Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 5ATC
a)
To determine
The name given to Person L budget game
b)
To determine
Whether the behavior of Person L violates any ethical standards
c)
To determine
Discuss how to stop the budget gaming of Person L
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& 4 Homework
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Gibson Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because
economic conditions vary in different regions of the country. The growth expectations per quarter are 6 percent for Cummings
Division, 4 percent for Springfield Division, and 8 percent for Douglas Division.
Required
a. Complete the sales budget by filling in the missing amounts.
b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Complete the sales budget by filling in the missing amounts. (Round your final answers to the nearest whole dollar amount.)
Second
Fourth
Quarter
Division
First Quarter
Third Quarter
Quarter
Cummings Division
Springfield Division
Douglas Division
2$
150,000
310,000
220,000
BUDGETING
A BUSINESS SCENARIO - STEP 5
FIXED COST BUDGET
Fixed costs budget will be different for every organization and will depend upon what sort of resources are consumed by each
entity..
Budg expects her fixed costs and her capital expenditure for the next three months to be as follows:
●
●
●
Rent on the new workshop of $3,000 will be paid in January to cover the months of January, February and March.
New machinery and tools will cost $15,000 and will be delivered and paid for in January. These new non-current assets will
have an expected useful life of five years and should be depreciated on the straight line basis.
She anticipates that she will receive and pay an electricity bill in March covering the period 1 January to 15 March. She
expects that this bill will be for around $1,500. Budg estimates that the new workshop will use a further $300 of electricity
between 16th and 31st March. Each month of operation should be allocated an equal amount of electricity cost.
An invoice…
Problem 1
Glidden Company manufactures a line of chocolate bars that are sold in various department and grocery stores. The company’s controller has just received the sales forecast for the coming year for Glidden Company’s three products which are the High Protein, High Sugar and No Sugar chocolate bars. Glidden has experienced large fluctuations in sales volumes and variable costs over the past two years and the controller believes the sales forecast should be carefully evaluated from a CVP perspective. Preliminary budget information for 2023 is as follows:
High Sugar High Protein No Sugar
Unit sales 100,000 100,000 200,000
Unit selling price $ 48 $ 56 $ 68
Variable manufacturing cost per unit $ 11 $ 10 $ 21
Variable selling cost per unit $ 7 $ 6 $ 10
For 2023, Glidden’s fixed factory overhead is budgeted at $ 2,000,000 and the company’s fixed, selling and administrative expenses are forecasted to be $ 600,000. Glidden’s income tax rate is 40%.
Required: (Show all calculations.…
Chapter 15 Solutions
Survey Of Accounting
Ch. 15 - 1. Pam Kelly says she has no faith in budgets. Her...Ch. 15 - 7. What is a responsibility center?Ch. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - 3. When are sales and cost variances favorable and...Ch. 15 - 4. Joan Mason, the marketing manager for a large...Ch. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 - Prob. 10Q
Ch. 15 - Prob. 11QCh. 15 - 9. Minnie Divers, the manager of the marketing...Ch. 15 - 6. How do responsibility reports promote the...Ch. 15 - Prob. 14QCh. 15 - Prob. 15QCh. 15 - Prob. 16QCh. 15 - 12. How can a residual income approach to...Ch. 15 - Prob. 18QCh. 15 - Exercise 9-6A Evaluating a profit center Helen...Ch. 15 - Prob. 2ECh. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Exercise 8-3A Determining amount and type...Ch. 15 - Prob. 6ECh. 15 - Exercise 8-4A Determining sales and variable cost...Ch. 15 - Exercise 8-5A Determining flexible budget...Ch. 15 - Exercise 8-9A Responsibility for the fixed cost...Ch. 15 - Prob. 10ECh. 15 - Exercise 8-7A Evaluating a decision to increase...Ch. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Exercise 9-9A Residual income Climax Corporation...Ch. 15 - Residual income Gletchen Cough Drops operates two...Ch. 15 - Prob. 16ECh. 15 - Prob. 17ECh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - Prob. 20PCh. 15 - Prob. 21PCh. 15 - Problem 9-20A Return on investment Sorrento...Ch. 15 - Problem 9-21A Comparing return on investment and...Ch. 15 - Comparing return on investment and residual income...Ch. 15 - ATC 8-1 Business Applications Case Static versus...Ch. 15 - Prob. 2ATCCh. 15 - Prob. 3ATCCh. 15 - ATC 9-1 Business Applications Case Analyzing...Ch. 15 - Prob. 5ATC
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