Prepare a monthly flexible selling expense budget for Podism Company for sales volumes of $270,000, $350,000, and $480,000, based on the following data:Sales commissions7% of salesSales manager's salary$62,000 per monthAdvertising expense$70,000 per monthShipping expense2% of salesMiscellaneous selling expense$2,500 per month plus 1/2% of sales Podism CompanyMonthly Selling Expense BudgetSales volume$270,000$350,000$480,000Variable expense:Sales commissions18,90024,50033,600Shipping expense5,4007,0009,600Miscellaneous selling expense1,3501,7502,400Total variable expense25,65033,25045,600Fixed expense:Sales manager's salary62,00062,00062,000Advertising expense70,00070,00070,000Miscellaneous selling expense2,5002,5002,500Total fixed expense134,500134,500134,500Total selling expense%24%24

Prepare a monthly flexible selling expense budget for Podism Company for sales volumes of $270,000, $350,000, and $480,000, based on the following data: Sales commissions 7% of sales Sales manager's salary $62,000 per month Advertising expense $70,000 per month Shipping expense 2% of sales Miscellaneous selling expense $2,500 per month plus 1/2% of sales

Prepare a monthly flexible selling expense budget for Podism Company for sales volumes of $270,000, $350,000, and $480,000, based on the following data: Sales commissions 7% of sales Sales manager's salary $62,000 per month Advertising expense $70,000 per month Shipping expense 2% of sales Miscellaneous selling expense $2,500 per month plus 1/2% of sales

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 7E: Professional foes earned budget for a service company LundquistFret well. CPAs, offer three types of...

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Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,539 Direct material purchases 115,290 120,832 Direct labor 75,205 73,299 Manufacturing overhead 25,400 25,400 Selling and administrative expenses 33,400 33,400 Depreciation included in selling and administrative 1,400 1,100 Collections from customers 215,391 240,154 Cash payments for purchases 114,300 119,253 Additional data:Capital assets were sold in January for $9,000 and $4,600 in May.Dividends of $4,400 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $58,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Beginning Cash Balance $fill in the blank 2 $fill in the blank 3 Add: Cash Receipts Collections from…
Quarter 1 Quarter 2 Sales $248,470 $251,539 Direct material purchases 120,295 128,832 Direct labor 76,553 74,289 Manufacturing overhead 26,000 24,400 Selling and administration expenses 33,500 33,500 Depreciation included in selling and administration expenses 2,000 2,500 Collection from customers 230,524 220,116 Cash payments for purchases 114,345 118,346 Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June. Additional data: Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000. The company has a 15% open line of credit for $70 000 with their bank. Required: Use this information to prepare a cash budget for the first two quarters of the year.
MCQS: 1) Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,500,000 Cost of sales: Direct Material $ 500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000 Gross Profit $ 1,875,000 Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000 Operating Income $ 875,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in all variable costs, and a $45,000 increase in fixed costs. The operating profit for next year would be: A $477,500. B $492,500. C $831,250. D $552,500. 2) Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent…
Oak Tree Villa operates a retail business. Purchases are sold at cost plus 331/3%. Or put another way. purchases are 75% of sales. Budgeted sales K Labour cost K Expenses incurred K January 40,000 3,000 4,000 February 60,000 3,000 6,000 March 160,000 5,000 7,000 April 120,000 4,000 7,000 It is management policy to have sufficient inventory in hand at the end of each month to meet sales demand in the next half month. Payables for materials and expenses are paid in the month after the purchases are made or the expenses incurred. Labour is paid in full by the end of each month. Expenses include a monthly depreciation charge of K2,000. 75% of sales are for cash. 25% of sales are on one month's interest-free credit The company will buy equipment for cash costing K18,000 in February and will pay a dividend of K 20,000 in March. The opening cash balance at 1 February is K1,000. Required (a) Prepare a cash budget for February and March
5) Prepare a flexible budget for the SGA expenses at the sales levels provided: Sales commissions 9% of sales Ad expense 12% of sales Miscellaneous expense $5000 per month plus 3% of sales Office expense $20,000 per month Customer support expense $15,000 per month plus 5% of sales R&D expense $30,000 per month $300,000 $500,000 $700,000
Professional Fees Earned Budget Day & Spieth, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending March 31, 20Y6: Billable Hours Audit Department: Staff 50,000 Partners 10,000 Tax Department: Staff 75,000 Partners 16,000 Small Business Accounting Department: Staff 20,000 Partners 4,000 The average billing rate for staff is $180 per hour, and the average billing rate for partners is $400 per hour. Prepare a professional fees earned budget for Day & Spieth, CPAs, for the year ending March 31, 20Y6. DAY & SPIETH, CPAs Professional Fees Earned Budget For the Year Ending March 31, 20Y6 Billable Hours Hourly Rate Total Revenue Audit Department: Staff $ $ Partners Total $ Tax Department: Staff $ $ Partners Total…
SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…
(M1) Problem: Twitty Company has the following information: Month April May June July $154,000 160,000 142,000 136,000 Budgeted Expenses per Month: Wages Advertising Depreciation Rent Freight-out Other $28,600 27,200 19,000 20,400 freight-out is20% of sales and other expenses are 8% of sales Note: All cash expenses are paid when incurred. The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in June is budgeted to be $6,000. Required: 1- Prepare a combined schedule of total operating expenses and cash disbursements for expenses for June. 2- The following additional information has been provided for June: Cash Collections in June ......................................... $130,000 Inventory purchases (all paid in June)................................ $28,000 Dividends paid in June ....................................................... $4,000 Prepare a cash budget in good form for the month of June, using this information and the budgeted…
Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,480 $211,540 Direct material purchases 115,300 120,832 Direct labor 75,205 73,298 Manufacturing overhead 25,300 25,400 Selling and administrative expenses 33,400 33,500 Depreciation included in selling and administrative 1,500 900 Collections from customers 215,392 240,154 Cash payments for purchases 114,290 119,254 Additional data:Capital assets were sold in January for $10,000 and $4,400 in May.Dividends of $4,600 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster CompanyCash BudgetFor the First Two Quarters Quarter 1 Quarter 2 $Beginning Cash Balance $Beginning Cash Balance Add: Cash Receipts Collections from Customers…
Professional Fees Earned Budget Day & Spieth, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending March 31, 20Y6: Billable Hours Audit Department: Staff 36,000 Partners 5,400 Tax Department: Staff 27,700 Partners 3,500 Small Business Accounting Department: Staff 4,700 Partners 700 The average billing rate for staff is $145 per hour, and the average billing rate for partners is $265 per hour. Prepare a professional fees earned budget for Day & Spieth, CPAs, for the year ending March 31, 20Y6. DAY & SPIETH, CPAs Professional Fees Earned Budget For the Year Ending March 31, 20Y6 Billable Hours Hourly Rate Total Revenue Audit Department: Staff fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Partners fill in the blank 4 fill in the…
Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,480 $211,540 Direct material purchases 115,295 120,832 Direct labor 75,210 73,298 Manufacturing overhead 25,400 25,400 Selling and administrative expenses 33,600 33,400 Depreciation included in selling and administrative 1,600 900 Collections from customers 215,393 240,156 Cash payments for purchases 114,295 119,254 Additional data:Capital assets were sold in January for $9,000 and $4,500 in May.Dividends of $4,600 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster CompanyCash BudgetFor the First Two Quarters
eBook Print Item Question Content Area Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,539 Direct material purchases 115,290 120,831 Direct labor 75,200 73,300 Manufacturing overhead 25,400 25,200 Selling and administrative expenses 33,400 33,400 Depreciation included in selling and administrative 1,500 1,100 Collections from customers 215,392 240,154 Cash payments for purchases 114,300 119,252 Additional data:Capital assets were sold in January for $11,000 and $4,500 in May.Dividends of $4,600 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $58,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster CompanyCash BudgetFor the First Two Quarters Quarter 1 Quarter 2 $- Select - $- Select - Add: Cash Receipts - Select - -…

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bartleby, a Learneo, Inc. business

Sales commissions	7% of sales
Sales manager's salary	$62,000 per month
Advertising expense	$70,000 per month
Shipping expense	2% of sales
Miscellaneous selling expense	$2,500 per month plus 1/2% of sales