GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
16th Edition
ISBN: 9781260088458
Author: Ray H Garrison
Publisher: McGraw-Hill Education
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Chapter IE, Problem 13IE
INTEGRATION EXERCISE 13
Required:
- Assume that the company expects to collect all of its credit sales in the quarter of sale rather than the original assumption that it will collect 75% of credit sales in the quarter of sale and the remaining25% in the subsequent quarter. Without changing any of the underlying assumptions in your budgeting assumptions tab,calculate the following revised figures related to the 2017 budget:
- Net income (absorption basis)
Accounts receivable turnover- Net cash provided by operating activities
- Go to the Budgeting Assumptions tab in your Microsoft Excel worksheet. Change the percentage of sales that are collected in the quarter of sale to 100% and the percentage of sales that are collected in the quarter after sale to 0%. Do your answers to la through lc match the numbers that appear in your Excel worksheet? If not, why?
- Refer to the original budgeting assumptions from Integration Exercise 9. Assume that the company expects to pay its direct laborers $19 per hour instead of the original estimate of $18 per hour. Without changing any of the underlying assumptions in your budgeting assumptions tab, calculate the following revised figures related to the 2017 budget:
- Ending finished goods inventory at December 31. 2017.
- The break-even point in unit sales.
- Variable costing net operating income
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Students have asked these similar questions
Question Content Area
Given the following information, determine the activity rate (rounded to the nearest cent) for setups.
Activity
Total Activity-Base Usage
Budgeted Activity Cost
Setups
10,000
$57,200
Inspections
23,400
$149,700
Assembly (dlh)
73,800
$394,500
a. $5.61
b. $5.35
c. $6.40
d. $5.72
QUESTION 5 The following budgeted profit statement has been prepared using absorption costing principles.A company manufactures and sells a single product which has the following cost and sellingprice structure:
P/unit
P/unit
Selling price
P120
Direct material
22
Direct labour
36
Variable overhead
14
Fixed overhead
12
P84
Profit per unit
P36
The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month.Assume that the same amount is spent each month on fixed overheads.Budgeted sales for next month are 2,200 units.You are required to calculate:a. The breakeven point, in sales units per month. b. The margin of safety for the next month.
c. The budgeted profit for the next month. d. The sales required to achieve a profit of P96,000.
2. Flexible Budget for Selling and Administrative Expenses for a Service Company
Morningside Technologies Inc. uses flexible budgets that are based on the following data:
Chapter IE Solutions
GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
Ch. IE - Prob. 10IECh. IE -
INTEGRATION EXERCISE 11 Financial Statement Ratio...Ch. IE - INTEGRATION EXERCISE 12 Cost-Volume-Profit...Ch. IE - INTEGRATION EXERCISE 13 Master Budgeting,...Ch. IE - Prob. 1IECh. IE - Prob. 2IECh. IE - INTEGRATION EXERCISE 3 Absorption Costing....Ch. IE - Prob. 4IECh. IE - Prob. 5IECh. IE - Prob. 6IE
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