EBK FINANCIAL & MANAGERIAL ACCOUNTING
13th Edition
ISBN: 9780100545052
Author: WARREN
Publisher: YUZU
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Chapter 21, Problem 21.15EX
To determine
Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.
To Prepare: The
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Toot Sweet Company budgeted the following costs for anticipated production for August:
Advertising expenses
$241,360
Manufacturing supplies
13,230
Power and light
39,450
Sales commissions
260,760
Factory insurance
22,970
Production supervisor wages
116,040
Production control wages
30,170
Executive officer salaries
246,000
Materials management wages
33,190
Factory depreciation
18,800
Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
Toot Sweet Company
Factory Overhead Cost Budget
For the Month Ending August 31
Variable factory overhead costs:
Total variable factory overhead costs
Fixed factory overhead costs:
Total fixed factory overhead costs
Total factory overhead costs
Anderson Candy Company budgeted the following costs for anticipated production for October:
Line Item Description
Amount
Advertising expenses
$250,940
Manufacturing supplies
13,750
Power and light
41,020
Sales commissions
280,570
Factory insurance
23,890
Production supervisor wages
120,650
Production control wages
31,370
Executive officer salaries
255,770
Materials management wages
34,500
Factory depreciation
19,540
Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
Anderson Candy CompanyFactory Overhead Cost BudgetFor the Month Ending October 31
Line Item Description
Amount
Amount
Variable factory overhead costs:
$- Select -
- Select -
- Select -
- Select -
- Select -
Total variable factory overhead costs
$Total variable factory overhead costs
Fixed factory overhead costs:
$- Select -…
Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:
Advertising expenses
$232,000
Manufacturing supplies
14,000
Power and light
48,000
Sales commissions
298,000
Factory insurance
30,000
Production supervisor wages
135,000
Production control wages
32,000
Executive officer salaries
310,000
Materials management wages
39,000
Factory depreciation
22,000
Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
Sweet Tooth Candy CompanyFactory Overhead Cost BudgetFor the Month Ending August 31
Variable factory overhead costs:
$- Select -
- Select -
- Select -
- Select -
- Select -
Total variable factory overhead costs
$fill in the blank 11
Fixed factory overhead costs:
$- Select -
- Select -
Total fixed factory overhead costs
fill in the blank 16…
Chapter 21 Solutions
EBK FINANCIAL & MANAGERIAL ACCOUNTING
Ch. 21 - Prob. 1DQCh. 21 - Briefly describe the type of human behavior...Ch. 21 - What behavioral problems are associated with...Ch. 21 - What behavioral problems are associated with...Ch. 21 - Under what circumstances would a static budget be...Ch. 21 - How do computerized budgeting systems aid firms in...Ch. 21 - Why should the production requirements Set forth...Ch. 21 - Prob. 8DQCh. 21 - A. Discuss the purpose of the cash budget. B. If...Ch. 21 - Give an example of how the capital expenditures...
Ch. 21 - Flexible budgeting At the beginning of the period,...Ch. 21 - Prob. 21.1BPECh. 21 - Prob. 21.2APECh. 21 - Prob. 21.2BPECh. 21 - Direct materials purchases budget My Life...Ch. 21 - Prob. 21.3BPECh. 21 - Direct labor cost budget MyLife Chronicles Inc....Ch. 21 - Prob. 21.4BPECh. 21 - Prob. 21.5APECh. 21 - Prob. 21.5BPECh. 21 - Prob. 21.6APECh. 21 - Prob. 21.6BPECh. 21 - Personal budget At the beginning of the 2016...Ch. 21 - Flexible budget for selling and administrative...Ch. 21 - Static budget versus flexible budget The...Ch. 21 - Prob. 21.4EXCh. 21 - Prob. 21.5EXCh. 21 - Prob. 21.6EXCh. 21 - Prob. 21.7EXCh. 21 - Prob. 21.8EXCh. 21 - Direct materials purchases budget Romano's Frozen...Ch. 21 - Prob. 21.10EXCh. 21 - Prob. 21.11EXCh. 21 - Direct labor cost budget Ace Racket Company...Ch. 21 - Prob. 21.13EXCh. 21 - Production and direct labor cost budgets Levi...Ch. 21 - Prob. 21.15EXCh. 21 - Cost of goods sold budget Delaware Chemical...Ch. 21 - Cost of goods sold budget The controller of...Ch. 21 - Schedule of cash collections of accounts...Ch. 21 - Schedule of cash collections of accounts...Ch. 21 - Schedule of cash payments for a service company...Ch. 21 - Schedule of cash payments for a service company...Ch. 21 - Capital expenditures budget On January 1, 2016,...Ch. 21 - Forecast sales volume and sales budget For 2016,...Ch. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Sonoma Housewares...Ch. 21 - Budgeted income statement and balance sheet As a...Ch. 21 - Prob. 21.1BPRCh. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Mercury Shoes Inc....Ch. 21 - Prob. 21.5BPRCh. 21 - Prob. 21.1CPCh. 21 - Prob. 21.2CPCh. 21 - Static budget for a service company A bank manager...Ch. 21 - Objectives of the master budget Dominos Pizza LLC....Ch. 21 - Integrity and evaluating budgeting systems The...
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- The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional information follows: Materials used in production: Direct labor hours required in production: Prepare the following: a. A production budget for May. b. A direct materials budget for May. c. A direct labor budget for May.arrow_forwardListed below are the budgeted factory overhead costs for 2011 for Moss Industries at a projected level of 2,000 units: Required: Prepare flexible budgets for factory overhead at the 1,000, 2,000, and 4,000 unit levels. (Hint: You must first decide which of the listed costs should be considered variable and which should be fixed.)arrow_forwardFactory overhead cost budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.arrow_forward
- Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?arrow_forwardFlexible budget for factory overhead Presented below are the monthly factory overhead cost budget (at normal capacity of 5,000 units or 20,000 direct labor hours) and the production and cost data for a month. The predetermined overhead rate is based on normal capacity. Required: 1. Assuming that variable costs will vary in direct proportion to the change in volume, prepare a flexible budget for production levels of 80%, 90%, and 110% of normal capacity. Also determine the predetermined factory overhead rate at each level of volume in both units and direct labor hours. 2. Prepare a flexible budget for production levels of 80%, 90%, and 110%, assuming that variable costs will vary in direct proportion to the change in volume, but with the following exceptions. (Hint: Set up a third category for semi-variable expenses.) a. At 110% of capacity, another supervisor will be needed at a salary of 24,000 annually. b. At 80% of capacity, the repairs expense will drop to one-half of the amount at 100% capacity. c. At 80% of capacity, one part-time maintenance worker, earning 10,000 a year, will be laid off. d. At 110% of capacity, a machine not normally in use and on which no depreciation is normally recorded will be used in production. Its cost was 12,000, it has a 10-year life, and straight-line depreciation will be taken.arrow_forwardFactory Overhead Cost Budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $232,000 Manufacturing supplies 14,000 Power and light 48,000 Sales commissions 298,000 Factory insurance 30,000 Production supervisor wages 135,000 Production control wages 32,000 Executive officer salaries 310,000 Materials management wages 39,000 Factory depreciation 22,000 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Sweet Tooth Candy Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: $fill in the blank 2 fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 Total variable factory overhead costs $fill in the blank 11 Fixed factory overhead costs: $fill in the blank 13…arrow_forward
- Factory Overhead Cost Budget Nutty Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $274,210 Production supervisor wages $131,830 Manufacturing supplies 15,030 Production control wages 34,280 Power and light 44,820 Executive officer salaries 279,480 Sales commissions 303,060 Materials management wages 37,700 Factory insurance 26,100 Factory depreciation 21,360 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only factory fixed costs. Enter all amounts as positive numbers. NUTTY CANDY COMPANY Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: $fill in the blank 2 fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 Total variable factory overhead costs $fill in the blank 11 Fixed factory overhead costs:…arrow_forwardFactory Overhead Cost Budget Toot Sweet Company budgeted the following costs for anticipated production for August: Advertising expenses $270,080 Manufacturing supplies 14,800 Power and light 44,150 Sales commissions 301,970 Factory insurance 25,710 Production supervisor wages 129,850 Production control wages 33,760 Executive officer salaries 275,270 Materials management wages 37,130 Factory depreciation 21,030 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Toot Sweet CompanyFactory Overhead Cost BudgetFor the Month Ending August 31 Variable factory overhead costs: Manufacturing supplies $ Power and light Production supervisor wages Production control wages Materials management wages Total variable factory overhead costs $ fill in the blank Fixed factory overhead costs: Factory insurance $…arrow_forwardFactory Overhead Cost Budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses Manufacturing supplies Power and light Sales commissions Factory insurance Production supervisor wages Production control wages Executive officer salaries Materials management wages Factory depreciation Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. $297,290 16,290 48,600 328,580 28,300 142,930 37,160 303,010 40,880 23,150 Sweet Tooth Candy Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: Total variable factory overhead costs Fixed factory overhead costs: Total fixed factory overhead costs Total factory overhead costsarrow_forward
- Factory overhead cost budget Anderson Candy Company budgeted the following costs for anticipated production for October: Advertising expenses $246,000 Manufacturing supplies 13,480 Power and light 40,210 Sales commissions 265,770 Factory insurance 23,420 Production supervisor wages 118,270 Production control wages Executive officer salaries Materials management wages Factory depreciation Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Line Item Description Variable factory overhead costs: Manufacturing supplies Power and light Anderson Candy Company Factory Overhead Cost Budget For the Month Ending October 31 Production supervisor wages Production control wages Materials management wages ✓ Total variable factory overhead costs Fixed factory overhead costs: Factory insurance Factory depreciation 30,750 250,730 33,830 19,160 Total fixed factory overhead costs Total factory…arrow_forwardFactory Overhead Cost Budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $285,180 Manufacturing supplies 15,630 Power and light 46,620 Sales commissions 315,180 Factory insurance 27,150 Production supervisor wages 137,110 Production control wages 35,650 Executive officer salaries 290,660 Materials management wages 39,200 Factory depreciation 22,210 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Sweet Tooth Candy Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: Manufacturing supplies $ Power and light Production supervisor wages Production control wages Materials management wages Total variable factory overhead costs $ Fixed factory overhead costs: Factory insurance $…arrow_forwardRoberts Company has the following manufacturing overhead budget for the current month: Budgeted units to be produced VOH* cost per unit Budgeted VOH* Budgeted FOH** $23,000 $30 690,000 4,000 15,000 Budgeted manufacturing overhead costs 19,000 $709,000 *VOH - Variable Manufacturing Overhead Depreciation Rent Total budgeted FOH **FOH - Fixed Manufacturing Overhead What would be the budgeted manufacturing overhead costs for the month if Roberts Company expects to increase the budgeted production of units to 28,000 and the variable overhead cost per unit is expected to decrease to $25 per unit? OA. $709,000 O B. $719,000 OC. $700,000 OD. $681,000 1:34 PMarrow_forward
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