Premised on past experience, Mayo Corp. adopted the following budgeted formula for estimating shipping expenses. The company's shipments average 12 kilos per shipment. Shipping costs = P8,000 + (0.25 x kgs. shipped) Sales order Shipments Units shipped Sales Planned 800 800 8.000 240.000 Total kilograms shipped 9,600 Actual 780 820 9.000 288.000 12.300 The actual shipping costs for the month amounted to P10,500. The appropriate monthly flexible budget allowance for shipping costs for purposes of performance evaluation would be

Premised on past experience, Mayo Corp. adopted the following budgeted formula for estimating shipping expenses. The company's shipments average 12 kilos per shipment. Shipping costs = P8,000 + (0.25 x kgs. shipped) Sales order Shipments Units shipped Sales Planned 800 800 8.000 240.000 Total kilograms shipped 9,600 Actual 780 820 9.000 288.000 12.300 The actual shipping costs for the month amounted to P10,500. The appropriate monthly flexible budget allowance for shipping costs for purposes of performance evaluation would be

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...

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Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
Taylor corpration is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcomng year. Past trends have indicated the following dollars were spent at three different levels of outpuut. Unit Levels 10,000 12,000 15,000 A costs 25,000 29,000 35,000 B costs 10,000 15000 15000 C costs 15,000 18,000 22500 In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed and variable respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(
Apparelle Co. developed the following equation to predict certain components of its budget for the coming period: Costs = $50,000 + ($5 x direct labor hours) The $5 would approximate:a. total costb. direct labor rate per hourc. fixed cost per direct labor hourd. variable costs per direct labor hour
COA Manufacturing Company's budget for the coming year revealed the following unit data. Budgeted Net Income : P458,000 Variable Manuf. : P14 Variable Selling : P2.50 Variable General : P 0.25 Unit Selling Price: P50 Fixed Manuf. : P12 Fixed Selling : P5.50 Fixed General : P 7 Compute for the margin of safety in peso and in percentage.
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Muhanga Corporation sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. Product Sales Volume (Units) Selling Price Variable Cost R 17,600 $ 19 $ 13 S 13,600 15 6 T 54,800 16 10 What is the company's weighted-average unit contribution margin?
Westport Company is preparing its master budget for May. Use the estimates provided to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000 units, respectively, and the unit selling price is $70? 2$ b. If the beginning finished goods inventory is an estimated 6,000 units and the desired ending inventory is 11,500 units, how many units should be produced? units c. What dollar amount of materials should be purchased at $6 per pound if each unit of product requires 2.5 pounds and beginning and ending materials inventories should be 12,000 and 13,500 pounds, respectively.
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Butsoy Corporation manufactures two products – Ayko and Ayza. The budget committee gathered the following data for the budget year 200. Product Аyko Аyza Projected Sales and Inventory Requirements: Units 6,000 3,000 Selling Price P 90 100 Expected Inventory, 12/31/20B 750 400 Desired Inventory. 12/31/20C 1,100 500 Production Requirements: Cost P2 per kg. P4 per unit P3 per piece P 3 per hour P5 per direct labor hour Аyko 3 kgs 4 units Ayza Material: Beng 1 Beng 2 Beng 3 3 units 3 pcs 4 hours Direct labor 5 hours Factory overhead Materials Inventory Levels Beng 1 Beng 2 Beng 3 Expected Inventory, 12/31/20B 450 kgs. 1,200 units 1,750 pieces Desired Inventory, 12/31/20C 780 kgs. 900 units 1,400 pieces Required: Prepare the following budgets: 1. Sales budget 2. Production budget (in units) 3. Materials purchased budget in quantities and in pesos 4. Direct labor budget 5. Cost of goods sold budget (Assume a FIFO inventory system; unit costs of beginning inventory are P 40 for Ayko and P 65…
Use the information below for Mandy Corporation to answer the question that follow. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 696,000 units, estimated beginning inventory is 106,000 units, and desired ending inventory is 89,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A: 0.50 lb. per unit @ $0.71 per poundMaterial B: 1.00 lb. per unit @ $1.89 per poundMaterial C: 1.20 lb. per unit @ $0.84 per poundThe dollar amount of Material B used in production during the year is