Tempo Company's fixed budget (based on sales of 10,000 units) folllows.Fixed BudgetDirect laborSales (10,000 units x $218 per unit)CostsDirect materialsIndirect materialsSupervisor salarySales commissionsShippingAdministrative salariesDepreciation-Office equipmentInsuranceOffice rentIncome2,180,000230,000430,000270,00030,00090,000140,00080,00050,00020,00030,000810,0001. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.Variable costsTEMPO COMPANYFlexible BudgetVariable Amountper UnitTotal FixedCostFlexible Budget for:Units Sales Unit Sales ofof 8,00012,0000.0000

Step 1: Compute total variable cost per unitTotal variable costs include direct labor, supervisor…

Answered: Tempo Company's fixed budget (based on…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...

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Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of activity and the actual operating results listed below for the 29,000- unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 29,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Professional labor cost budget for a service company Based on the data in Exercise 7 and assuming that the average compensation per hour for staff is 40 and for partners is 175, prepare a professional labor cost budget for each department forLundquist Fretwell, CPAs, for the year ending May 31, 20Y8. Use the following column headings:
Professional labor cost budget Based on the data in Exercise 13-5 and assuming that the average compensation per hour for staff is $36 and for partners is $300. prepare a professional labor cost budget for Day & Spieth, CPAs, for the year ending March 31. 20Y6. Use the following column headings:
The following is the budgeted information of 3Z Company for the year 2021: Service Departments Producing Departments S1 S2 P1 P2 Budgeted overhead before distribution of service costs Direct labor hours Machine hours Number of employees Area occupied (sq ft) P300,000.00 P 150,000.00 P1,500,000.00 P750,000.00 6,000 45,400 25 30,000 33,250 5,000 150 50,000 13 8 4,200 1,500 Actual prime cost for the last quarter Of 2021 in the production of 15,000 units of Product MM is summarized below: P1 P2 11,250 hrs Direct labor hours 1,200 DLh @ P35 6,550 DLH @ P35 Machine hours 1,250 hrs Materials P75 per unit P5 per unit Additional information: • The company computes predetermined overhead rates based on machine hours in P1 and direct labor hours in P2, after distributing service costs using direct method. Sl costs are distributed based on area occupied and S2 costs are based on number of employees. Required: Compute for the total production costs of Product MM.
A company's fixed budget (based on 8,000 units) follows. Compute total fixed costs. Fixed Budget Sales (8,000 × $730 per unit) Costs Direct materials Direct labor Indirect materials Supervisory salary Sales commissions Shipping Administrative salaries Depreciation - Office equipment Insurance Office rent Income Multiple Choice O O O $752,000. $618,000. $1,076,000. $ 5,840,000 584,000 968,000 354,000 134,000 284,000 312,000 424,000 74,000 44,000 76,000 $ 2,586,000
Budget Performance Report for a Cost CenterThe Eastern District of Adelson Inc. is organized as a cost center. The budget for the Eastern District of Adelson Inc. for themonth ended December 31 is as follows:Sales salaries $819,840System administration salaries 448,152Customer service salaries 152,600Billing salaries 98,760Maintenance 271,104Depreciation of plant and equipment 92,232Insurance and property taxes 41,280Total $1,923,968During December, the costs incurred in the Eastern District were as follows:Sales salaries $818,880System administration salaries 447,720Customer service salaries 183,120Billing salaries 98,100Maintenance 273,000Depreciation of plant and equipment 92,232Insurance and property taxes 41,400Total $1,954,452Required:1. Prepare a budget performance report for the manager of the Eastern District of Adelson for the month of December.Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank, or enter zero "0".
Vishal empo Company's fixed budget (based on sales of 14,000 units) folllows.Fixed BudgetSales (14,000 units × $207 per unit)2,898,000Costs Direct materials336,000Direct labor602,000Indirect materials364,000Supervisor salary136,000Sales commissions112,000Shipping210,000Administrative salaries186,000Depreciation—Office equipment156,000Insurance126,000Office rent136,000Income534,000 1. Compute total variable cost per unit.2. Compute total fixed costs.3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. TEMPO COMPANY Flexible BudgetFlexible Budget for: Variable Amount per UnitTotal Fixed CostUnits Sales of 12,000Unit Sales of 16,000Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs0.00 00Contribution margin Fixed costs Supervisor salary Administration salaries…
Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June. Quarter 1Quarter 2Sales$248,470$251,539Direct material purchases120,295128,832Direct labor76,55374,289Manufacturing overhead26,00024,400Selling and administration expenses33,50033,500Depreciation included in selling and administration expenses 2,000 2,500 Collection from customers230,524220,116Cash payments for purchases114,345118,346 Additional data:Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000. The company has a 15% open line of credit for $70 000 with their bank. Required: a) Use this information to prepare a cash budget for the first two quarters of the year. bi) Briefly comment on Picta Company’s expected cashflow position in the first two quarters of the year.
A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Sales revenue Commission expense (10% of sale) Salaries expense Miscellaneous expense-5% of sales Rent expense Utilities expense Insurance expense Depreciation expense Mar $120,000 12,000 33,000 6,000 3,900 2,000 2,700 4,400 OA. $53,900 OB. $50,500 OC. $45,400 OD. $56,400 Apr $80,000 8,000 33.000 4,000 3.900 2,000 2,700 4,400 May $130,000 13,000 33,000 6.500 3.900 2,000 2,700 4,400 Jun $110,000 11,000 33,000 5,500 3,900 2,000 2,700 4,400 The budget assumes that 60% of commission expenses are paid in the month they were incurred, and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month incurred and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on…
Budgeted information for X Ltd for the following period, analyzed by product, is shown below: Product A Product B Product C Selling price per unit $11 $10.5 $8 Variable costs per unit $5.8 $6 $5.2 Attributable fixed costs $275000 $337000 $296000 Sales Units for Product A 394600, for Product B 591900 and for product C 315680, General fixed costs, which are apportioned to products as a percentage sale are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products. (2) Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect…
Budgeted information for X Ltd for the following period, analyzed by product, is shown below: Product A Product B Product C Selling price per unit $11 $10.5 $8 Variable costs per unit $5.8 $6 $5.2 Attributable fixed costs $275000 $337000 $296000 Sales Units for Product A 394600, for Product B 591900 and for product C 315680, General fixed costs, which are apportioned to products as a percentage sale are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products. (2) Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect…

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