accounting statement reconciling the budgeted costs
Q: Explain the term budgeted costs.
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: budgeted income statement
A: The budgeted income statement represents the estimated profits from the operations for the…
Q: Define the term budgeting cycle.
A: Budget Cycle: The budget cycle refers to the whole time period starting from the creation of the…
Q: reate an AIS diagram for Budget Profit Planning Process using the 6-level plannin
A: Budgeted Planning Process While preparing the budgetary planning process which needs the details of…
Q: Explain the term of operating budget.
A: Introduction Budget is monetary plan for future. It deals with where the company wants to reach in…
Q: which type of costing system do we typically use for managerial accounting purposes. normal budget…
A: The method of creating, executing, and budgetary control is known as budgeting. Budget preparation…
Q: A budgeted income statement is prepared from which budgets
A: The budget is prepared to estimate the requirements for the future period.
Q: Can you interpret the effect on revenue , expense and profits if the sale or production differ from…
A: Master Budget shows the estimated results that a company expects to obtain from its operations.
Q: _________________is an operating budget
A: The Answer :
Q: Prepare Sales Budget,Production Budget,Material usageand purchase budget and Direct Labour Budget.
A: Budgets are prepared in order to forecast the sales and the cost to produce the products.
Q: Define the term operating budget.
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: Explain the relationship between performance reports and flexible budgeting.
A:
Q: Which budget is prepared first? Which budget is last? Multiple Choice Production Budget and Income…
A: Budget is prepared by the management on the basis of past experience. On the basis of the budget, It…
Q: Describe the budgeting and planning process.
A: Budgeting process: The process of streamlining the future expenditure process by predicting or…
Q: The "Budget" column of a flexible budget report reflects: budgeted costs at the budgeted level of…
A: Solution Concept Flexible budget Flexible budget is a budget which is prepared by changing the…
Q: The refers to a measure of acceptable performance established by management a guide in making…
A: The answer is option b standards
Q: Describe budgeting process.
A: Budgeting is a process to prepare the financial statement by the manager to estimate the…
Q: Determine the budget for the department assuming that it uses flexible budgeting.
A: Direct labor cost per hour of production = Budgeted direct labor cost/ Budgeted production hours =…
Q: Understand commonerrors made in preparingp erformance reports based on budgets and actual results.
A: Budget: A budget is a statement of estimated revenues and expenditures for a specific period of…
Q: Explain budgetary reporting requirements.
A:
Q: Define master budget.
A:
Q: Construct a material usage and purchases budget of the Bara Enterprise.
A: A material usage and purchases budget is a statement of estimation of a material required to produce…
Q: Define operating budget
A: An operating budget comprises all things considered and costs over some stretch of time (regularly a…
Q: Q.Master budget. Which of the following statements is correct regarding the components of the master…
A: The correct answer is Option (b).
Q: uses and advantage of budget
A: Budget is referred to as an estimation of the expenses as well as revenues of the individual or the…
Q: what are total budgeted costs
A: Budgets are the estimates or forecasts to be made for future period. Budgeted costs means forecasted…
Q: _________budget evaluates the results of operations at the actual level of activity
A: The Answer
Q: e selling expense budget
A: Selling expense budget is the estimate of selling expenses to be incurred in a future period of…
Q: Create budget assumption
A: Budgeting: Budgeting can be defined as the process of developing a financial plan that company…
Q: Define the term sales budget.
A: A sales budget provides an estimate of the volume of goods and services that a company proposes to…
Q: What type of procedure is a Budget vs. Actual comparison?
A: Budget is a statement of cost and revenue which are estimated at the start of the period Actual is…
Q: Direct Labor Cost Budgets
A: Budget: budget is an estimate prepared by the company to know its future goals and actions required…
Q: Which of the following is a basic element of effective budgetary control?a. cost behavior patternsb.…
A: Budgeting is a process that involves estimation of total costs and revenues of a firm over a…
Q: Sales Budget
A: Sales budget is an estimate of sales for a future period. Sales revenue is calculated by…
Q: Outline the steps in preparing an operating budget.
A: Operating Budget: The operating budget is that budget which is prepared to plan all the operating…
Q: A detailed report to management comparing budgeted data with actual data for a specific time period…
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: A budget that adjusts to the changes in volume of production or output is called production budget.
A: FALSE.
Q: The accounting relates to assortment, classification and measurement of cost for analyzing methods/…
A: There are several types of accounting made for different users.
Q: Prepare a Pro Forma Statement of Comprehensive Income Statement Budget
A: Statement of Comprehensive Income refers to the income statement which includes the details of the…
Q: prepare a professional labor cost budget f
A:
Q: Analyze expense planning using activity-based budgeting.
A: Activity-based budgeting (ABB) refers to the system of creating a budget which documents/records,…
Q: Explained how the use of an activity-based costing system could change the results of the budget if…
A: Activity based costing is the type of costing in which the costs are estimated according to the…
Q: Define the term production budget.
A: The creation financial plan figures the quantity of units of items that should be fabricated, and is…
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- A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000Direct labor hours are estimated as 2,000 in Quarter 1; 2,100 in Quarter 2; 1,900 in Quarter 3; and 2,300 in Quarter 4. Prepare a manufacturing overhead budget using the information provided.Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
- When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-63 Flexible Budget for Various Levels of Activity Refer to the information for Palladium Inc. above. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. 2. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.
- Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was 260,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be 25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 130 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold for June. 4. Calculate the price charged for Job 39. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? What would happen to the balance of Cost of Goods Sold?Calculating factory overhead The standard capacity of a factory is 8,000 units per month. Cost and production data follow: Calculate the amount of factory overhead allowed for the actual volume of production each month and the variance between budgeted and actual overhead for each month.Production information shows these costs and units for the smoothing department in August. What is the value of the inventory transferred out to finished goods and the value of the WIP inventory at the end of the month, assuming conversion costs are 30% complete?
- Calculating factory overhead The normal capacity of a factory is 10,000 units per month. Cost and production data follow: Calculate the amount of factory overhead allowed for the actual volume of production each month and the variance between budgeted and actual overhead for each month.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:Factory overhead cost variance report Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,400 hours. During May, the department operated at 8,860 hours, and the factory overhead costs incurred were indirect factory wages, 32,400; power and light, 21,000; indirect materials, 18,250; supervisory salaries, 20,000; depreciation of plant and equipment, 36,200; and insurance and property taxes, 15,200. Instructions Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours.