Preparation of Static and Flexible Budgets- Computation of Static Budget Variance- Flexible Budget Variance and sales Volume Variance.Comments and analysis of Budget variances. Maple Leaf Electronics Corporation manufactures electric fans. For July 2008 it budgeted to manufacture and sell 2500 electric fans at a variable co
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Using the following manufacturing cost per unit, prepare a flexible budget for the company at levels of production of 550, 600, and 650 units. Direct Materials $6.80 Direct Labor $8.90 Manufacturing Overhead $5.20 Using that data, use the flexible budget that was created and the following actual data, prepare
Lump-SumDeposit - As part of your personal budgeting process, you have determined that in each of the next five years you will have budget shortfalls.
P3-11. As part of your personal budgeting process, you have determined that in each of the next five years you will have budget shortfalls. In other words, you will need the amounts shown in the following table at the end of the given year to balance your budget?that is, inflows equal out-flows. You expect to be able to earn 8 p
I have a budget in place for to save for a vehicle but what are some situations that would derail my budget along with a plan for you to deal with these issues. My goal is $466 per month for a year this would pay for a down payment, taxes, license and insurance.
Gevent is organizing a musical event and has worked out flexible budget based on spectator number. The music group wage is 20'000 plus 15% of the total income. the hall rental fee is 50'000 plus 5% of the income. security staff charges( 1 officer/ 200 spectators)is 80.other fix expenses amount to 28'000 and the ticket price is 3
Ben Fleming has just received a job offer of $35,000 salary per year plus overtime pay, which will amount to 10% of his salary.
Ben Fleming has just received a job offer of $35,000 salary per year plus overtime pay, which will amount to 10% of his salary. Ben estimates his living costs as follows: Federal, state, and FICA taxes amount to . . . . . . . . . . . . . . . . . . . . 35% of income Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mr. Peng, Would you tackle this problem for me and give me insight on how to solve. Also, how would I know variable costs from fixed. Thanks!
Cash Receipts Budgeting: Reid Company is developing a forecast of March Cash receipts from credit sales. Credit sales for March are estimated to be $320,000. The Accounts Receivable balance at February 28 is $300,000, one-quarter representing January credit sales and the remainder from February credit sales. A
1. What is a flexible budget and how does it differ from a static budget? 2. Name the three criteria that should be considered in choosing an activity base on which to construct a flexible budget.
Vista Electronics, Inc. manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. Sales forecast for 20x0 (all in units to be shipped in 20x0) Product Units Price Light coil.........................60,000..............
Stumphouse Cheese Company is a wholesale distributor of blue cheese and ice cream. The following information is available for July 20x7. Estimated Sales Blue cheese 160,000 hoops at $10 each Ice cream 240,000 gallons at $5 each Desired Inventories Beginning
What does the comprehensible master budget plan encompass? Please be detailed.
ABC Company's flexible budget shows a selling price per unit of $150, variable cost per unit of $90, and fixed costs of $150,000. ABC Company's expected activity level was 6,000 units. What would its flexible budget show as income for 7,000 units? Is the answer a) $210,000 b) $245,000 c) $270,000 d) $360,000 e) None of the above
Cooper Tractors plans to sell 400,000 units of finished product in July 20x1. Management (1) anticipates a growth rate in sales of 5% per month thereafter and (2) desires a monthly ending finished-goods inventory (in units) of 80% of the following month's estimated sales. There are 300,000 completed units in the June 30, 20x1 in
According to it's original plan, Katta Consulting Services Company would charge its customers for service at $200 per hour in 2006. The company president expects consulting services provided to customers to reach 40,000 hours at that rate. The marketing manager, however, argues that actual results may range from 35,000 hours t
2. Based on the following production and sales data of Concrete Co. for March of the current year, prepare (a) a sales budget and (b) a production budget. Product T Product X Estimated inventory, March 1 28,000 units 20,000 units Desired inventory, March 31 32,000 units 15,000 units Expected sales volume:
Bank Management Printers, Inc. produces luxury check books with three checks and stubs per page. Each check book is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2007 included these data: Number of checkbooks 15,000 Selling price per book $20
Which of the following represents the normal sequence in which the indicated budgets are prepared? A. Direct Materials, Cash Sales B. Production, Cash, Income Statement C. Sales, Balance Sheet, Direct Labor D. Production, Manufacturing Overhead, Sales Over an extended period of time in which the final ending inventor
The sales department of a cellular phone company pays its salespeople $1,500 per month plus 25 % of each new subscriber's first month's billing. A new subscriber's first-month bill averages $80. Salespeople work 160 hrs a month (four weeks at 40 hrs/wk). If salespeople work more than 160 hrs /mon, they receive $12/hr for hrs in
You are a project manager in the marketing department for a county funded hospital. The hospital is launching an extensive public service program for cardiac health. The program will involve print ads in local newspapers, television spots, posters at local eateries and health clubs, and sponsorship of events at the county fair.
Who should be involved in the development of the budget? - Why is it important to have management approval of a budget? - To what extent does the budget serve as a goal and to what extent does the budget serve as a road map for management?
Given the following information for the latest period (5), answer the below questions. # 1. Actual costs to date are $550. # 2. The original budget through period 5 was $350. # 3. The revised costs for the project at completion (EAC) are $900. # 4, The sum of the earned values to date are $400. # 5. The total original budge
Dilbert Industries is developing its optimal capital budget for the coming year. They have identified the five potential projects shown below. Projects B and B* are mutually exclusive, while the remainder of the projects are independent. Project Cost Cash flow Life (n) IRR NPV (each year) A $400K $119,326 5
Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu
I am trying to create an annual operating budget that is broken down by department, for a healthcare facility. For example: emergency room, intensive care unit, pediatric unit, facilities, and overall master budget. All of my budgets for the individual departments must be properly proportionate to the overall budget. I'm going t
How much can be paid out in the form of a dividend and still have sufficient funds to cover a $6 million capital budget?
Morrison Movers's optimal capital structure calls for financing seventy percent of new assets with equity. Assuming that Morrison Movers has net income of $5 million, how much can be paid out in the form of a dividend and still have sufficient funds to cover a $6 million capital budget? a. $0, it needs all of the funds for exp
Using the most-likely case as the master budget, prepare two additional budgets for 2006?a worst-case and a best-case scenario. In a word document, discuss assumptions in each budget.
Prepare a 2006 master budget based on the 2003-2005 actual performances for a presentation about meeting company goals. Communicate your assumptions and calculations that went into the preparation.
7-30 Josh Sanchez is the chief financial officer of Bouquets.com, an Internet company that enables customers to order deliveries of flowers by accessing it's Web site. Sanchez is concerned with the efficiency and effectiveness of the finance function. He collects the following information for three finance actives in 2004:
What is the impact of having a large positive budget variance? (hint, budget $ -actual $= variance $)