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Variance Analysis Flexible Budgets

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

Cash Budget

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

Flexible Budget and Static Budget

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.

Stumphouse Cheese Company

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

Production budget / cost of direct material purchases

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

Flexible-budget preparation and analysis

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

Normal Sequence of Budget Prepartion

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

Budget Performance Reporting

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

Budgeting for County Funded Hospital

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?

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?

Actual costs, original budget, revised costs, earned values

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

How would you advise Dr. White to prepare for reduced budgets?

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

Preparation of an annual operating budget

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


What is the impact of having a large positive budget variance? (hint, budget $ -actual $= variance $)

Determining level of production of Shocker Company

Shocker Company's sales budget shows quarterly sales for the next year as: Unit sales Quarter 1..... 10,000 units Quarter 2..... 8,000 units Quarter 3..... 12,000 units Quarter 4..... 14,000 units Company policy is to have a finished goods inventory at the end of each quarter equal to 20% o

Time-phased budget

(1) Example of a time phased budget & how do you figure the time with the cost. (2) You are given the total budget (3) You are given the prices of equipment and $ per hour of workers

Explanation to "Flexible Budget" question

Use any numbers A furniture manufacturer has a standard costing system based on direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity DLHs Overhead costs at the denominator activity level: Variable overhea

Comprehensive Budgeting for a University

(See attached file for full problem description) --- Suppose you are the controller of Western Idaho State University. The university president, Willa Redcloud, is preparing for her annual fund-raising campaign for 2001-2002. To set an appropriate target, she has asked you to prepare a budget for the academic year. You hav

How To Prepare a Master Budget for Victoria Kite

Victoria Kite Company sells kits on the web wants a master budget for the next three months beginning January 1, 2005. 1) It desires an ending minimum cash balance of $5,000 each month. 2) Sales forecasted at an average wholesale selling price of $8 per kite. In January, Victoria Kite is beginning just-in-time

Trial budget sheet how to set it up properly

If you start a business with $2,000 in the name of a proprierityship, the $2,000 is a loan of $1,200 and the rest is his money $800. he rented equipment bought supplies and hired people to help. at the end of the month he mailed out bills after 4 months he had to get rid of the business because of illness and he was to busy to k

Prepare a Budget for a General Medical/Surgical Unit

You are the nursing supervisor responsible for general medical/surgical units consisting of 50 beds. For the first time the chief financial officer has asked you to prepare a budget for your area of responsibility. Describe the process you will use to accomplish this task, including the information you will need, and the importa


1) What information do you need to create a budget? What sources would you consult to acquire this information? 2) Why is it important to have management approval of a budget?

Campaign Budget

You are managing a campaign for a state representative election. The candidate is running unopposed on the party ticket and will only face the incumbent. You have a budget of 150K cash and 9 months to election day. What does you tentative budget look like? (You have no overhead for campaign headquarters, LAN phone line, or ut