Questions
Orville Company’s standard and actual costs per unit are provided below for the most recent period....

Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 1200 units were actually produced.

Standard

Actual

Materials:

     Standard: 2-6 metres at $2.30 per m.

$5.98

     Actual: 2.1 metres at $2.60 per m.

$5.46

Direct labour:

     Standard: 2.2 hrs. at $7.90 per hr.

17.38

     Actual: 1.7 hrs. at $8.50 per hr.

14.45

Variable overhead:

     Standard: 2.2 hrs. at $4.60 per hr.

10.12

     Actual: 1.7 hrs. at $4.20 per hr.

7.14

Total unit cost

$33.48

$27,05

For simplicity, assume there was no inventory of materials at the beginning or end of the period.

Required:

Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

  1. Materials price variance

  1. Materials quantity variance
  1. Direct labour rate variance   
  1. Direct labour efficiency variance   

  1. Variable overhead efficiency variance   

                     6.        Variable overhead spending variance  

In: Accounting

Define various capital investment rules and discuss any potential shortcomings and some of the difficulties related...

  • Define various capital investment rules and discuss any potential shortcomings and some of the difficulties related to each. Which one would be the easiest to implement in actual situations? The most difficult?
  • Are the capital budgeting criteria appropriate for for-profit corporations are also applicable to non-for profit corporations? How should such entities make capital budgeting decisions? What about the US government? Should it evaluate spending proposals using these techniques?
  • A financial manager at Amazon is quoted as saying, "At Amazon, we use a stand-alone principle. Since we treat projects like minifirms in our evaluation process, we include financing costs because they are relevant at the firm level." Critically evaluate this principle.
  • What is forecasting risk? In general, would the degree of forecasting risk be greater for a new product or a cost-cutting proposal? Why?
  • Why does traditional NPV analysis tend to underestimate the true value of a capital budgeting project?
  • How important are statistics and computers simulations for determining the risk of a project?

In: Finance

Psychologists question the importance of biodiversity on the psychological health of humans in urban areas. Urban...

Psychologists question the importance of biodiversity on the psychological health of humans in urban areas. Urban residents often visit green spaces such as parks within urban environments. Fuller et al., conducted a study on 15 different green spaces to determine the impacts of green space on people's psychological health.

To assess how much people liked the green space, scientists had participants fill out a survey to determine their attachment to the green space. Scientists then then quantified the biodiversity of birds, plants, and butterflies at the different green spaces.

Here is a link to a dataset relating biodiversity to residents' attachment to a location.

Which biodiversity measurement (butterfly species; bird species; plant species) variable is most strongly correlated with residents' "attachment"?  

Calculate the correlation coefficients using the =correl() function in Excel.

What is the standard error of that correlation?  

Calculate your answer using Excel and report your answer to four decimal places.

Which species exhibited the weakest correlation?  

What is the correlation coefficient of the weakest relationship?  

Calculate your answer using Excel and report your answer to four decimal places.

What is the value of t for the correlation of bird species?

Report your answer to four decimal places

What is the p value associated with the t value calculated in Question 5? Use the excel formula =2*(1-(T.Dist(ABS(t,df,TRUE))))

This is a two-tailed t-test

degrees of freedom (df) = n - 2

We are using a cumulative probability function so we type TRUE

Report your answer to 4 decimal places

Based on this p value, should the authors reject or fail to reject the null hypothesis that bird species abundance is not correlated to attachment?

DATA SET

Site ID Attachment Area (ha) Butterfly Species Bird Species Plant Species
A 4.4 23.8 6 12 5.1
B 4.5 16 14 18 5.5
C 4.7 6.9 8 8 6.4
D 4.5 2.3 10 17 4.7
E 4.3 5.7 6 7 5.3
F 3.8 1.2 5 4 4.6
G 4.4 1.4 5 8 4.5
H 4.6 15 7 22 5.5
I 4.1 3.1 9 7 5.2
J 4.2 3.8 5 4 4.6
K 4.6 7.6 10 11 4.5
L 4.2 12.9 9 11 5
M 4.3 4 12 13 5
N 4.4 5.6 11 16 5.6
O 4.2 4.9 7 7 5.4

In: Math

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018 budget. Consider...

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018
budget. Consider the following information, and prepare the required budgets according to
the instructions that follow:
Sales Information
November 2017 unit sales (actual) 119,062
December 2017 unit sales (actual) 120,896
January 2018 unit sales (planned) 123,000
Sales price per unit $13.00
For all months in 2018, unit sales are expected to increase 1.1% over the previous month with the
exception of March, when a planned unit price increase to $13.55 is expected to decrease March
unit sales (compared to February) by 1.8%. The price increase will remain in effect for the rest of
the year.
Finished Goods Inventory Planning
Blackmore plans to keep 25% of the following month's unit sales on hand in finished goods
inventory at the end of any given month. Blackmore has that percentage of January's planned
sales (above) on hand at December 31, 2017.
Accounts Receivable and Collections
All sales are on account. Generally, 44% of each month's sales are collected in the month after
the sale, while 1.4% are never collected, and eventually written off. All other sales are collected
in the month of the sale.
Net (collectible) accounts receivable balance at December 31, 2017: $691,525.00
Material Inventory Costs and Planning
Each unit of finished product is made from 2 pounds of a metallic raw material that costs $3.63
per pound. Blackmore plans to keep 5% of the following month's raw materials production
needs in inventory at the end of any given month, and has 9,600 pounds of raw material on
hand at December 31, 2017.
Accounts Payable and Disbursements
All material purchases are on account. 32% of purchases are paid for in the month following the
purchase, with the remainder paid for in the month of purchase.
Accounts payable balance at December 31, 2017: $360,250.00
Direct Labor and Costs
Direct labor time per unit of finished goods 10 minutes
Direct labor cost $14.45 per hour
Manufacturing Overhead Costs
Indirect materials $0.25 per direct labor hour
Indirect labor 0.46 per direct labor hour
Maintenance 0.26 per direct labor hour
Utilities 0.44 per direct labor hour
Depreciation $9,700 per month
Insurance 4,800 per month
Property taxes 2,100 per month
All items except depreciation are paid in the month incurred.
Selling and Administrative Costs
Advertising $8,900 per month
Insurance 4,800 per month
Salaries 74,200 per month
Depreciation 5,400 per month
Other fixed costs 3,200 per month
All items except depreciation are paid in the month incurred.
Other Budgeting Items
Income tax expense is recorded at 25% of pretax net income. The company makes estimated
payments monthly for these amounts.
A budgeted purchase of fixed assets in the amount of $475,000 is planned for February, 2017.
Because the company uses a mid-year convention for depreciation calculations, this purchase
will not affect budgeted depreciation expense in the first quarter.
At December 31, 2017, Blackmore has $297,500 in cash. Hendrix maintains a minimum balance of
$250,000 in cash at all times, and any projected cash shortfall will be covered via a borrowing on
a line of credit. The line of credit accrues interest at 6% annualy (0.5% per month), and is repaid
as soon as Hendrix has sufficient cash to repay it while staying above the $250,000 minimum.
For the first quarter of 2018, do the following.
(a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1088 of your textbook.
(b) Prepare a production budget. This is similar to Illustration 21-5 on page 1089 of your textbook.
(c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7
       on page 1091 of your textbook.
(d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to
       Illustration 21-9 on page 1094 of your textbook.
(e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest
       dollar.) This is similar to Illustration 21-10 on page 1094 of your textbook.
(f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095
       of your textbook.
(g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest
       dollar.) This is similar to Illustration 21-13 on page 1096 of your textbook.
(h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1100 of your textbook.
     (You will need to prepare schedules for expected collections from customers and expected
      payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook
      for guidance.)

In: Accounting

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018 budget. Consider...

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018
budget. Consider the following information, and prepare the required budgets according to
the instructions that follow:
Sales Information
November 2017 unit sales (actual) 118,729
December 2017 unit sales (actual) 120,896
January 2018 unit sales (planned) 121,000
Sales price per unit $13.00
For all months in 2018, unit sales are expected to increase 1.2% over the previous month with the
exception of March, when a planned unit price increase to $13.75 is expected to decrease March
unit sales (compared to February) by 1.8%. The price increase will remain in effect for the rest of
the year.
Finished Goods Inventory Planning
Blackmore plans to keep 15% of the following month's unit sales on hand in finished goods
inventory at the end of any given month. Blackmore has that percentage of January's planned
sales (above) on hand at December 31, 2017.
Accounts Receivable and Collections
All sales are on account. Generally, 44% of each month's sales are collected in the month after
the sale, while 1.4% are never collected, and eventually written off. All other sales are collected
in the month of the sale.
Net (collectible) accounts receivable balance at December 31, 2017: $691,525.00
Material Inventory Costs and Planning
Each unit of finished product is made from 2 pounds of a metallic raw material that costs $3.68
per pound. Blackmore plans to keep 5% of the following month's raw materials production
needs in inventory at the end of any given month, and has 9,600 pounds of raw material on
hand at December 31, 2017.
Accounts Payable and Disbursements
All material purchases are on account. 32% of purchases are paid for in the month following the
purchase, with the remainder paid for in the month of purchase.
Accounts payable balance at December 31, 2017: $358,500.00
Direct Labor and Costs
Direct labor time per unit of finished goods 12 minutes
Direct labor cost $12.45 per hour
Manufacturing Overhead Costs
Indirect materials $0.25 per direct labor hour
Indirect labor 0.49 per direct labor hour
Maintenance 0.27 per direct labor hour
Utilities 0.39 per direct labor hour
Depreciation $9,700 per month
Insurance 4,800 per month
Property taxes 2,100 per month
All items except depreciation are paid in the month incurred.
Selling and Administrative Costs
Advertising $8,900 per month
Insurance 4,800 per month
Salaries 74,200 per month
Depreciation 5,400 per month
Other fixed costs 3,200 per month
All items except depreciation are paid in the month incurred.
Other Budgeting Items
Income tax expense is recorded at 25% of pretax net income. The company makes estimated
payments monthly for these amounts.
A budgeted purchase of fixed assets in the amount of $475,000 is planned for February, 2017.
Because the company uses a mid-year convention for depreciation calculations, this purchase
will not affect budgeted depreciation expense in the first quarter.
At December 31, 2017, Blackmore has $297,500 in cash. Hendrix maintains a minimum balance of
$250,000 in cash at all times, and any projected cash shortfall will be covered via a borrowing on
a line of credit. The line of credit accrues interest at 6% annualy (0.5% per month), and is repaid
as soon as Hendrix has sufficient cash to repay it while staying above the $250,000 minimum.
For the first quarter of 2018, do the following.
(a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1088 of your textbook.
(b) Prepare a production budget. This is similar to Illustration 21-5 on page 1089 of your textbook.
(c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7
       on page 1091 of your textbook.
(d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to
       Illustration 21-9 on page 1094 of your textbook.
(e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest
       dollar.) This is similar to Illustration 21-10 on page 1094 of your textbook.
(f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095
       of your textbook.
(g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest
       dollar.) This is similar to Illustration 21-13 on page 1096 of your textbook.
(h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1100 of your textbook.
     (You will need to prepare schedules for expected collections from customers and expected
      payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook
      for guidance.)
Rules:
* Use Excel's functionality to your benefit. Points are lost for lack of formula.
* Use proper formats for schedules, following the referenced textbook examples.
* Use dollar-signs and underscores where appropriate.
* Double-check your work! Verify your formula and logic!
Grading Guidelines:
Effective Use of Excel 40%
Facts, Logic 20%
Completeness 30%
Spelling, Punctuation, Value Format 10%

In: Accounting

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018 budget. Consider...

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018
budget. Consider the following information, and prepare the required budgets according to
the instructions that follow:
Sales Information
November 2017 unit sales (actual) 118,729
December 2017 unit sales (actual) 120,896
January 2018 unit sales (planned) 121,000
Sales price per unit $13.00
For all months in 2018, unit sales are expected to increase 1.2% over the previous month with the
exception of March, when a planned unit price increase to $13.75 is expected to decrease March
unit sales (compared to February) by 1.8%. The price increase will remain in effect for the rest of
the year.
Finished Goods Inventory Planning
Blackmore plans to keep 15% of the following month's unit sales on hand in finished goods
inventory at the end of any given month. Blackmore has that percentage of January's planned
sales (above) on hand at December 31, 2017.
Accounts Receivable and Collections
All sales are on account. Generally, 44% of each month's sales are collected in the month after
the sale, while 1.4% are never collected, and eventually written off. All other sales are collected
in the month of the sale.
Net (collectible) accounts receivable balance at December 31, 2017: $691,525.00
Material Inventory Costs and Planning
Each unit of finished product is made from 2 pounds of a metallic raw material that costs $3.68
per pound. Blackmore plans to keep 5% of the following month's raw materials production
needs in inventory at the end of any given month, and has 9,600 pounds of raw material on
hand at December 31, 2017.
Accounts Payable and Disbursements
All material purchases are on account. 32% of purchases are paid for in the month following the
purchase, with the remainder paid for in the month of purchase.
Accounts payable balance at December 31, 2017: $358,500.00
Direct Labor and Costs
Direct labor time per unit of finished goods 12 minutes
Direct labor cost $12.45 per hour
Manufacturing Overhead Costs
Indirect materials $0.25 per direct labor hour
Indirect labor 0.49 per direct labor hour
Maintenance 0.27 per direct labor hour
Utilities 0.39 per direct labor hour
Depreciation $9,700 per month
Insurance 4,800 per month
Property taxes 2,100 per month
All items except depreciation are paid in the month incurred.
Selling and Administrative Costs
Advertising $8,900 per month
Insurance 4,800 per month
Salaries 74,200 per month
Depreciation 5,400 per month
Other fixed costs 3,200 per month
All items except depreciation are paid in the month incurred.
Other Budgeting Items
Income tax expense is recorded at 25% of pretax net income. The company makes estimated
payments monthly for these amounts.
A budgeted purchase of fixed assets in the amount of $475,000 is planned for February, 2017.
Because the company uses a mid-year convention for depreciation calculations, this purchase
will not affect budgeted depreciation expense in the first quarter.
At December 31, 2017, Blackmore has $297,500 in cash. Hendrix maintains a minimum balance of
$250,000 in cash at all times, and any projected cash shortfall will be covered via a borrowing on
a line of credit. The line of credit accrues interest at 6% annualy (0.5% per month), and is repaid
as soon as Hendrix has sufficient cash to repay it while staying above the $250,000 minimum.
For the first quarter of 2018, do the following.
(a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1088 of your textbook.
(b) Prepare a production budget. This is similar to Illustration 21-5 on page 1089 of your textbook.
(c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7
       on page 1091 of your textbook.
(d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to
       Illustration 21-9 on page 1094 of your textbook.
(e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest
       dollar.) This is similar to Illustration 21-10 on page 1094 of your textbook.
(f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095
       of your textbook.
(g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest
       dollar.) This is similar to Illustration 21-13 on page 1096 of your textbook.
(h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1100 of your textbook.
     (You will need to prepare schedules for expected collections from customers and expected
      payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook
      for guidance.)
Rules:
* Use Excel's functionality to your benefit. Points are lost for lack of formula.
* Use proper formats for schedules, following the referenced textbook examples.
* Use dollar-signs and underscores where appropriate.
* Double-check your work! Verify your formula and logic!
Grading Guidelines:
Effective Use of Excel 40%
Facts, Logic 20%
Completeness 30%
Spelling, Punctuation, Value Format 10%

In: Accounting

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018 budget. Consider...

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018
budget. Consider the following information, and prepare the required budgets according to
the instructions that follow:
Sales Information
November 2017 unit sales (actual) 118,729
December 2017 unit sales (actual) 120,896
January 2018 unit sales (planned) 121,000
Sales price per unit $13.00
For all months in 2018, unit sales are expected to increase 1.2% over the previous month with the
exception of March, when a planned unit price increase to $13.75 is expected to decrease March
unit sales (compared to February) by 1.8%. The price increase will remain in effect for the rest of
the year.
Finished Goods Inventory Planning
Blackmore plans to keep 15% of the following month's unit sales on hand in finished goods
inventory at the end of any given month. Blackmore has that percentage of January's planned
sales (above) on hand at December 31, 2017.
Accounts Receivable and Collections
All sales are on account. Generally, 44% of each month's sales are collected in the month after
the sale, while 1.4% are never collected, and eventually written off. All other sales are collected
in the month of the sale.
Net (collectible) accounts receivable balance at December 31, 2017: $691,525.00
Material Inventory Costs and Planning
Each unit of finished product is made from 2 pounds of a metallic raw material that costs $3.68
per pound. Blackmore plans to keep 5% of the following month's raw materials production
needs in inventory at the end of any given month, and has 9,600 pounds of raw material on
hand at December 31, 2017.
Accounts Payable and Disbursements
All material purchases are on account. 32% of purchases are paid for in the month following the
purchase, with the remainder paid for in the month of purchase.
Accounts payable balance at December 31, 2017: $358,500.00
Direct Labor and Costs
Direct labor time per unit of finished goods 12 minutes
Direct labor cost $12.45 per hour
Manufacturing Overhead Costs
Indirect materials $0.25 per direct labor hour
Indirect labor 0.49 per direct labor hour
Maintenance 0.27 per direct labor hour
Utilities 0.39 per direct labor hour
Depreciation $9,700 per month
Insurance 4,800 per month
Property taxes 2,100 per month
All items except depreciation are paid in the month incurred.
Selling and Administrative Costs
Advertising $8,900 per month
Insurance 4,800 per month
Salaries 74,200 per month
Depreciation 5,400 per month
Other fixed costs 3,200 per month
All items except depreciation are paid in the month incurred.
Other Budgeting Items
Income tax expense is recorded at 25% of pretax net income. The company makes estimated
payments monthly for these amounts.
A budgeted purchase of fixed assets in the amount of $475,000 is planned for February, 2017.
Because the company uses a mid-year convention for depreciation calculations, this purchase
will not affect budgeted depreciation expense in the first quarter.
At December 31, 2017, Blackmore has $297,500 in cash. Hendrix maintains a minimum balance of
$250,000 in cash at all times, and any projected cash shortfall will be covered via a borrowing on
a line of credit. The line of credit accrues interest at 6% annualy (0.5% per month), and is repaid
as soon as Hendrix has sufficient cash to repay it while staying above the $250,000 minimum.
For the first quarter of 2018, do the following.
(a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1088 of your textbook.
(b) Prepare a production budget. This is similar to Illustration 21-5 on page 1089 of your textbook.
(c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7
       on page 1091 of your textbook.
(d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to
       Illustration 21-9 on page 1094 of your textbook.
(e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest
       dollar.) This is similar to Illustration 21-10 on page 1094 of your textbook.
(f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095
       of your textbook.
(g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest
       dollar.) This is similar to Illustration 21-13 on page 1096 of your textbook.
(h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1100 of your textbook.
     (You will need to prepare schedules for expected collections from customers and expected
      payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook
      for guidance.)
Rules:
* Use Excel's functionality to your benefit. Points are lost for lack of formula.
* Use proper formats for schedules, following the referenced textbook examples.
* Use dollar-signs and underscores where appropriate.
* Double-check your work! Verify your formula and logic!
Grading Guidelines:
Effective Use of Excel 40%
Facts, Logic 20%
Completeness 30%
Spelling, Punctuation, Value Format 10%

In: Accounting

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018 budget. Consider...

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018
budget. Consider the following information, and prepare the required budgets according to
the instructions that follow:
Sales Information
November 2017 unit sales (actual) 119,062
December 2017 unit sales (actual) 120,896
January 2018 unit sales (planned) 123,000
Sales price per unit $13.00
For all months in 2018, unit sales are expected to increase 1.1% over the previous month with the
exception of March, when a planned unit price increase to $13.55 is expected to decrease March
unit sales (compared to February) by 1.8%. The price increase will remain in effect for the rest of
the year.
Finished Goods Inventory Planning
Blackmore plans to keep 25% of the following month's unit sales on hand in finished goods
inventory at the end of any given month. Blackmore has that percentage of January's planned
sales (above) on hand at December 31, 2017.
Accounts Receivable and Collections
All sales are on account. Generally, 44% of each month's sales are collected in the month after
the sale, while 1.4% are never collected, and eventually written off. All other sales are collected
in the month of the sale.
Net (collectible) accounts receivable balance at December 31, 2017: $691,525.00
Material Inventory Costs and Planning
Each unit of finished product is made from 2 pounds of a metallic raw material that costs $3.63
per pound. Blackmore plans to keep 5% of the following month's raw materials production
needs in inventory at the end of any given month, and has 9,600 pounds of raw material on
hand at December 31, 2017.
Accounts Payable and Disbursements
All material purchases are on account. 32% of purchases are paid for in the month following the
purchase, with the remainder paid for in the month of purchase.
Accounts payable balance at December 31, 2017: $360,250.00
Direct Labor and Costs
Direct labor time per unit of finished goods 10 minutes
Direct labor cost $14.45 per hour
Manufacturing Overhead Costs
Indirect materials $0.25 per direct labor hour
Indirect labor 0.46 per direct labor hour
Maintenance 0.26 per direct labor hour
Utilities 0.44 per direct labor hour
Depreciation $9,700 per month
Insurance 4,800 per month
Property taxes 2,100 per month
All items except depreciation are paid in the month incurred.
Selling and Administrative Costs
Advertising $8,900 per month
Insurance 4,800 per month
Salaries 74,200 per month
Depreciation 5,400 per month
Other fixed costs 3,200 per month
All items except depreciation are paid in the month incurred.
Other Budgeting Items
Income tax expense is recorded at 25% of pretax net income. The company makes estimated
payments monthly for these amounts.
A budgeted purchase of fixed assets in the amount of $475,000 is planned for February, 2017.
Because the company uses a mid-year convention for depreciation calculations, this purchase
will not affect budgeted depreciation expense in the first quarter.
At December 31, 2017, Blackmore has $297,500 in cash. Hendrix maintains a minimum balance of
$250,000 in cash at all times, and any projected cash shortfall will be covered via a borrowing on
a line of credit. The line of credit accrues interest at 6% annualy (0.5% per month), and is repaid
as soon as Hendrix has sufficient cash to repay it while staying above the $250,000 minimum.
For the first quarter of 2018, do the following.
(a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1088 of your textbook.
(b) Prepare a production budget. This is similar to Illustration 21-5 on page 1089 of your textbook.
(c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7
       on page 1091 of your textbook.
(d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to
       Illustration 21-9 on page 1094 of your textbook.
(e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest
       dollar.) This is similar to Illustration 21-10 on page 1094 of your textbook.
(f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095
       of your textbook.
(g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest
       dollar.) This is similar to Illustration 21-13 on page 1096 of your textbook.
(h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1100 of your textbook.
     (You will need to prepare schedules for expected collections from customers and expected
      payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook

      for guidance.)

HELP WITH Part E,F, G, H


In: Accounting

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018 budget. Consider...

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018
budget. Consider the following information, and prepare the required budgets according to
the instructions that follow:
Sales Information
November 2017 unit sales (actual) 117,405
December 2017 unit sales (actual) 120,896
January 2018 unit sales (planned) 122,000
Sales price per unit $13.00
For all months in 2018, unit sales are expected to increase 1.3% over the previous month with the
exception of March, when a planned unit price increase to $13.25 is expected to decrease March
unit sales (compared to February) by 1.8%. The price increase will remain in effect for the rest of
the year.
Finished Goods Inventory Planning
Blackmore plans to keep 15% of the following month's unit sales on hand in finished goods
inventory at the end of any given month. Blackmore has that percentage of January's planned
sales (above) on hand at December 31, 2017.
Accounts Receivable and Collections
All sales are on account. Generally, 44% of each month's sales are collected in the month after
the sale, while 1.2% are never collected, and eventually written off. All other sales are collected
in the month of the sale.
Net (collectible) accounts receivable balance at December 31, 2017: $691,525.00
Material Inventory Costs and Planning
Each unit of finished product is made from 2 pounds of a metallic raw material that costs $3.66
per pound. Blackmore plans to keep 5% of the following month's raw materials production
needs in inventory at the end of any given month, and has 9,600 pounds of raw material on
hand at December 31, 2017.
Accounts Payable and Disbursements
All material purchases are on account. 32% of purchases are paid for in the month following the
purchase, with the remainder paid for in the month of purchase.
Accounts payable balance at December 31, 2017: $362,000.00
Direct Labor and Costs
Direct labor time per unit of finished goods 15 minutes
Direct labor cost $10.05 per hour
Manufacturing Overhead Costs
Indirect materials $0.26 per direct labor hour
Indirect labor 0.54 per direct labor hour
Maintenance 0.25 per direct labor hour
Utilities 0.34 per direct labor hour
Depreciation $9,700 per month
Insurance 4,800 per month
Property taxes 2,100 per month
All items except depreciation are paid in the month incurred.
Selling and Administrative Costs
Advertising $8,900 per month
Insurance 4,800 per month
Salaries 74,200 per month
Depreciation 5,400 per month
Other fixed costs 3,200 per month
All items except depreciation are paid in the month incurred.
Other Budgeting Items
Income tax expense is recorded at 25% of pretax net income. The company makes estimated
payments monthly for these amounts.
A budgeted purchase of fixed assets in the amount of $475,000 is planned for February, 2017.
Because the company uses a mid-year convention for depreciation calculations, this purchase
will not affect budgeted depreciation expense in the first quarter.
At December 31, 2017, Blackmore has $297,500 in cash. Hendrix maintains a minimum balance of
$250,000 in cash at all times, and any projected cash shortfall will be covered via a borrowing on
a line of credit. The line of credit accrues interest at 6% annualy (0.5% per month), and is repaid
as soon as Hendrix has sufficient cash to repay it while staying above the $250,000 minimum.
For the first quarter of 2018, do the following.
(a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1088 of your textbook.
(b) Prepare a production budget. This is similar to Illustration 21-5 on page 1089 of your textbook.
(c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7
       on page 1091 of your textbook.
(d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to
       Illustration 21-9 on page 1094 of your textbook.
(e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest
       dollar.) This is similar to Illustration 21-10 on page 1094 of your textbook.
(f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095
       of your textbook.
(g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest
       dollar.) This is similar to Illustration 21-13 on page 1096 of your textbook.
(h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1100 of your textbook.
     (You will need to prepare schedules for expected collections from customers and expected
      payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook
      for guidance.)
Rules:
* Use Excel's functionality to your benefit. Points are lost for lack of formula.
* Use proper formats for schedules, following the referenced textbook examples.
* Use dollar-signs and underscores where appropriate.
* Double-check your work! Verify your formula and logic!
Grading Guidelines:
Effective Use of Excel 40%
Facts, Logic 20%
Completeness 30%
Spelling, Punctuation, Value Format 10%

In: Accounting

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018 budget. Consider...

You are an managerial accountant for Blackmore Industries, and you are preparing the 2018
budget. Consider the following information, and prepare the required budgets according to
the instructions that follow:
Sales Information
November 2017 unit sales (actual) 118,729
December 2017 unit sales (actual) 120,896
January 2018 unit sales (planned) 121,000
Sales price per unit $13.00
For all months in 2018, unit sales are expected to increase 1.2% over the previous month with the
exception of March, when a planned unit price increase to $13.75 is expected to decrease March
unit sales (compared to February) by 1.8%. The price increase will remain in effect for the rest of
the year.
Finished Goods Inventory Planning
Blackmore plans to keep 15% of the following month's unit sales on hand in finished goods
inventory at the end of any given month. Blackmore has that percentage of January's planned
sales (above) on hand at December 31, 2017.
Accounts Receivable and Collections
All sales are on account. Generally, 44% of each month's sales are collected in the month after
the sale, while 1.4% are never collected, and eventually written off. All other sales are collected
in the month of the sale.
Net (collectible) accounts receivable balance at December 31, 2017: $691,525.00
Material Inventory Costs and Planning
Each unit of finished product is made from 2 pounds of a metallic raw material that costs $3.68
per pound. Blackmore plans to keep 5% of the following month's raw materials production
needs in inventory at the end of any given month, and has 9,600 pounds of raw material on
hand at December 31, 2017.
Accounts Payable and Disbursements
All material purchases are on account. 32% of purchases are paid for in the month following the
purchase, with the remainder paid for in the month of purchase.
Accounts payable balance at December 31, 2017: $358,500.00
Direct Labor and Costs
Direct labor time per unit of finished goods 12 minutes
Direct labor cost $12.45 per hour
Manufacturing Overhead Costs
Indirect materials $0.25 per direct labor hour
Indirect labor 0.49 per direct labor hour
Maintenance 0.27 per direct labor hour
Utilities 0.39 per direct labor hour
Depreciation $9,700 per month
Insurance 4,800 per month
Property taxes 2,100 per month
All items except depreciation are paid in the month incurred.
Selling and Administrative Costs
Advertising $8,900 per month
Insurance 4,800 per month
Salaries 74,200 per month
Depreciation 5,400 per month
Other fixed costs 3,200 per month
All items except depreciation are paid in the month incurred.
Other Budgeting Items
Income tax expense is recorded at 25% of pretax net income. The company makes estimated
payments monthly for these amounts.
A budgeted purchase of fixed assets in the amount of $475,000 is planned for February, 2017.
Because the company uses a mid-year convention for depreciation calculations, this purchase
will not affect budgeted depreciation expense in the first quarter.
At December 31, 2017, Blackmore has $297,500 in cash. Hendrix maintains a minimum balance of
$250,000 in cash at all times, and any projected cash shortfall will be covered via a borrowing on
a line of credit. The line of credit accrues interest at 6% annualy (0.5% per month), and is repaid
as soon as Hendrix has sufficient cash to repay it while staying above the $250,000 minimum.
For the first quarter of 2018, do the following.
(a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1088 of your textbook.
(b) Prepare a production budget. This is similar to Illustration 21-5 on page 1089 of your textbook.
(c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7
       on page 1091 of your textbook.
(d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to
       Illustration 21-9 on page 1094 of your textbook.
(e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest
       dollar.) This is similar to Illustration 21-10 on page 1094 of your textbook.
(f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095
       of your textbook.
(g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest
       dollar.) This is similar to Illustration 21-13 on page 1096 of your textbook.
(h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1100 of your textbook.
     (You will need to prepare schedules for expected collections from customers and expected
      payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook
      for guidance.)
Rules:
* Use Excel's functionality to your benefit. Points are lost for lack of formula.
* Use proper formats for schedules, following the referenced textbook examples.
* Use dollar-signs and underscores where appropriate.
* Double-check your work! Verify your formula and logic!
Grading Guidelines:
Effective Use of Excel 40%
Facts, Logic 20%
Completeness 30%
Spelling, Punctuation, Value Format 10%

In: Accounting