company paid a…

A: Introduction: Retained Earnings: Retained earnings are shareholders funds. Part of profits are…

Q: Make-or-Buy, Traditional Analysis Morrill Company produces two different types of gauges: a density…

A: Business organization either produce the goods in house or purchase the product from the outside…

Q: At the end of the current year, $18,540 of fees have been earned but have not been billed to…

A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Q: Carla Vistas, Inc. provided the following budgeted information for March through July:   March…

A: Budgets are the forecasts or estimates that are made for future period. These reflect future…

Q: The company uses LIFO periodic inventory method. Given the following information, what LIFO…

A: In the context of the given question, we should compute the LIFO liquidation profit and after-tax…

Q: Metlock Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone…

A: Present value of annual $41200 = $41200 for year 0 + ($41200 x PVAF) for year 1 to 4 = $41200 +…

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.