company's budget for the year just completed included fixed expenses for office s e and equipment of $59,000, and utilities and other operating expenses of $11,00 nses for supplies and other variable overhead costs of $1,280,000. The company D0 for each letter of credit approved and issued. The company approves, on avera g the year, the company received 600 requests and approved 70% of them. The t tandard amount applied; the total fixed expenses were 5.0% lower than the amour dition to these expenses, the company paid a $270,000 insurance premium for th ium is 1.0% of the amount of credit issued in U.S. dollars. The actual amount of cre ested due to fluctuations in exchange rates and variations in the amount shipped gth of the dollar during the year decreased the insurance premium by 10.0%.

company's budget for the year just completed included fixed expenses for office s e and equipment of $59,000, and utilities and other operating expenses of $11,00 nses for supplies and other variable overhead costs of $1,280,000. The company D0 for each letter of credit approved and issued. The company approves, on avera g the year, the company received 600 requests and approved 70% of them. The t tandard amount applied; the total fixed expenses were 5.0% lower than the amour dition to these expenses, the company paid a $270,000 insurance premium for th ium is 1.0% of the amount of credit issued in U.S. dollars. The actual amount of cre ested due to fluctuations in exchange rates and variations in the amount shipped gth of the dollar during the year decreased the insurance premium by 10.0%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Accepting Business at a Special Price Power Serve Company expects to operate at 88% of productive capacity during May. The total manufacturing costs for May for the production of 34,320 batteries are budgeted as follows: Direct materials $515,800 Direct labor 189,600 Variable factory overhead 53,072 Fixed factory overhead 106,000 Total manufacturing costs $864,472 The company has an opportunity to submit a bid for 2,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses. What is the unit cost below which Power Serve Company should not go in bidding on the government contract? Round your answer to two decimal places.$fill in the blank 1 per unit
Osprey Co. prepared a master budget for 2021 reflecting indirect material costs of $170,440 based on annual production of 153,215 widgets (the annual production is spread out equally over the twelve months). During July 2021, Osprey Co. produced 10,673 widgets incurring indirect material costs of $15,600. What was the static budget amount (in dollars) for indirect materials for July 2021?
The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials $ 350,000 Indirect labor 1,675,000 Depreciation—Building 303,000 Depreciation—Furniture 35,000 Utilities 310,000 Insurance 39,000 Property taxes 53,000 Other expenses 145,000 Total $ 2,910,000 The firm estimates total direct labor cost for the year to be $1,818,750. The firm uses direct labor cost as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Gargus account Direct labor $ 3,000 Feller account Direct labor $ 9,000 Required: 1. Compute the firm’s predetermined overhead rate. 2. Compute the amount of overhead to be charged to the Gargus and Feller accounts using the predetermined overhead rate calculated in requirement 1. 3. Compute total job cost for the Gargus account and the Feller account.
Accepting Business at a Special Price Forever Ready Company expects to operate at 90% of productive capacity during July. The total manufacturing costs for July for the production of 34,200 batteries are budgeted as follows: Direct materials $272,100 Direct labor 100,000 Variable factory overhead 28,040 Fixed factory overhead 56,000 Total manufacturing costs $456,140 The company has an opportunity to submit a bid for 2,000 batteries to be delivered by July 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during July or increase the selling or administrative expenses. What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit
Tempo Company's fixed budget (based on sales of 16,000 units) follows. Sales (16,000 units Costs Direct materials Direct labor Indirect materials Supervisor salary Fixed Budget $216 per unit) 3,456,000 368,000 704,000 432,000 168,000 Sales commissions 112,000 Shipping 240,000 Administrative salaries 218,000 Depreciation-Office equipment 188,000 Insurance 158,000 Office rent 168,000 700,000 Income 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 14,000 units and 18,000 units. TEMPO COMPANY Flexible Budget Variable Amount per Unit Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of 14,000 of 18,000 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Fixed costs 0.00 이 0 $ 0 S 0 S 0
Accepting Business at a Special Price Power Pack Company expects to operate at 80% of productive capacity during July. The total manufacturing costs for July for the production of 45,000 batteries are budgeted as follows: Direct materials $375,000 Direct labor 160,750 Variable factory overhead 71,750 Fixed factory overhead 261,250 Total manufacturing costs $868,750 The company has an opportunity to submit a bid for 4,500 batteries to be delivered by July 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during July or increase the selling or administrative expenses. What is the unit cost below which Power Pack Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit
Clarks Company's master budget includes $360,000 for equipment depreciation. The master budget was prepared for an annual volume of 120,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September Clark performed 9,000 chargeable hours and recorded $28,000 of depreciation. Determine the flexible budget amount for equipment depreciation in September?
Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 1,500,000 Cost of sales: Direct Material $ 250,000 Direct labor 150,000 Variable Overhead 75,000 Fixed Overhead 100,000 575,000 Gross Profit $ 925,000 Selling and G&A Variable 200,000 Fixed 250,000 450,000 Operating Income $ 475,000 The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:
Vishnu
RTI Company's master budget calls for production and sale of 18,900 units for $98,280, variable costs of $43,470, and fixed costs of $18,400. During the most recent period, the company incurred $32,900 of variable costs to produce and sell 18,400 units for $85,900. During this same period, the company earned $25,900 of operating income. Required: 1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) a. Flexible budget operating income. b. Flexible budget variance, in terms of contribution margin. Was this variance favorable or unfavorable? c. Flexible budget variance, in terms of operating income. Was this variance favorable or unfavorable? d. Sales volume variance, in terms of contribution margin. Was this variance favorable or unfavorable? e. Sales volume variance, in terms of operating income. Was this variance favorable or unfavorable? a. Flexible budget operating income b. Flexible budget variance…
National company has two support departments A&B and two operating departments X&Y. for the first quarter 2021, Budgeted overhead costs before any interdepartmental costs allocations were: A $800,000, B $1,500,000, X $5,000,000 and Y $11,000,000. Support work supplied by A to B 20%, to X 50% and to Y 30%. Support work supplied by B to A 25%, to X 35% and to Y 40%. Using direct method, the total cost of :department A before allocation is .a .$1,175,000 .b .$800,000 .C .$1,500,000 .d .$0
Pinnacle Corp. budgeted $226,430 of overhead cost for the current year. Actual overhead costs for the year were $213,870. Pinnacle's plantwide allocation base, machine hours, was budgeted at 51,960 hours. Actual machine hours were 53,550. A total of 102,150 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: Oa. $4.12 per machine hour Ob. $4.36 per machine hour Oc. $2.22 per machine hour Od. $2.09 per machine hour