くoR# 3回2The Copy Department in the College of Business at State University provides photocopying services for both the Marketing and EconomicsDepartments. The following budget has been prepared for the year.7,000,000 pagesAvailable capacityBudgeted usage:MarketingEconomics4,600,000 pages2,300,000 pages$150,000 + $0.075 per pageD0:31:26Cost equationIf the Copy Department uses a dual-rate for allocating its costs, how much cost will be allocated to the Marketing Department, assuming the MarketingDepartment actually made 4,800,000 copies during the year?Multiple Choice$525,000.$410,000.McGraw1 of 30PrevNext >MacBook Air000000 F4escF3F5F7F8F1263OLJ&i%$dele6}{ASWoptioncommandcommandoption

Cost allocation is the process of identifying, collecting, and assigning expenses to cost items. A…

The Copy Department in the College of Business at State University provides photocopying services for both the Marketing and Departments. The following budget has been prepared for the year. 7,000,000 pages Available capacity Budgeted usage: Marketing Economics 4,600,000 pages 2,300,000 pages $150,000 + $0.075 per page 26 Cost equation If the Copy Department uses a dual-rate for allocating its costs, how much cost will be allocated to the Marketing Department, assumin Department actually made 4,800,000 copies during the year?

The Copy Department in the College of Business at State University provides photocopying services for both the Marketing and Departments. The following budget has been prepared for the year. 7,000,000 pages Available capacity Budgeted usage: Marketing Economics 4,600,000 pages 2,300,000 pages $150,000 + $0.075 per page 26 Cost equation If the Copy Department uses a dual-rate for allocating its costs, how much cost will be allocated to the Marketing Department, assumin Department actually made 4,800,000 copies during the year?

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 21.3CP: Static budget for a service company A bank manager of City Savings bank Inc. uses the managerial...

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Budgeted income statement and supporting budgets The budget director of Feathered Friends Inc., with the assistance of thee controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December: A. Estimated sales for December Bird house....................... 3,200 units at 50 per unit Bird feeder....................... 3,000 units at 70 per unit B. Estimated inventories at December 1: Direct materials Finished products: Wood............ 220 ft Bird house........ 320 units at 27 per unit Plastic............ 240 ft Bird house........ 270 units at 40 per unit C. Desired inventories at December 31: Direct materials Finished products: Wood............ 220 ft Bird house........ 290 units at 27 per unit Plastic............ 200 ft Bird house........ 205 units at 41 per unit D. Direct materials used in production: In manufacture of Bird House: In manufacture of Bird Feeder: Wood............ 0.80 ft. per unit of product Wood........ 1.20 ft. per unit of product Plastic............ 0.50 lb. per unit of product Plastic......... 0.75 lb. per unit of product E. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood 7.00 per ft Plastic 1.00 per lb. F. Direct labor requirements: Bird House: Fabrication Department...................... 0.20 hr. at 16 per hr. Assembly Department........................ 0.30 hr. at 12 per hr. Bird Feeder: Fabrication Department...................... 0.40 hr. at 16 per hr. Assembly Department........................ 0.35 hr. at 12 pr hr. G. Estimated factory overhead costs for December: Indirect factory wages 75,000 Depreciation of plant and equipment 23,000 Power and light 6,000 Insurance and property tax 5,000 H. Estimated operating expenses for December: Sales salaries expense 70,000 Advertising expense 18,000 Office salaries expense 21,000 Depreciation expenseoffice equipment 600 Telephone expenseselling 550 Telephone expenseadministrative 250 Travel expenseselling 4,000 Office supplies expense 200 Miscellaneous administrative expense 400 I. Estimated other income and expense for December: Interest revenue200 Interest expense122 J. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for December. 2. Prepare a production budget for December. 3. Prepare a direct materials purchases budget for December. 4. Prepare a direct labor cost budget for December. 5. Prepare a factory overhead cost budget for December. 6. Prepare a cost of goods sold budget for December. Work in process at the beginning of December is estimated to be 29,000, and work in process at the end of December is estimated to be 35,400. 7. Prepare a selling and administrative expenses budget for December. 8. Prepare a budgeted income statement for December.
Budget performance report for a cost center Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands): During August, the costs incurred in the Crane Division were as follows: Instructions Prepare a budget performance report for the director of the Crane Division for the month of August.
Budget performance report for a cost center Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands): During August, the costs incurred in the Crane Division were as follows: Instructions For which costs might the director be expected to request supplemental reports?
Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget? FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Required: 1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. 2. What if FlashKick added a third linetournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of 45 each in January and February, and 48 each in March? Prepare a sales budget for Flash- Kick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.
Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co., 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 March: A. Estimated sales for March: Batting helmet.................. 1,200 units at 40 per unit Football helmet................. 6,500 units at 160 per unit B. Estimated inventories at March 1: Direct materials: Finished products: Plastic............ 90 lbs. Batting helmet....... 40 units at 25 per unit Foam lining....... 80 lbs. Football helmet...... 240 units at 77 per unit C. Desired inventories at March 31: Direct materials: Finished products: Plastic............ 50 lbs. Batting helmet....... 50 units at 25 per unit Foam lining....... 65 lbs. Football helmet...... 220 units at 78 per unit D. Direct materials used in production: In manufacture of batting helmet: Plastic............................... 1.2lbs. per unit of product Foam lining......................... 0.5 lb. per unit of product In manufacture of football helmet: Plastic............................... 3.5lbs. per unit of product Foam lining.......................... 1.5 lbs. per unit of product E. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic........................ 6 per lb. Foam lining................... 4 per lb. F. Direct labor requirements Batting helmet: Molding Department............. 0.2 hr. at 20 per unit Assembly Department............ 0.5 hr. at 14 per hr. Football helmet: Molding Department............. 0.5 hr. at 20 per hr. Assembly Department............ 1.8 hrs. at 14 per hr. G. Estimated factory overhead costs for March: Indirect factory wages 86,000 Depreciation of plant and equipment 12,000 Power and light 4,000 Insurance and property tax 2,300 H. Estimated operating expenses for March: Sales salaries expense 184,300 Advertising expense 87,300 Office salaries expense 32,400 Depreciation expenseoffice equipment 3,800 Telephone expenseselling 5,800 Telephone expenseadministrative 1,200 Travel expenseselling 9,000 Office supplies expense 1,100 Miscellaneous administrative expense 1,000 I. Estimated other income and expense for March: Interest revenue 940 Interest expense 872 J. Estimated tax rate:30% Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. 4. Prepare a direct labor cost budget for March. 5. Prepare a factory overhead cost budget for March. 6. Prepare a cost of goods sold budget for March. Work in process at the beginning of March is estimated to be 15,300, and work in process at the end of March is desired to be 14,800. 7. Prepare a selling and administrative expenses budget for March. 8. Prepare a budgeted income statement for March.
Static budget for a service company A bank manager of City Savings bank Inc. uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trust, Commercial Loans, Mortgage Loans, Operations, Credit Card, and Branch Services. The static budget and actual results for the Operations Department are as follows: Resources Budget Actual Salaries 200,000 200,000 Benefits 30,000 30,000 Supplies 45,000 42,000 Travel 20,000 30,000 Training 25,000 35,000 Overtime 25,000 20,000 Total 345.000 357,000 Excess of actual over budget 12,000 a. What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department manager? b. What information does the static budget fail to provide? Specifically, could the budget information be presented differently to provide even more insight for the bank manager?
BUS 203: INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING PROJECT: CASH BUDGETING ASSOCIATE DEGREE YEAR 2: SEMESTER 1 (2020/21)Ronstadt Limited’s budget for the four months from January to April includes the following data:1. MonthSalesMaterialsWagesOverheads $000$000$000$000January615115.030360February636120.033390March690135.036420April684130.040425 2. One-third of sales revenue is received one month after sale and the remainder is received two months after sale. The sales in the previous two months were: November $600 000; December $540 000.3. One-quarter of purchases of materials are paid for in the month of purchase. The remainder are paid for two months later. Purchases in the previous two months were: November $108 000; December $106 000.4. Two-thirds of the wages are paid in the month in which they are earned, and the balance is paid in the following month. The wages for the previous December amounted to $30 000.5. One-half of the overhead expenditure is paid in the month in…
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…
2.3 Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,780,000 Quarter 2 5,690,000 Quarter 3 630,000 Quarter 4 8,200,000 In Shalimar’s 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 $5,080,000 and for the fourth quarter of the current year are $7,220,000.
Y3 Five Friends Relocation Company prepared the following sales budget: Month Cash Sales Credit Sales March $21,000 $12,000 April $30,000 $16,000 May $37,000 $35,000 June $58,000 $53,000 Credit collections are 40% in the month of sale, 40% in the month following the sale, and 10% two months following the sale. The remaining 10% is expected to be uncollectible. What are the total cash collections in May at Five Friends Relocation Company? A. $51,700 B. $58,600 C. $100,000 D. 21,600
3-24 CVP exercises. The Deli-Sub Shop owns and operates six stores in and around Minneapolis. Youare given the following corporate budget data for next year:Revenues $11,000,000Fixed costs $ 3,000,000Variable costs $ 7,500,000Variable costs change based on the number of subs sold.Compute the budgeted operating income for each of the following deviations from the original budget data.(Consider each case independently.)1. A 10% increase in contribution margin, holding revenues constant2. A 10% decrease in contribution margin, holding revenues constant3. A 5% increase in fixed costs4. A 5% decrease in fixed costs5. A 5% increase in units sold6. A 5% decrease in units sold7. A 10% increase in fixed costs and a 10% increase in units sold8. A 5% increase in fixed costs and a 5% decrease in variable costs9. Which of these alternatives yields the highest budgeted operating income? Explain why this is the case.
Please give me step by step directions. Ch 26 pro 7 Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $540,000 and 60,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity.$ ________________________per sales order b. Determine the amount of sales order processing cost that Nozama.com would receive if it had 45,000 sales orders_________________________________.