Question
In: Accounting
b) Dub's Records Stuff estimates its sales for the upcoming period and prepared the following budget:...
-
b) Dub's Records Stuff estimates its sales for the upcoming period and prepared the following budget:
|
Units |
25,000 |
|
Sales |
$20 |
|
Less variable costs: |
|
|
Manufacturing costs |
$3 |
|
Selling and administrative costs |
$2 |
|
Contribution margin |
$15 |
|
Less fixed costs: |
|
|
Manufacturing costs |
$14,000 |
|
Selling and administrative costs |
$12,000 |
|
Net income |
TBD |
Assuming the manager produced 190K in sales, 110K of total variable costs and 14K for total fixed costs for 15,000 units. Of these variable costs, 40K related to selling and administrative costs. Comment if these are favourable or unfavourable. Make sure to use full dollar impacts so it is clear to management the magnitude of any variances. Comment on if the manager has had a successful year.
-
1) The flex budget method (Give full values vs. per unit)
-
2) The static budget method (Give full budget vs. per unit)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Orcutt Corporation prepared a budget last period that called for sales of 9,000 units at a...
Orcutt Corporation prepared a budget last period that called for
sales of 9,000 units at a price of $12 each. The costs were
estimated to be $5 variable per unit and $27,000 fixed. During the
period, actual production and actual sales were 9,200 units. The
actual selling price was $12.15 per unit. Variable costs were $5.90
per unit. Actual fixed costs were $27,000.
1. Flexible-budget Ol variance
2. Static-budget Ol variance
3. Sales volume Ol variance
4. Static-budget sales variance...
Mantle Corp. prepared a budget last period that called for sales of 20,000 units at a...
Mantle Corp. prepared a budget last period that called for sales
of 20,000 units at a price of $20 each. The costs per unit were
estimated to amount to $10 variable and $4 fixed. During the
period, production was exactly equal to actual sales of 24,000
units. The selling price was $19.00 per unit. Variable costs were
$12 per unit. Fixed costs actually incurred were $95,000.
a) Prepare a report to show the difference between the actual
contribution margin per...
Which of the following is TRUE regarding the master budget? A. The sales budget is prepared...
Which of the following is TRUE regarding the master budget?
A.
The sales budget is prepared after the production budget.
B.
The budgeting process starts with the cash budget.
C.
The direct materials budget is prepared before the production
budget.
D.
Budgeted balance sheet is prepared after the budgeted income
statement.
In preparing an operating budget, the sales budget is prepared first. Which of the following is...
In preparing an operating budget, the sales budget is prepared
first. Which of the following is prepared next?
Forecast Sales Volume and Sales Budget Guardian Framing Inc. prepared the following sales budget for 2016:...
Forecast Sales Volume and Sales Budget
Guardian Framing Inc. prepared the following sales budget for
2016:
Guardian Framing Inc.
Sales Budget
For the Year Ending December 31, 2016
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East
18,800
$23
$432,400
Central
4,900
23
112,700
West
4,500
23
103,500
Total
28,200
$648,600
12" × 16" Frame:
East
12,500
$24
$300,000
Central
2,900
24
69,600
West
1,900
24
45,600
Total
17,300
$415,200
Total revenue from...
Forecast Sales Volume and Sales Budget Raphael Frame Company prepared the following sales budget for 2016:...
Forecast Sales Volume and Sales Budget
Raphael Frame Company prepared the following sales budget for
2016:
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 2016
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East
8,500
$16
$136,000
Central
6,200
16
99,200
West
12,600
16
201,600
Total
27,300
$436,800
12" × 16" Frame:
East
3,800
$30
$114,000
Central
3,000
30
90,000
West
5,400
30
162,000
Total
12,200
$366,000
Total revenue from...
The MendezCompany has prepared a sales budget of 42,000 finished units for a? 3-month period. The...
The MendezCompany has prepared a sales budget of 42,000 finished
units for a? 3-month period. The company has an inventory of 14,000
units of finished goods on hand at December 31 and has a target
finished goods inventory of 18,000 units at the end of the
succeeding quarter. It takes 4 gallons of direct materials to make
one unit of finished product. The company has an inventory of
60,000 gallons of direct materials at December 31 and has a target...
Guardian Framing Inc. prepared the following sales budget for 2016: Guardian Framing Inc. Sales Budget For...
Guardian Framing Inc. prepared the following sales budget for
2016: Guardian Framing Inc. Sales Budget For the Year Ending
December 31, 2016 Product and Area Unit Sales Volume Unit Selling
Price Total Sales 8" × 10" Frame: East 18,800 $23 $432,400 Central
4,900 23 112,700 West 4,500 23 103,500 Total 28,200 $648,600 12" ×
16" Frame: East 12,500 $24 $300,000 Central 2,900 24 69,600 West
1,900 24 45,600 Total 17,300 $415,200 Total revenue from sales
$1,063,800 At the end of...
Valley Trails is preparing the Cash Budget for the upcoming period, and is concerned about their...
Valley Trails is
preparing the Cash Budget for the upcoming period, and is concerned
about their ability to meet their financial obligations in the
short term. Following is information relating to Valley’s financial
performance:
Beginning-of-period
balances:
Accounts Receivable:
$54,000
Accounts Payable:
$27,000
Accumulated Factory
Depreciation: $288,000
Cash: $13,500
Estimates for
end-of-period balances:
Accounts Receivable:
$67,500
Accounts Payable:
$18,000
Accumulated Factory
Depreciation: $296,000
Budgeted activity
levels for the period:
Sales: $250,000
Purchases of Direct
Materials: $44,800
Direct Labor Wages:
$75,000
Manufacturing...
Valley Trails is preparing the Cash Budget for the upcoming period, and is concerned about their...
Valley Trails is preparing the Cash Budget for the upcoming
period, and is concerned about their ability to meet their
financial obligations in the short term. Following is information
relating to Valley’s financial performance:
Beginning-of-period balances:
Accounts Receivable: $54,000
Accounts Payable: $27,000
Accumulated Factory Depreciation: $288,000
Cash: $13,500
Estimates for end-of-period balances:
Accounts Receivable: $67,500
Accounts Payable: $18,000
Accumulated Factory Depreciation: $296,000
Budgeted activity levels for the period:
Sales: $250,000
Purchases of Direct Materials: $44,800
Direct Labor Wages: $75,000
Manufacturing...
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