FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Gasherbrum plc are preparing their budget for the coming year. Budgeted selling unit price is £30. Budgeted material cost for each unit is 50% of the selling price, while budgeted labour cost is 20% of the selling price. Each unit is expected to incur direct expenses of £1 on top of the budgeted materials and labour costs. Distribution and selling costs are budgeted to be £9,000 per annum and budgeted administration costs are £1,200 per month. Demand in November is budgeted to be 11,025 units. What is Gasherbrum plc's budgeted gross profit for November? O £87,450 O £88,200 O £86,250 O £99,225arrow_forwardCalico Company costs its products using a normal costing system. Overhead is applied on the basis of machine hours. The following information is available for last year:Budget ActualOverhead ................................. $525,000 $497,500Machine hours......................... 50,000 48,000Direct labor hours.................... 75,000 72,000Prime cost................................ $561,750Units produced ........................ 175,000Required:1.What is the predetermined overhead rate?2.What is the applied overhead for last year?3.Was overhead over- or underapplied and by how much?4.What is the total manufacturing cost?arrow_forwardCanucks plc has prepared the following flexible budget for the coming year. The Budgeted level of activity is 7,500 units. SalesDirect material Direct labour Variable overheads Fixed overheads Profit £ 250,000 75,000 60,000 30,000 45,000 22,500 If the budget is flexed to a level of activity of 10,000 units, what would the total budgeted cost be? a) £265,000 b) £280,000 c) £123,750 d) £168,750arrow_forward
- Verdi plc’s budget for the first month of trading, during which production of 3,000 units and sales of 2,700 units are predicted, is as follows: Variable productions costs £136,000; Fixed production costs £102,500; Selling price is £500 per unit. The profit calculated on the absorption cost basis compared to the marginal cost basis will be?arrow_forward← The operating budget for a certain company shows a net income of $353,920. To achieve this, the company is targeting sales of $644,000, variable costs of $283.360, and fixed costs of $6,720. Compute the break-even point in sales dollars. The break-even point in sales dollars is $ (Round to the nearest cent as needed Round att intermediate values to six decimal places as needed.)arrow_forwardA company's flexible budget for 15,000 units of production reflects sales of $330,000; variable costs of $90,000; and fixed costs of $97,500. Calculate the expected level of income if the company produces and sells 18,000 units.arrow_forward
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