Haresh Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesFixed CostCost perper Month Car Washed$ 0.70$ 1,300$ 0.07$ 0.15$ 5,000$ 0.30$ 8,100$ 2,100$ 1,400$ 0.05For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,100 cars inAugust and to collect an average of $6.00 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementFor the Month Ended August 31Actual cars washedRevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating incomeRequired:8,200$ 50,7006,1701,8371,4557,7908,1002,3001,70529,357$ 21,343Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances forAugust. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.)Lavage RapideFlexible Budget Performance ReportFor the Month Ended August 31Cars washedRevenueActualResults8,200$50,700Expenses:Cleaning supplies6,170Electricity1,837Maintenance1,455Wages and salaries7,790Depreciation8,100Rent2,300Administrative expenses1,705Total expense29,357Net operating income$21,343FlexiblePlanningBudgetBudget

A flexible budget is a budgeting tool that adjusts to changes in activity levels or other variables…

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed. Cleaning supplies Electricity $ 0.70 $ 1,300 $ 0.07 Maintenance $ 0.15 Wages and salaries $ 5,000 $ 0.30

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed. Cleaning supplies Electricity $ 0.70 $ 1,300 $ 0.07 Maintenance $ 0.15 Wages and salaries $ 5,000 $ 0.30

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
QUESTION 2 Seroja Sdn. Bhd. manufactures customized equipment for local market. The budgeted data for the month of February 2019 were as follows: Machining Department Finishing Department Manufacturing overhead RM40,000 RM65,000 10,000 hours 5.700 hours Direct labour hours 2.000 hours Machine hours 4.000 hours During the month, an order was received from Mr. Eric to manufacture an equipment for his personnel use. The job is known as Job E and the data pertaining to the job were as follows: Machining Department Finishing Department RM2,800 Direct material RM1,200 50 hours Direct labour hours Machine hours Wage rate per hour 500 hours 300 hours 200 hours RM2.50 RM3,20 Additional information about Job E: 1. Manufacturing overhead is absorbed based on machine hour for Machining department and direct labour hour for Finishing department. 2. Administrative expenses incurred for Job E was 15% of prime cost 3. The company set the profit margin of 25% on total cost for Job E. At the end of the…
QUESTION 2 Seroja Sdn. Bhd. manufactures customized equipment for local market. The budgeted data for the month of February 2019 were as follows: Machining Department Finishing Department Manufacturing overhead RM40,000 RM65,000 Direct labour hours 2,000 hours 10,000 hours Machine hours 4,000 hours 5,700 hours During the month, an order was received from Mr. Eric to manufacture an equipment for his personnel use. The job is known as Job E and the data pertaining to the job were as follows: Machining Department Finishing Department Direct material RM2,800 RM1,200 Direct labour hours 500 hours 50 hours Machine hours 300 hours 200 hours Wage rate per hour RM2.50 RM3.20 Additional information about Job E: Manufacturing overhead is absorbed based on machine hour for Machining department and direct labour hour for Finishing department. Administrative expenses incurred for Job E was 15%…
Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $165,600, and 18,400 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. $ per sales order b. Determine the amount of sales order processing cost associated with 10,500 sales orders. $
ost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow: Delmar Company Plant Eastern Region Central Region Western Region Department Cost Chip Fabrication Electronic Assembly Final Assembly Budget Performance Report-Vice President, Production For the Month Ended June 30 a. $ Factory wages Materials Power and light Maintenance b. $ c. $ d. $ e. $ f. $ Actual $390,100 278,100 (g) $(j) Delmar Company Actual $(a) 87,290 137,620 $(d) Budget $390,100 280,900 Actual Budget Performance Report-Manager, Western Region Plant For the Month Ended June 30 $29,190 73,790 5,320 6,920 (h) $(k) $115,220 $ (b) 86,170 138,730 $(e) Over Budget Budget $(c) 1,120 Over Budget Budget (1) $(1) g. $ h. $ j. $ k. $ 1. $ Delmar Company Budget Performance Report-Supervisor, Chip Fabrication For the Month Ended June 30 (Under) Budget $(f) $0 (2,800) $27,280 74,310 4,470 850 6,320 600 $112,380 $3,360 $(520) a. Complete the budget performance reports…
Task 2 (Budgeting) Aqua Safe produces water purifiers for domestic use. The production expenses for the production of 5,000 units of water purifiers in its factory is given in Table T2: Materials Labour Variable Overheads Fixed Overheads Table T2 Administrative Expenses (5% Variable) Selling Expenses (20% Fixed) Distribution Expenses (10% Fixed) Total Cost of Sales (for 5,000 units) 4200 2100 1400 900 1000 570 480 10650 You are required to prepare a flexible budget for the production of 7000 units and 14000 units of water purifiers.
Submit A manufacturing company has two service departments, Custodial Services and Maintenance, and three production departments, Cutting, Milling, and Assembly. The company allocates the cost of Custodial Services on the basis of square footage and Maintenance on the basis of labor-hours. No distinction is made between variable and fixed costs. Budgeted operating data for the year just completed follow: Custodial Services Maintenance Cutting Milling Assembly Budgeted costs before allocatlon $20,000 $12,000 $ 120,000 $75,000 $135,000 Square feet 2,000 20,000 10,000 44,000 26,000 Labor hours 4,000 8,000 8,000 a. Calculate the Custodial Services cost that would be allocated to Assembly Department by the direct method. O None of the answers listed O $8,000 O $11,000 O $5,200 O $6,500 b. Calculate the total cost of Assembly Department if the company uses the step-down method rather than the direct method. Assume that the company allocates Custodial Services cost first. O $146,200 O…
Xuereb Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 35 skeins of wool at a cost of $6 per skein and 0.8 gallons of dye at a cost of $10 per gallon. All other materials are indirect. At the beginning of the year Xuereb has an inventory of 466,000 skeins of wool at a cost of $1,165,000 and 4,400 gallons of dye at a cost of $27,280. Target ending inventory of wool and dye is zero. Xuereb uses the FIFO inventory cost flow method. A (Click the icon to view the additional information.) There is no direct manufacturing labor cost for dyeing. Xuereb budgets 50 direct manufacturing labor-hours to weave a rug at a budgeted rate of $17 per hour. It budgets 0.2 machine-hours to dye each skein in the dyeing process. E (Click the icon to view the budgeted overhead costs.) Read the requirements. Requirement 1. Prepare a direct material usage budget in both units and dollars. More Info Begin with the physical units portion, then…
An electrical repair service company has produced the following budget for the year ahead: Office repairs House repairs Total £ £ Received from customers Variable costs Fixed costs (apportioned) Profit (loss) 45,000 (24,000) (7,000) 14,000 24,000 (18,000) (8,000) (2,000) 69,000 (42,000) (15,000) 12,000 The fixed costs, which relate to rent and insurance, will be incurred irrespective of the type of activity carried out. Which of the following decisions is supported by the information in the table? A) If the company ceases to carry out house repairs, it will increase total profit from 12,000 to 14,000 B) If the company ceases to carry out house repairs, it will increase total profit from 12,000 to 18,000 C) If the company ceases to carry out house repairs, it will reduce total profit from 12,000 to 6,000 D) If the company ceases to carry out house repairs, it will reduce total profit from 12,000 to 4,000
TB Problem Qu. 10-240 (Algo) The following data have been provided by Lopus... The following data have been provided by Lopus Corporation: Budgeted production Standard machine-hours per unit Standard lubricants Standard supplies Actual production Actual machine-hours Actual lubricants (total) Actual supplies (total) 3,400 units Lubricants Supplies 3.5 machine-hours $ 5,00 per machine-hour $ 3.70 per machine-hour Variable Overhead Spending Variance 3,700 units 8,880 machine-hours Required: Compute the variable overhead spending variances for lubricants and for supplies. $46,084 $32,492 (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
A https://camdenccinstructure.com/courses/3788/assignmen * QuestionTO ces View Policies ions Current Attempt in Progress 5 Support The master budget of Waterway Industries shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: al Indirect labor $820000 Machine supplies 280000 Indirect materials 310000 Depreciation on factory building 250000 Total manufacturing overhead $1660000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of $1942000. O $1992000. O $1742000. $1660000.
Question V – Allocate Costs with Reciprocal Method (8 Marks) Anchor Company manufactures a variety of tool boxes. They have two operating divisions – Corporate Sales and Consumer Sales – and two support divisions –Admin and IT. Each operating division operates independently. Anchor uses the number of employees to allocate Admin costs and computer processing time to allocate IT costs. The following data are available for the month: SUPPORT DEPT OPERATING DEPT Admin IT Corp Sales Cons. Sales Budgeted costs before interdivision allocations $170,000 $400,000 $2,000,000 $1,000,000 Admin budgeted # of employees 40 80 70 IT budgeted # of processing time (in minutes) 600 4,000 3,400 REQUIRED: Using the reciprocal method, allocate the support department costs.