Arden Ltd tentative budget for product TYL for 2019 is shown below:Sales (2500 units at £40 a unitManufacturing cost of goods sold100,000Direct labour15,000Direct materials14,000Variable factors overhead10,000Fixed factors overheard500044,000Gross profit56,000Selling expressVariable6000Fixed10,000Administrative expensesVariable5,000Fixed10,00031,000Operating income25,0000Required:(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%.

(a) Break-even point (units): \[ \text{Break-even point (units)} = \frac{\text{Fixed…

Answered: Arden Ltd tentative budget for product…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(
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You are provided the following production information for the month of October 2020 Material A Material B Material C Opening WIP Cost RO R5,622 R4 235 Current Months' Cost R57,885 R66,368 R36,329 Equivalent Units 6,264 units 9.863 units 7.959 units If a FIFO system is used, what is the cost per equivalent unit for Material C?
Marigold provided the following information from its accounting records for 2022: Expected production Actual production Budgeted overhead Actual overhead 33200 labour hours 31200 labour hours $1660000 $1610000 How much is the overhead application rate if Marigold bases the rate on direct labour hours? O $51.60 per direct labour hour O $48.49 per direct labour hour O $50.00 per direct labour hour O $53.21 per direct labour hour
Cost Accounting The following budget is prepared by the Production manager for the last quarter of 2021:Units Total CostOctober 7500 530000November 6000 440000December 5000 380000 1. What is the variable cost per unit? ______2. How much is the fixed cost? ______3. What is the estimated budget for 6500 units?______
ework Required O Saved Help Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX CОМPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3,150,000 Cost of goods sold Direct materials $ 915,000 240,000 Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense 45,000 315,000 210,000 210,000 1,935,000 1,215,000 75,000 90,000 235,000 400,000 125,000 230,000 85,000 Salaries Entertainment expense 440,000 nces Income from operations $375,000 Problem 23-1A Part 1&2 Prev 1 3 of 8 Next > here to search PriSc Dele Ins C F5 F9 F10 F11 F12 F6 F7 F8 F1 F3 F4 F2 23 3 4. 6. 7 8. 9. T Y 11 D G H. K L A Z. C V M + II V B L.
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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 cost data for Evencoat Paint for the year 2019 is as follows: Month Gallons ofPaintProduced EquipmentMaintenanceExpenses January 110,000 $70,700 February 68,000 66,800 March 71,000 67,000 April 77,000 68,100 May 95,000 69,200 June 101,000 70,300 July 125,000 70,400 August 95,000 68,900 September 95,000 69,500 October 89,000 68,600 November 128,000 72,800 December 122,000 71,450 A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $fill in the blank 1 Variable cost $fill in the blank 2 B. Predict the maintenance costs if 90,000 gallons of paint are produced. Maintenance cost $fill in the blank 3 C. Predict the maintenance costs if 81,000 gallons of paint are produced. Maintenance cost $fill in the…

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