i need the answer quickly Required informationPR 9-42 (Algo) Preparation of Master Budget (LO 9-3, 9-4, 9-5)[The following information applies to the questions displayed below.]FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables.The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.Direct material required per 100 boxes:Paperboard ($0.28 per pound)Corrugating medium (S0.14 per pound)Direct labor required per 100 boxes ($16.00 per hour)Type of Box45 pounds85 pounds35 pounds0.35 hour45 pounds0.70 hourThe following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based ona production volume of 490,000 units for each type of box. Production overhead is applied on the basis of direct-laborhours.Indirect materialIndirect laborUtilitiesProperty taxesInsuranceDepreciationTotal$ 14,85076,69052,50035,00028,00060,500$267,540The following selling and administrative expenses are anticipated for the next year.Salaries and fringe benefits of sales personnelAdvertisingManagement salaries and fringe benefitsClerical wages and fringe benefitsMiscellaneous administrative expensesTotalThe sales forecast for the next year is as follows:Box type CBox type P$142,50032,500155,00049,0008,000$387,000Sales PriceSales Volume495,000 boxes495,000 boxes$135.00 per hundred boxes195.00 per hundred boxesThe following inventory information is available for the next year. The unit production costs for each product are expectedto be the same this year and next year.Expected Inventory Desired Ending InventoryFinished goods:Box type CBox type PRaw material:PaperboardCorrugating mediumJanuary 1December 3119,500 boxes14,500 boxes29,500 boxes24,500 boxes18,000 pounds8,000 pounds9,000 pounds14,000 poundsPrepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.PR 9-42 (Algo) Part 3: Prepare the direct-material budget...3-a. Prepare the direct-material budget for paperboard.3-b. Prepare the direct-material budget for corrugating medium.Complete this question by entering your answers in the tabs below.Req ЗАReq 38Prepare the direct-material budget for paperboard.Production requirement (number of boxes)Raw material required per box (pounds)Raw material required for production (pounds)Total raw-material needsPaperboardBox CBox PTotalRaw material to be purchasedPrice (per pound)Cost of purchases (paperboard)Req 3AReq 3B >

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Description: i need the answer quickly Required informationPR 9-42 (Algo) Preparation of Master Budget (LO 9-3, 9-4, 9-5)[The following information applies to the questions displayed below.]FreshPak Corporation manufactures two types of cardboard boxes used in sh

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FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Direct material required per 100 boxes: Paperboard ($0.28 per pound) Corrugating medium ($0.14 per pound) Direct labor required per 100 boxes ($16.00 per hour) Type of Box C 45 pounds 35 pounds 8.35 hour 85 pounds 45 pounds 0.70 hour

FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Direct material required per 100 boxes: Paperboard ($0.28 per pound) Corrugating medium ($0.14 per pound) Direct labor required per 100 boxes ($16.00 per hour) Type of Box C 45 pounds 35 pounds 8.35 hour 85 pounds 45 pounds 0.70 hour

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 68P: Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy...

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Required information PR 9-42 (Algo) Preparation of Master Budget (LO 9-3, 9-4, 9-5) [The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Direct material required per 100 boxes: Paperboard ($0.28 per pound) Corrugating medium ($0.14 per pound) Direct labor required per 100 boxes ($16.00 per hour) Type of Box C P 45 pounds 85 pounds 35 pounds 0.35 hour 45 pounds 0.70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 490,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material Indirect labor Utilities Property taxes Insurance. Depreciation Total $ 14,850 76,690 52,500 35,000 28,000 60,500…
EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production. Direct materials per bag 1.0 yard cotton at $4 per yard 0.2 yards canvas finish at $12 per yard Direct labor per bag 0.5 hour at $18 per hour Overhead per bag Indirect labor $ 0.60 Indirect materials 0.20 Power 0.40 Equipment costs 1.30 Building occupancy 0.90 Total overhead per unit $ 3.40 You learn that equipment costs and building occupancy are fixed and are based on a normal production of 600,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 750,000 units per year. Labor costs per hour are not expected to change during the year. However, the cotton supplier has informed EcoSacks that it will impose a 20 percent price increase at the start of the coming budget period. No…
Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: (QUESTION IN PICTURES)
Alum manufactures aluminum strips for commercial building construction. Alum makes three types of strips 1/8 inch, 1/4 inch and 1/2 inch. Actual and Budget operating data by product for the most recent reporting period are as follows: ACTUAL BUDGET 1/8 1/4 1/2 1/8 1/4 1/2 Sales-# units 84 126 210 200 100 200 Price / unit $25 $32 $45 $20 $30 $40 Var. Cost / unit $16 $18 $22 $15 $17 $20 a. Calculate the sales-mix variance for each product and in total. b. Calculate the sales-quantity variance for each product and in total. c. Provide an explanation for what is driving the sales-mix variance. Discuss an issue, not the numerical variance amounts
Direct materials: Budgeted production volume There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows: 12" Pizza 0.60 lb. per unit 0.30 Total 0.50 Estimated inventory, September 1 Desired inventory, September 30 Price per pound 12" Pizza Dough Tomato Cheese In addition, Zippy's has determined the following information about each material: Tomato Direct Materials: Units required for production: 12" pizza 16" pizza Units 16,300 Total units to be purchased Unit price Total direct materials to be purchased 16" Pizza 16" Pizza 1.00 lb. per unit 0.45 0.80 20,600 Dough 620 lbs. 650 lbs. $1.50 220 lbs. 210 lbs. Prepare September's direct materials purchases budget for Your Pie Inc. YOUR PIE INC. Direct Materials Purchases Budget For the Month Ending September 30 $2.60 Cheese 270 lbs. 300 lbs. $3.30 Dough Tomato Cheese Total
Perez Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Perez planned to make and sell 25,000 copies of the book. Number of units Variable manufacturing costs Required: a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 24,000 and 26,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 26,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Fixed costs $36.50 8.60 4.40 Master Budget 25,000 7.10 $ 131,000 50,000 Flexible Budgets 24,000 < Prev 4 of 4 26,000 Volume Variances…
Adams Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Adams planned to make and sell 31,000 copies of the book. Number of units Required: a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements. assuming production volumes of 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" If there is no effect (l.e., zero varlance). Variable manufacturing costs Fixed costs $36.80 8.30 3.50 5.70 7.10 Master Budget 31,000 $ 126,000 52,000 Flexible Budgets 30,000 32,000 Volume Variances
Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. BasicDiet requires 0.20 direct labor hour per bag, and SpecialDiet requires 0.30 direct labor hour per bag. Ladan has developed the following fixed and variable costs for each of the four overhead items: Problem 9-68 Flexible Budget for Various Production Levels Refer to the information for Healthy Pet Company on the previous page. Required: 1. Calculate the direct labor hours required for production that is 10% higher than expected. Calculate the direct labor hours required for production that is 20% lower than expected. 2. Prepare an overhead budget that reflects production that is 10% higher than expected and for production that is 20% lower than expected. (Hint: Use total direct labor hours calculated in Requirement 1.)
Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. 2. Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was 75,200 (for 16,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. BasicDiet requires 0.20 direct labor hour per bag, and SpecialDiet requires 0.30 direct labor hour per bag. Ladan has developed the following fixed and variable costs for each of the four overhead items: Problem 9-69 Performance Report Based on Actual Production Refer to the information for Healthy Pet Company on the previous page. Assume that Healthy Pet actually produced 100,000 bags of BasicDiet and 90,000 bags of SpecialDiet. The actual overhead costs incurred were as follows: Required: 1. Calculate the number of direct labor hours budgeted for actual production of the two products. 2. Prepare a performance report for the period based on actual production. 3. CONCEPTUAL CONNECTION Based on the report, would you judge any of the variances to be significant? Can you think of some possible reasons for the variances?
Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. BasicDiet requires 0.20 direct labor hour per bag, and SpecialDiet requires 0.30 direct labor hour per bag. Ladan has developed the following fixed and variable costs for each of the four overhead items: Problem 9-67 Overhead Budget for a Particular Level of Activity Refer to the information for Healthy Pet Company above. Required: 1. Calculate the total direct labor hours required for the production of 80,000 bags of BasicDiet and 80,000 bags of SpecialDiet. 2. Prepare an overhead budget for the expected activity level (calculated in Requirement 1) for the coming year.
Soar, Inc. manufactures a product that has the direct materials standard cost presented below. Budgeted and actual information for the current month for the manufacture of the finished product and the purchase and use of the direct materials is also presented. Standard cost for direct materials: 1.60 lb. @ $2.50 per Ib. Budget Actual Finished goods (in units) Direct materials usage (in pounds) Direct materials purchases (in pounds) 30,000 32,000 51,000 48,000 50,000 Total cost of direct materials purchases ? $120,000 Soar's direct materials price variance for the current month is A. $500 favorable. B. $500 unfavorable. C. $5,000 favorable. D. $8,000 favorable.