Tessmer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgetedfor 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and itsactual results for January:Data used in budgeting:Fixed Element per Variable element perMonthtenant-dayRevenue$ 0$33.60Wages and salariesFood and supplies$ 3,500$ 7.4050010.50Facility expenses9,5004.70Administrative expenses6,6000.30Total expenses$20,100$22.90Actual results for January:$105,934$ 27,186$ 32,485$ 24,873$ 7,557RevenueWages and salariesFood and suppliesFacility expensesAdministrative expensesThe food and supplies in the flexible budget for January would be closest to: The food and supplies in the flexible budget for January would be closest to:Multiple Choice$32,380$32,590$32,945$33,050

Tessmer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Fixed Element per Variable element per Month tenant-day Revenue $33.60 Wages and salaries Food and supplies Facility expenses Administrative expenses $ 3,500 $ 7.40 500 10.50 9,500 6,600 4.70 0.30 Total expenses $20,100 $22.90 Actual results for January: Revenue $105,934 $ 27,186 $ 32,485 $ 24,873 $ 7,557 Wages and salaries Food and supplies Facility expenses Administrative expenses The food and supplies in the flexible budget for January would be closest to:

Tessmer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Fixed Element per Variable element per Month tenant-day Revenue $33.60 Wages and salaries Food and supplies Facility expenses Administrative expenses $ 3,500 $ 7.40 500 10.50 9,500 6,600 4.70 0.30 Total expenses $20,100 $22.90 Actual results for January: Revenue $105,934 $ 27,186 $ 32,485 $ 24,873 $ 7,557 Wages and salaries Food and supplies Facility expenses Administrative expenses The food and supplies in the flexible budget for January would be closest to:

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 4PB

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Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
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The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.