LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.1 hours of direct labor at the rate of $27.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.
Q: An alphabetical list of Ivanhoe Company adjusted accounts at its fiscal year end, August 31, 2024,…
A: The financial statements of the business include income statement, statement of owners' equity and…
Q: Preferred and Potter Company has outstanding 17.000 shares of $50 par value. 8% preferred stock and…
A: The dividend is distributed to shareholders from the retained earnings of the business. The…
Q: The plant manager of the Ohio factory is responsible for two cost centers: Clothing and Shoes. Resp-…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: The following information is available for Aricanly Manufacturing Company for the month ending…
A: Cost sheet is a method of allocating total costs into different categories. It helps to identify the…
Q: Lakey Corporation has an activity-based costing system with three activity cost pools-Machining.…
A: Under activity-based costing method, the cost is allocated to each activity based on its…
Q: The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who…
A: Partnership liquidation is the process of ending a partnership and distributing its assets.During…
Q: Firms invest in marketable securities for a variety of reasons. One of the most common reasons is to…
A: Investment assets are those assets which are purchased in order to make short term or long term…
Q: Oriole Boxes uses a petty cash imprest system. The fund was established on February 14 with a…
A: Journal entry is the primary reporting of the business transactions in the books of accounts. These…
Q: On January 1, 2020, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In…
A: Gain = Loan repaid - Carrying amount of Loan
Q: . Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January…
A: Consolidated worksheet in accounting is a financial statement that combines the financial…
Q: Use the following information for the Exercises 12-13 below. (Algo) [The following information…
A: Bank reconciliation statement :— It is the statement that shows the reconciliation of balance as per…
Q: The Albertville City Council decided to pool the investments of its General Fund with Albertville…
A: Interest is of $ 86,000 i.e. interest collected of $ 54,000 and interest accrued of $ 32,000.…
Q: Cox Electric makes electronic components and has estimated the following for a new design of one of…
A: Breakeven is a level of production / sales where the entity achieves a no profit / no loss point.…
Q: A corporation makes one specific product. The company budgeted production of 3,500 units for the…
A: Lets understand the basics.Variable overhead efficiency variance is a variance between the standard…
Q: At the beginning of the current period, Cheyenne Ltd. had balances in Accounts Receivable £286,000…
A: Allowance for doubtful accounts is a contra asset account and hence its normal balance is credit. It…
Q: Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance…
A: Under the allowance method the bad debts expense is based on an estimate of the accounts receivable…
Q: Blue Corporation issued $408,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025,…
A: Bond refers to a fixed-income instrument, used by organizations to raise money. Borrowers issue…
Q: Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate…
A: The pre-determined overhead rate is calculated as the estimated overhead costs divided by the…
Q: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The…
A: Turnover = Net sales / average operating assets Rate of return on investment = Net Operating Income…
Q: List the components of a statement of comprehensive income statement.
A: The objective of the question is to identify and explain the components of a statement of…
Q: Based on past experience, Maas Corp. (a U.S. -based company) expects to purchase raw materials from…
A: The rate at which one country’s currency can be converted into another country’s currency referred…
Q: Robinson owns a warehouse that is used in his auto parts store. The warehouse has a FMV of $91,300,…
A: A mortgage is a legal agreement or fiscal arrangement used to buy real estate, generally a home or…
Q: irect Call offers a calling plan that charges $5.00 per month plus $0.02 per minute of call time.…
A: Variable cost varies with production while fixed cost remains the same irrespective of the units…
Q: Zira Company reports the following production budget for the next four months. Each finished unit…
A: Direct Material Budget :— This budget is prepared to estimate the number of units and cost of…
Q: Division X makes a part that it sells to customers outside of the company. Data concerning this part…
A: Here in this question, we are required to calculate lowest acceptable transfer price.Transfer Price…
Q: Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as…
A: The income statement is a critical statement of finances that offers important information about a…
Q: E9-2 (Algo) Computing and Recording a Basket Purchase and Straight-Line Depreciation [LO 9-2, LO…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: Explain the ABC inventory management system and the just-in-time inventory managementsystem
A: The objective of this question is to understand two different inventory management systems: ABC and…
Q: A summary of the time tickets for the current month follows: Job No. Amount 100 $1,940 101 1,610…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: The following information is available for Trinkle Company for the month of June: 1. The unadjusted…
A: Lets understand the basics.Bank reconciliation: It is a statement drawn up by the business to verify…
Q: Packaging Solutions Corporation manufactures and sells a wide variety of packaging products.…
A: Variances is the amount of difference between the actual values and the values estimated by the…
Q: COTB MC Qu. 10-73 (Algo) Assume the following information appears in... Assume the following…
A: The Variance is the difference between the actual and standard cost of production. Direct labor…
Q: Donna is working on the budgeted fixed-MOH rate for the upcoming year. Her company has recently…
A: The costs incurred during the production of goods that cannot be directly linked to a particular…
Q: Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: (b) What would be the effect on income if product A were dropped? Net income would by $
A: Differential analysis is a management accounting technique in which we assess only the changes in…
Q: a. What is Sven's alternative minimum taxable income (AMTI)? Description Regular taxable income AMTI…
A: There are adjustments which are required to be made on the regular taxable income and if there is a…
Q: Pasternik Company produces and sells two products, Alpha and Zeta. The following information is…
A: Activity-based costing is used to allocate overhead expenses on the basis of activity. Other than…
Q: Comfy Backpacks started and finished job number TK474, a batch of 300 backpacks, during July. The…
A: Cost per unit means the amount of cost incurred on the making of each product of the job. It is…
Q: At the beginning of its fiscal year, Lakeside Incorporated leased office space to LTT agreement. The…
A: Depreciation: Depreciation is the process of reducing the value of the assets. It is a non-cash…
Q: Discuss how accounts receivable and inventory can be used as collateral for short term securedloan.
A: The objective of this question is to understand how accounts receivable and inventory can be used as…
Q: Describe the role of mutual funds as financial intermediaries.
A: The primary role of mutual funds as financial intermediaries is to pool the resources of many small…
Q: Sylvestor Systems borrows $103,000 cash on May 15 by signing a 150-day, 4%, $103,000 note. 1. On…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Listed below are the transactions that affected the shareholders' equity of Branch-Rickie…
A: The stockholder's equity section is a section of a company's balance sheet that shows the company's…
Q: Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period,…
A: Income tax is based on income. Suppose a person has salary income, capital gain income, house rent…
Q: Corporate legal office salaries. Shoe Department cost of sales-Brentwood Store Corporate…
A: Direct costs are those costs that are easily identifiable with the product or a specific cost…
Q: 1. The records of the Bulacan Stereo Company showed the following information for three months…
A: An income statement stands for the statement that shows profits and loss of the firm, its revenue…
Q: Chad is divorced. His divorce was finalized on June 1, 2020. Chad's divorce decree states he is to…
A: In California, as in the United States in general, family support payments are treated differently…
Q: Sleepy Time is a retaller of luxury bed frames located in Los Angeles, California. Due to a recent…
A: The break-even point indicates that total units are to be sold by the business entity to recover its…
Q: The following information relates to the Brian Lee Company.
A: Ending inventory is an important component of a company's balance sheet, and precise value is…
Q: REI sells snowboards. Assume the following information relates to REI's purchases of snowboards…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. The ending…
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Step by step
Solved in 3 steps with 1 images
- Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: Question Content Area 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc.Overhead BudgetFor the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours blank Maintenance $fill in the blank ddf6cc027003019_1 $fill in the blank ddf6cc027003019_2 blank Power fill in the blank ddf6cc027003019_3 fill in the blank ddf6cc027003019_4 blank Indirect labor fill in the blank ddf6cc027003019_5 fill in the blank…Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A Product BRequired Investment…Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A Product BRequired Investment…
- Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A…Spree Party Lights overhead expenses are: Indirect material, pounds per unit Indirect material, cost per pound Indirect labor hours Indirect labor rate per hour Variable maintenance per unit Variable utilities per unit Supervisor salaries Maintenance salaries Insurance Depreciation Units to Produce Variable Costs Indirect Material Indirect Labor Maintenance Prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,400, 3,100, and 2,800, respectively. Spree Party Lights Manufacturing Overhead Budget For the Quarter Ending January - March January February 2,400 3,100 Utilities Total Variable Manufacturing Costs Fixed Costs 0.30 Supervisory Salaries Maintenance Salaries Insurance Depreciation Total Fixed Manufacturing Coats Total Manufacturing Overhead $2 $16.50 $0.75 $0.20 $11,000 $9,000 $3,000 $1,600 1,440 30,500 1.1900 11,000 5,000 3,000 1,500 24,600 67,020 1,860 51,150 620 53,955 11,000 9,000 3,000 1,000 24,400 10,355 March 2,1800…B. Cleanexstar provides a cleaning service for small offices. Cleanexstar calculates a predetermined overheads rate based on total direct labor hours. The budgeted overhead cost for Cleanexstar is RM520,000. The following related information is provided for direct labor hours. Estimated hour per worker 2,000 Number of workers 25 You are required to calculate: i) Total direct labour hours ii) Predetermined overhead rate iii) The actual direct labour hours for Client A are 144 hours. Calculate the overheads absorbed into Client A.
- Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Multiple Choice O $15.60. O Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department? $3.40 Assembly 190,000 DLH 390,000 MH $16.10. $ 390,000 Finishing) 149,000 DLH: 95,550 MH $ 581,100Bramble Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.50 Indirect materials 1.10 Utilities 0.80 Fixed overhead costs per month are Supervision $5,120, Depreciation $1,536, and Property Taxes $1,024. The company believes it will normally operate in a range of 8,960–12,800 direct labor hours per month.Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1,280 direct labor hours. (List variable costs before fixed costs.) BRAMBLE COMPANYMonthly Manufacturing Overhead Flexible BudgetFor the Year 2022 select an opening overhead flexible budget item select an item enter a number of hours enter a number of hours enter a…Synergy Corporation applies manufacturing overhead based on direct labor hours. Synergy estimates its budgeted manufacturing overhead cost for the coming year to be $400,000 and its budgeted direct labor hours to be 100,000 hours. What is Synergy's budgeted overhead rate? A) $.25 per direct labor hour B) $25 per direct labor hour C) $250 per direct labor hour D) $4 per direct labor hour 2. Corner Cupcakes has the following budgeted amounts for the current month: budgeted sales in units of 3,500 at a budgeted unit selling price of $5. Actual amounts for the month were as follows: 4,000 units at a unit selling price of $4.80. What is the sales activity variance for Corner Cupcakes for the current month? A) $2,400 unfavorable B) $2,400 favorable C) $2,500 unfavorable D) $2,500 favorable 3. Roger has just been hired as an accountant and is in the process of performing some cost accounting calculations. The factory where he works produces tennis balls and uses a plant-wide cost…
- Hamid Ltd produces two products – shoes and belts. At present the company uses absorption costing, based on a labour hours rate, to establish the production overhead costs. The budgeted information for Period 4 is shown below. Product Shoes Belts Production in units 6000 5000 Machine hours per unit 5 hrs 6 hours Labour Hour per unit 3 hours 7 hours The overhead and cost driver information for Period 4 is shown below. Activity Cost in (£) Product Inspection 46,200 Machine Set-up 21,000 Machine maintenance 20,800 Handling and Packaging 26,400 Additional information Product inspection – one in every ten products is inspected. Machine set-up – the company uses a single machine to produce both products. For period 4, 300 setups will be made that will be shared equally between both the products. Machine maintenance – this is based on a predetermined number of machine hours. Product handling and packaging – each product…Magnify Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available the year 2020. Machine setup-hours is the only driver of manufacturing overhead costs. Magnify has a set up capacity of 1,0 hours. (Click the icon to view the information.) Calculate the manufacturing overhead costs budget (label it Schedule 5). Schedule 5: Manufacturing Overhead Costs Budget for the Year Ending December 31, 2020 Machine Setup Overhead Costs Total manufacturing overhead costs Data table 1. Quantity of lamps to be produced 2. Number of lamps to be produced per batch 3. Setup time per batch Variable cost = $65per setup-hour Fixed cost $78,000 = Print Knox 21,000 lamps 50 lamps/batch 2 hours/batch Done Ayer 15,000 lamps 200 lamps/batch 3 hours/batch XNovak Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor: $1.10, Indirect materials: 0.80, Utilities: 0.50. Fixed overhead costs per month are Supervision $4, 000, Depreciation $1, 200, and Property Taxes $800. The company believes i will normally operate in a range of 7, 000-10, 000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1, 000 direct labor hours. (List variable costs before fixed costs.)
