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Heat Fast Inc. (HFI) is a manufacturer of heating elements for toaster ovens. To improve control over operations, the president wants to Install a flexible budgeting system, rather than the single master budget being used at present. The following data are available for expected costs for production. The relevant range of production levels for fixed overhead costs is 80,000 to 180,000 units: Variable costs: Manufacturing Administrative Selling Fixed costs: Manufacturing Administrative Variable costs Manufacturing Administrative Selling Required: Prepare a flexible budget for each of the three sales levels: 116,000, 126,000 and 136,000 units. Each toaster oven is expected to sell for $22.40. Total variable costs Fixed costs Manufacturing Administrative $9.60/unit $5.25/unit $4.25/unit Total fixed costs Total costs Income from operations $ 194,900 $ 112,500 Heat Fast Inc. Flexible Budget Cost Formula (per toaster) $ 0.00 $ $ $ 110,000 Activity (toasters) 120,000 0 $ 0 $ 0$ 0 $ 0 $ 0 $ 136,000 0 0 4 21

Heat Fast Inc. (HFI) is a manufacturer of heating elements for toaster ovens. To improve control over operations, the president wants to Install a flexible budgeting system, rather than the single master budget being used at present. The following data are available for expected costs for production. The relevant range of production levels for fixed overhead costs is 80,000 to 180,000 units: Variable costs: Manufacturing Administrative Selling Fixed costs: Manufacturing Administrative Variable costs Manufacturing Administrative Selling Required: Prepare a flexible budget for each of the three sales levels: 116,000, 126,000 and 136,000 units. Each toaster oven is expected to sell for $22.40. Total variable costs Fixed costs Manufacturing Administrative $9.60/unit $5.25/unit $4.25/unit Total fixed costs Total costs Income from operations $ 194,900 $ 112,500 Heat Fast Inc. Flexible Budget Cost Formula (per toaster) $ 0.00 $ $ $ 110,000 Activity (toasters) 120,000 0 $ 0 $ 0$ 0 $ 0 $ 0 $ 136,000 0 0 4 21

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Heat Fast Inc. (HFI) is a manufacturer of heating elements for toaster ovens. To improve control over operations, the president wants to Install a flexible budgeting system, rather than the single master budget being used at present. The following data are available for expected costs for production. The relevant range of production levels for fixed overhead costs is 80,000 to 180,000 units: Variable costs: Manufacturing Administrative Selling Fixed costs: Manufacturing Administrative Variable costs: Manufacturing Administrative Selling Required: Prepare a flexible budget for each of the three sales levels: 116,000, 126,000 and 136,000 units. Each toaster oven is expected to sell for $22.40. Total variable costs Fixed costs Manufacturing Administrative $9.60/unit $5.25/unit $4.25/unit Total fixed costs Total costs Income from operations $ 194,900 $ 112,500 Heat Fast Inc. Flexible Budget Cost Formula (per toaster) $ 0.00 $ $ $ 116,000 Activity (toasters) 126,000 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 136,000 0. 0 0 چار 4
Transcribed Image Text:Heat Fast Inc. (HFI) is a manufacturer of heating elements for toaster ovens. To improve control over operations, the president wants to Install a flexible budgeting system, rather than the single master budget being used at present. The following data are available for expected costs for production. The relevant range of production levels for fixed overhead costs is 80,000 to 180,000 units: Variable costs: Manufacturing Administrative Selling Fixed costs: Manufacturing Administrative Variable costs: Manufacturing Administrative Selling Required: Prepare a flexible budget for each of the three sales levels: 116,000, 126,000 and 136,000 units. Each toaster oven is expected to sell for $22.40. Total variable costs Fixed costs Manufacturing Administrative $9.60/unit $5.25/unit $4.25/unit Total fixed costs Total costs Income from operations $ 194,900 $ 112,500 Heat Fast Inc. Flexible Budget Cost Formula (per toaster) $ 0.00 $ $ $ 116,000 Activity (toasters) 126,000 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 136,000 0. 0 0 چار 4
Heat Fast Inc. (HFI) is a manu install a flexible budgeting sy expected costs for productio Variable costs: Manufacturing Administrative Selling Fixed costs: Manufacturing Administrative Variable costs: Manufacturing Administrative Selling Total variable costs Required: Prepare a flexible budget for each of the three sales levels: 116,000, 126,000 and 136,000 units. Each toaster oven is expected to sell for $22.40 Fixed costs Manufacturing Administrative of heating elements for toaster ovens. To improve control over operations, the president wants to ather than the single master budget being used at present. The following data are available for relevant range of production levels for fixed overhead costs is 80,000 to 180.000 units Total fixed costs Total costs Income from operations init unit unit $ 194,900 $ 112,500 Heat Fast Inc. Flexible Budget Cost Formula (per toaster) $ 0.00 $ $ $ 116,000 Activity (toasters) 0 $ 0 $ 0 $ 126,000 0 $ 0 $ 0 $ 136,000 0 0 0
Transcribed Image Text:Heat Fast Inc. (HFI) is a manu install a flexible budgeting sy expected costs for productio Variable costs: Manufacturing Administrative Selling Fixed costs: Manufacturing Administrative Variable costs: Manufacturing Administrative Selling Total variable costs Required: Prepare a flexible budget for each of the three sales levels: 116,000, 126,000 and 136,000 units. Each toaster oven is expected to sell for $22.40 Fixed costs Manufacturing Administrative of heating elements for toaster ovens. To improve control over operations, the president wants to ather than the single master budget being used at present. The following data are available for relevant range of production levels for fixed overhead costs is 80,000 to 180.000 units Total fixed costs Total costs Income from operations init unit unit $ 194,900 $ 112,500 Heat Fast Inc. Flexible Budget Cost Formula (per toaster) $ 0.00 $ $ $ 116,000 Activity (toasters) 0 $ 0 $ 0 $ 126,000 0 $ 0 $ 0 $ 136,000 0 0 0
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