Financial Aid Student Accounts Resources Campus StoreWeekly (Feb 21-27)ProjectedActualDifferenceFood Cost$6,971$7,842+$871 (over)Beverage Cost$3,954$4,156+$202 (over)Labor Cost$8,423$9,541+$1,118 (over)$7,645$7,645$0 (even)Other Costs$26,993$29,184+$2191 (over)Total Costs$18,565$14,326-$4,239 (under)Food Sales$12,872$10,852-$2,020 (under)Beverage SalesTotal Sales (Revenue)$31,437$25,178-$6,259 (under)$4,444-$4,006$8,450 (under)Total ProfitBased on the actual results, what adjustments need to be made to Labor costs?Select one:a. Labor costs do not need to be adjusted because it will balance out next week.O b. Labor costs should be reduced by cutting employee wages.O c. Labor costs should be reduced by scheduling fewer employees and/or reducing hours.d. Labor costs should be reduced by sending salaried employees home early.

Solution:- Labour cost is the cost incurred on salaries, wages and other expenses relating to…

Answered: Weekly (Feb 21-27) Projected Actual…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 6PA: Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were...

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The actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour $120 $135 Credit hours 60,450 43,200 Registration, records, and marketing costs per enrolled student $275 $275 Instructional costs per credit hour $64 $60 Depreciation on classrooms and equipment $825,600 $825,600 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Underwater University Variable Costing Income Statement For the Fall Term Revenue $ Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs $ Contribution margin $ Depreciation on classrooms and equipment Operating income…
Student question Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: Budgeted monthly absorption costing income statements for April–July are: April May June July Sales $ 730,000 $ 910,000 $ 610,000 $ 520,000 Cost of goods sold 511,000 637,000 427,000 364,000 Gross margin 219,000 273,000 183,000 156,000 Selling and administrative expenses: Selling expense 91,000 110,000 72,000 52,000 Administrative expense* 50,500 68,800 44,600 49,000 Total selling and administrative expenses 141,500 178,800 116,600 101,000 Net operating income $ 77,500 $ 94,200 $ 66,400 $ 55,000 *Includes $33,000 of depreciation each month. Sales are 20% for cash and 80% on account. Sales…
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…
Direct Labor Budget for Service The School of Accounting (SOA) at State University is planning its annual fundraising campaign for accounting alumni. This year, the SOA is planning a call-a-thon and will ask Beta Alpha Psi members to volunteer to make phone calls to a list of 7,000 alumni. The Dean's office has agreed to let Beta Alpha Psi use their offices from 6 p.m. to 9 p.m. each weekday so that they will have access to phones. Each volunteer will be provided with a phone and a script with an introduction and suggested responses to various questions that had been asked in the past. Carol Johnson, Beta Alpha Psi faculty advisor, estimates the following: Of the 7,000 phone numbers, roughly 10 percent will be wrong numbers (because alumni change addresses and phone numbers without updating State University). In that case, the student is instructed to apologize to the answering party, hang up, and move on to the next phone number. Each of these calls takes about three minutes. Another…
KAYAK COMPANYCash Budget JanuaryFebruaryMarchBeginning cash balance$30,000 $30,000 Add: Cash receipts525,000 400,000 450,000 Total cash available555,000 430,000 Less: Cash payments for All items excluding interest Interest on loan Total cash payments0 0 0 Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balanceLoan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month$0 $0 $0
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
A school is raising money to buy robes. Cost is $8,000. Raffle tickets are sold for $10. Variable cost is $2 and fixed cost is$8,000. Determine sales volume required for target income.
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…
Relevant data from the operating budget of The Framers are: quarter 1 quarter 2 Sales $35,000 76,000 Direct Material purchases 25,000 26,000 Direct labor 30,000 24,000 Manufacturing OH 9,000 10,000 Selling & Admin 20,000 20,000 Depreciation included in Selling & Admin 1000 1,000 Cash Collections 34,000 76,000 Cash payments 29,000 20,000 Cash received: other 8,000 500 Dividend 0 500 Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May. The beginning cash balance was $40,000 and a required minimum cash balance is $8,000. Prepare a cash budget for the first two quarters of the year.
Hugo Medical Supply has applied for a loan. Pacific Commerce Bank has requested a budgeted balance sheet as of April 30, and a combined cash budget for April. As Hugo Medical Supply's controller, you have assembled the following information: a. March 31 equipment balance, $52,600; accumulated depreciation, $41,300. b. April capital expenditures of $ 42,400 budgeted for cash purchase of equipment. c. April depreciation expense, $700. d. Cost of goods sold, 60%of sales. e. Other April operating expenses, including income tax, total $14,200, 35% of which will be paid in cash and the remainder accrued at April 30. f. March 31 owners' equity, $92,600. g. March 31 cash balance, $40,300. h. April budgeted sales, $90,000, 70% of which is for cash. Of the remaining 30%, half will be collected in April and half in May. i. April cash collections on March sales, $29,100. j. April cash payments of March 31 liabilities incurred for March…
Fairview Medical Supply has applied for a loan. First American Bank has requested a budgeted balance sheet as of April 30, and a combined cash budget for April. As Fairview Medical Supply's controller, you have assembled the following information: a. March 31 equipment balance, $52,700; accumulated depreciation, $41,100. b. April capital expenditures of $42,700 budgeted for cash purchase of equipment. c. April depreciation expense, $500. d. Cost of goods sold, 60% of sales. e. Other April operating expenses, including income tax, total $13,400, 30%of which will be paid in cash and the remainder accrued at April 30. f. March 31 owners' equity, $93,600. g. March 31 cash balance, $40,100. h. April budgeted sales, $91,000, 70% of which is for cash. Of the remaining 30%, half will be collected in April and half in May. i. April cash collections on March sales, $29,200. j. April cash payments of March 31 liabilities incurred…
Below is budget information for next year for NGG Inc. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Cash inflows - revenues $60,000 $75,000 $70,000 $80,000 Cash outflows - dir matls, dir lab $25,000 $30,000 $27,500 $35,000 Fixed OH expenses $8,000 $8,000 $8,000 $8,000 Distributions to owners $5,000 $5,000 $5,000 $5,000 Equipment purchases (long term) $0 $2,500 $0 $0 No variable overhead is incurred or budgeted.The expected cash balance at the end of the current year is $3,500.Disbursements other than for direct materials and direct labor are expected to occurin the quarter incurred.Fixed overhead expenses include $1,000 for depreciation.What is the budgeted excess or (deficiency) in cash flows at the end of the first quarter?

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