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Managerial Accounting for a Northstar Company

I need help with these study problems. Thank you.
NORTHSTAR COMPANY

Maintenance department costs:
Budgeted operating costs per month $80,000
plus cost per machine-hour $0.50

Peak-period requirements:
Machine tools division 65%
Special products division 35%

October estimates of machine-hour activity:
Machine tools division 90,000
Special products division 60,000

October actual machine-hour activity:
Machine tools division 60,000
Special products division 60,000

Actual October costs:
Maintenance department fixed costs $85,000
Maintenance department variable costs $78,000

Check figure:
(1) Cost to Machine Tools Division $81,500

RESTON COMPANY
Income Statement
For the Month Ended May 31

Sales $900,000
Variable expenses 408,000
Contribution margin 492,000
Fixed expenses 465,000
Net operating income $27,000

Additional data:
Central Territory sales $400,000
Central Territory variable expenses $208,000
Central Territory fixed expenses $160,000
Eastern Territory fixed expenses $130,000

Awls sales $100,000
Pows sales $300,000
Awls variable expenses 25%
Pows variable expenses 61%
Awls fixed expenses, Central Territory $60,000
Pows fixed expenses, Central Territory $54,000

Check figure:
(1) Central segment margin $32,000
Severo S.A.
Income Statement for Last Month:
(Brazilian currency Real)
Division
Total
Company Cloth Leather
Sales 3,500,000 2,000,000 1,500,000
Variable expenses 1,721,000 960,000 761,000
Contribution margin 1,779,000 1,040,000 739,000
Traceable fixed expenses:
Advertising 612,000 300,000 312,000
Administration 427,000 210,000 217,000
Depreciation 229,000 115,000 114,000
Total traceable fixed expenses 1,268,000 625,000 643,000
Divisional segment margin 511,000 415,000 96,000
Common fixed expenses 390,000
Net operating income 121,000

Leather Division Product Lines
Garments Shoes Handbags
Sales 500,000 700,000 300,000
Traceable fixed expenses:
Advertising 80,000 112,000 120,000
Administration 30,000 35,000 42,000
Depreciation 25,000 56,000 33,000
Variable expenses as a percentage of sales 65% 40% 52%

Common administrative expenses 110,000

Handbag Markets
Domestic Foreign
Sales 200,000 100,000
Traceable fixed expenses:
Advertising 40,000 80,000
Variable expenses as a percentage of sales 43% 70%

Possible increase sales of garment line 200,000
Possible increase sales of shoe line 145,000
Campaign cost 30,000

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Solution Summary

The solution explains three problems in budgeting - Northstar Company, Savero S.A., and Reston Company

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