Power and utility cost to be allocated to SLIM is:
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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.
Rane and Co manufactures eight types of milk chocolates and candies. Power and utility costs are allocated based on material costs. For the month of June, the budgeted power and utility cost is Rs. 15 lakhs and material consumption is Rs. 180 lakhs. Actual power and utility is Rs.16 lakhs and actual material consumed is Rs. 180 lakhs. Material cost for one of the milk bar “SLIM” is Rs. 24. Power and utility cost to be allocated to SLIM is:
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- Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
- Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The factory overhead is applied on the basis of direct labor hours. A condensed version of the company’s flexible budget follows: The product requires 3 lb of materials at a standard cost of $5 per pound and 2 hours of direct labor at a standard cost of $10 per hour. For the current year, the company planned to operate at the level of 6,250 direct labor hours and to produce 3,125 units of product. Actual production and costs for the year follow: Required: For the current year, compute the factory overhead rate that will be used for production. Show the variable and fixed components that make up the total predetermined rate to be used. Prepare a standard cost card for the product. Show the individual elements of the overhead rate as well as the total rate. Compute (a) standard hours allowed for production and (b) under- or overapplied factory overhead for the year. Determine the reason for any under- or overapplied factory overhead for the year by computing all variances, using each of the following methods: Two-variance method Three-variance method (appendix) Four-variance method (appendix)Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of 600,000 and fixed factory overhead of 400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was 596,000, and actual fixed factory overhead was 410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. 24,000 unfavorable. b. 2,000 unfavorable. c. 4,000 favorable. d. 22,000 favorable.
- Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: 1 Factory depreciation $29,168.00 2 Indirect labor 72,920.00 3 Factory electricity 7,292.00 4 Indirect materials 26,220.00 5 Selling expenses 27,000.00 6 Administrative expenses 19,700.00 7 Total costs $182,300.00 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume (Cases) Processing Hours per Case Tortilla chips 3,900 0.18 Potato chips 5,100 0.12 Pretzels 2,200 0.43 Total 11,200 a. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent. per processing hour _________ b. Use the factory overhead rate in (a) to determine…Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: 1 Factory depreciation $25,888.00 2 Indirect labor 64,720.00 3 Factory electricity 6,472.00 4 Indirect materials 25,020.00 5 Selling expenses 24,100.00 6 Administrative expenses 15,600.00 7 Total costs $161,800.00 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume (Cases) Processing Hours per Case Tortilla chips 4,000 0.15 Potato chips 4,700 0.12 Pretzels 2,400 0.44 Total 11,100 Required: a. Determine the single plantwide factory overhead rate.* b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each…
- Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.4 hours per toy at $7.10 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 79,000 microns were purchased at a cost of $0.31 per micron. 35,250 of these microns were still in inventory at the end of the month. Direct labor: 7,400 direct labor-hours were worked at a cost of $57,720. Required: Compute the following variances for July: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount. The materials price and quantity…Xin Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 38 skeins of wool at a cost of $7 per skein and 0.7 gallons of dye at a cost of $5 per gallon. All other materials are indirect. At the beginning of the year Xin has an inventory of 456,000 skeins of wool at a cost of $1,048,800 and 3,400 gallons of dye at a cost of $21,760. Target ending inventory of wool and dye is zero. Xin uses the FIFO inventory cost flow method.There is no direct manufacturing labor cost for dyeing. Xin budgets 48 direct manufacturing labor-hours to weave a rug at a budgeted rate of $17 per hour. It budgets 0.3 machine-hours to dye each skein in the dyeing process. Xin blue rugs are very popular and demand is high, but because of capacity constraints the firm will produce only 275,000 blue rugs per year. The budgeted selling price is $2,400 each. There are no rugs in beginning inventory. Target ending inventory of rugs is also zero. Xin…Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: 1 Factory depreciation $31,875.00 2 Indirect labor 79,688.00 3 Factory electricity 7,969.00 4 Indirect materials 35,788.00 5 Selling expenses 24,800.00 6 Administrative expenses 19,100.00 7 Total costs $199,220.00 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume (Cases) Processing Hours per Case Tortilla chips 4,100 0.24 Potato chips 4,800 0.20 Pretzels 2,200 0.40 Total 11,100 Required: a. Determine the single plantwide factory overhead rate.* b. Use the factory overhead rate in (a) to determine the amount of total and…
