The Valley Fireworks Limited (“Valley") manufactures special firework display kits to sell to responsible organisations only. The following information is taken from its budget for 2021: Selling price Direct materials $ per unit S per annum 500 60 Direct labour 180 10 20 Variable production overhead Variable distribution overhead Fixed production overhead Fixed administrative overhead 96,000 144,000 The budget is assumed that opening and closing inventory are 20 kits and annual production equals to annual sales which are 1,200 kits. Its financial ended is on 31 December.
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- Jimbo has three production departments and a support department. The budgeted production overhead cost for the year ended 31st December 2020 is as follows: $ Indirect wages Department Assembly Department Painting Department Packaging Support Department 23,000 30,000 26,000 18,800 To be allocated Other cost Consumable materials 20,000 Insurance: Plant 30,000 Depreciation: Plant 22,000 Power 15,000 Rent 21,000 Light and heat 14,000 The following is the data of an appropriate basis of apportionment: Department Department Department Painting 15,000 Support Department 12,500 Assembly Packaging Floor space (m2) Book value of plant($) 22,500 20,000 140,000 180,000 70,000 10,000 Electricity Kwhs 80 100 15 5 Machine hours 110,000 150,000 140,000 Number of store 180 120 100 requisitions (materials) Direct labour hrs 80,000 120,000 100,000 The support department's overhead should be apportioned based on direct labour hours. Required: a) Prepare the overhead analysis statement showing clearly the…Automatic Irrigation, Inc. is preparing its manufacturing overhead budget for the 2022 year. Relevant data consist of the following: Qtr. 4 Qtr. 1 Qtr. 2 Qtr. 3 Control Units to be produced (by quarters): 6,000 10,000 12,000 9,000 Direct labor time: 1 hour per unit Variable overhead costs per direct labor hour: Indirect Materials $0.90; Indirect Labor $1.40; and Maintenance $0.50. Fixed overhead costs per quarter: Supervisory salaries $27,600; depreciation $4,000; and maintenance $1,900. Required Prepare the manufacturing overhead budget for the 2022 year showing quarterly data.The following data have been extracted from the budgets and standard costs of FAA Limited a company which manufactures and sells a single product, for the 1st quarter of 2021.GH¢ per unitSelling price 60Direct material 15Direct labour 10Variable production overhead 5Fixed production overhead costs are budgeted at GH¢ 700,000 per annum. Normal productionlevels are thought to be 350,000 units per annum.Selling and distribution expenses are:Fixed GH¢ 20,000 per monthVariable 5% of the sales valueAdministration costs are GH¢ 200,000 per annum.The following trends of sales and production are expected during the first quarter of 2021UnitsProduction 80,000Sales 70,000There were no opening inventories.REQUIRED:a) Prepare the absorption costing and marginal costing income statements for 1st quarter, 2021b) Reconcile the profits in (a) above3c) State two (2) differences between absorption costing and marginal costing approachesd) What is the meaning of slack under limiting factor analysis?
- Point, Inc. produces men's shirts. The following budgeted and actual amounts are for 2019: Cost Budget at 3,000 units Actual Amounts at 2,800 units $75,000 87,000 Direct materials Direct labor Fixed overhead Instructions Prepare a performance report for Point, Inc. for the year. Direct materials Direct labor Fixed overhead Total costs F3 + F4 Ⓡ 3 # 4 $ F5 36,000 5 % F6 Budget F7 C Manufacturing Performance Budget Report For the Year Ended December 31, 2019 6 A POINT, INC. Search F8 $75,000 7 & 78,000 34,500 0: Actual F9 60 8 * Differences F/U LG F10 9 ( F11 - 0) F12 + Prt Sc ScrLk Ins = +Arden Ltd tentative budget for product TYL for 2019 is shown below: Sales (2500 units at £40 a unit Manufacturing cost of goods sold 100,000 Direct labour 15,000 Direct materials 14,000 Variable factors overhead 10,000 Fixed factors overheard 5000 44,000 Gross profit 56,000 Selling express Variable 6000 Fixed 10,000 Administrative expenses Variable 5,000 Fixed 10,000 31,000 Operating income 25,0000 Required: (a). How many units of product TYL would have to be sold to break-even.] (b). What would be operating income if projected sales increased by 30%.Waterway Industries has the following budgeted costs for the next year: Time Charges Material Charges Shop employees’ wages and benefits $120000 $ - Parts manager’s salary and benefits - 50000 Office employee’s salary and benefits 45000 15000 Other overhead 15000 40000 Invoice cost of parts and materials - 454000 Total budgeted costs $180000 $559000 Next year’s material loading charge, assuming a 30% markup on material cost is 48.78%. 53.00%. 30.00%. 18.78%. do not give solution in image
- Sheridan Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2027. Estimated unit sales Unit selling price Direct labor hours per unit Direct labor cost per hour Beginning Materials Inventory Cost per Pound Desired Ending Inventory Direct Labor Cost per Hour Direct Labor Hours per Unit January 10,560 $60.00 $ 2.00 $ $6.00 id Media Show Transcribed Text February March April 12,320 11,440 9,680 $57.50 $57.50 $57.50 $57.50 Sheridan has a labor contract that calls for a wage increase to $7.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Jan 2.00 J Sheridan expects to begin the year with 15,488 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales. 1.50 $6.00 $6.00 $7.00 $7.00 Direct Materials per Unit Direct…Rose Company uses a flexible budget for manufacturing overhead based on direct labor hours. The following information are from the yearly static overhead budget for the Production Department for 2023. It is based on 300,000 direct labor hours. Variable Costs Fixed Costs Indirect labor ($1.2 per DL hour) $30,000 Supervision $ 5,000 Supplies and lubricants ($0.5 per DL hour) 12,500 Depreciation 2,000 Maintenance ($0,7 per DL hour) 17,500 Property taxes 1,500 Utilities ($0,4 per DL hour) 10,000 Insurance 1,000 During July, 24,500 direct labor hours were worked. The company incurred the following variable costs in July: indirect labor $30,200, supplies and lubricants $11,600, maintenance $17,500, and utilities $9,200. Actual fixed overhead costs were the same as monthly budgeted fixed costs. a.) Prepare a flexible monthly budget for the Production Department for the relevant range between 24,000 and 26,000 DL hours with increments of 1000 DL hours. b.) Prepare a flexible budget…Company has prepared the following summary from its functional budgets for the year ended 30th September 2020. Particulars Amount (in Rs.) Amount (in Rs.) Sales(1,00,000 units) 15,00,000 Opening Inventory( Zero Units) Nil Production Costs (1,15,000 units) Direct materials 4,60,000 Direct labour 5,75,000 Variable overhead 1,15,000 Fixed overhead 2,30,000 1,380,000 Closing inventory (15,000 units) (1,80,000) Cost of Sales 1,200,000 Gross Profit 3,00,000 Other overhead fixed costs (2,00,000) Net Profit 1,00,000 The directors of the company have now met to review the above statement. They have decided to revise the budget as follows: Due to competition, reduce the selling price by Rs.5 per unit and despite the reduction in selling price the demand for the product will reduce to 90,000 units. Increase some of the unit production costs: direct…
- Gary Ltd. manufactures a product for which the budgeted capacity is 392,000 units per month. The following data is available for August 2019: Details Units Sales 320,000 Opening stock 60,000 Closing stock 160,000 Production 420,000 Cost Data Details $ Direct materials 55 Direct labour 22 Variable Production Overheads 41 Fixed administrative overheads were estimated at $ 600,000 while fixed selling overheads were estimated at $840,000. During the periods, the selling price per unit was $180 and Total Fixed Production Overheads were $5,880,000. Required: (a) Show the profit situation using Marginal costing principles (b) Show the profit situation using Absorption costing principles@ Gusteau's manufactures high-quality boxes of flavored seltzer which it sells for $14 per box. Below is some information related to Gusteau's capacity and budgeted fixed manufacturing costs for 2019: Budgeted Fixed Days of Hours of Denominator-Level W Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity $10,187,250 $10,194,980 # 3 E $ Help Center? Period 4 Manufacturing Overhead per $1,750,000 $1,750,000 $1,750,000 $1,750,000 R Production Production % 5 per Period T 362 310 310 310 Production during 2019 was 990,000 boxes of flavored seltzer, with 15,000 remaining in ending inventory at 12/31/19. Assume beginning inventory is zero. 22 Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $1,750,000, the same as budgeted. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. (Note: Round interim…В. Nano Sdn Bhd (NSB) manufactures two (2) products called SA1 and RA2. Below are the budgeted sales for the month of January, 2021. SAI 3,200 50 RA2 2,400 Budgeted sales (unit) Price per unit (RM) Opening inventory (unit) Desired closing inventory (unit) 75 1,200 1,320 1,800 1,980 There are two (2) types of material used in the production which are MATA and MAT B. The following is the information related to material for the month of January, 2021: MAT B 1,950 MAT A Opening inventory (unit) Desired closing inventory (unit) Price per kg (RM) Material used per unit: 2,000 10% of the production requirements for the month 4.00 5.00 5 kg 3 kg 3 kg 2 kg SAI RA2 REQUIRED: Prepare the following budgets for the month of January 2021: (a) Production budget (b) Material required for production in quantities (c) Material purchase budget