Prepare a flexible budget using the following information: Sales Price $20 per unit Cost of goods...
Prepare a flexible budget using the following information: Sales Price $20 per unit Cost of goods sold is 30% of Sales Price Variable Operating Cost are $2.50 per unit sold Fixed Operating Cost are $15,000 Sales levels 10,000, 12,500, 15,000
Homework Answers
| Flexible budget | |||
| Sales level (units) | 10000 | 12500 | 15000 |
|
Sales [ Sales units * Sales price per unit ] |
200000 [ 10000*20 ] |
250000 [ 12500*20 ] |
300000 [ 15000*20 ] |
|
(-) Cost of goods sold [ 30% of sales ] |
60000 [ 200000*30% ] |
75000 [ 250000*30% ] |
90000 [ 300000*30% ] |
| Gross profit | 140000 | 175000 | 210000 |
|
(-) Variable operating cost [ Sales units * Variable operating cost per unit ] |
25000 [ 10000*2.50 ] |
31250 [ 12500*2.50 ] |
37500 [ 15000*2.50 ] |
| (-) Fixed operating costs | 15000 | 15000 | 15000 |
| Net operating income | 100000 | 128750 | 157500 |
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Prepare a flexible budget using the following information: Sales
Price $20 per unit Cost of goods...
Use the following data to prepare a flexible budget for possible sales/production levels of 10,000, 11.000,...
Use the following data to prepare a flexible budget for possible sales/production levels of 10,000, 11.000, and, 12.000 units. Show the contribution margin at each activity level Sales price $24.00 per unit Variable costs Manufacturing $12.00 per unit $300 per unit Administrative Selling $100 per unit Foxed costs Manufacturing $60.000 Administrative $20.000 Answer Flexible Budget for Various Levels of Sales/Production Activity
Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit...
Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is $ 3.40. Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.80 . Requirement 3. What is the budgeted fixed cost for the period? The budgeted fixed cost for the period is $ 69,000 Requirements 4 and 5. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable...
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity...
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters’s flexible budget at the 90,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. 70,000 Units 80,000 Units 90,000 Units Sales $1,400,000 $1,600,000 Cost of goods sold 840,000 960,000 Gross profit on sales $560,000 $640,000 $0 Operating expenses...
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity...
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 90,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. 90,000 Units Sales Cost of goods sold Gross profit on sales Operating expenses (590,000 fixed) Operating income Income taxes (30% of operating income) Net...
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity...
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 105,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. 70,000 Units 80,000 Units 105,000 Units Sales $1,400,000 $1,600,000 Cost of goods sold 840,000 960,000 Gross profit on sales $560,000 $640,000 Operating expenses ($90,000...
1. Prepare the flexible budget using the information provided. Show calculations/explain where the numbers come from....
1. Prepare the flexible budget using the information provided.
Show calculations/explain where the numbers come from.
2. Answer the corresponding questions about the variances of the
budget.
Class Exercise for Standard Cost BUDGET 10,000 FLEXIBLE Units of output planned and actual ACTUAL 9,000 Direct material units per unit of output units price Labor units per unit of output hours rate Sales 300,000 306,000 Less variable costs of manufacturing Direct Material Direct Labor Factory Overhead Total 120,000 40,000 60,000 220,000 117,000...
Return to questi Outdoor Outfitters has created a flexible budget for the 70,000 unit and the...
Return to questi Outdoor Outfitters has created a flexible budget for the 70,000 unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 108,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. 108,000 Units Sales Cost of goods sold Gross profit on sales Operating expenses ($90,000 fixed) Operating income Income taxes (30%...
Required information Problem 21-1A Preparation and analysis of a flexible budget LO P1 The following information...
Required information Problem 21-1A Preparation and analysis of a flexible budget LO P1 The following information applies to the questions displayed below.] Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $3,300,000 Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management...
Please show excel equations. Thank you Simon Enterprises has the following information available: Actual Budget 15,000...
Please show excel equations. Thank you
Simon Enterprises has the following information available: Actual Budget 15,000 $20 $8 $145,000 Units Sold Selling Price Variable Costs Per Unit Fixed Costs 12,000 $21 $150.000 Required 1. Prepare the static budget using all of the budgeted amount 2. Prepare the actual income statement using all of the actual amounts 3. Prepare the flexible budget 4. Calculate the sales volume variances 5. Calculate the flexible budget variances 6. Comment on the results Actual Flex...
A) Prepare a flexible budget for each of the possible production levels: 90,000, 100,000, and 110,000...
A) Prepare a flexible budget for each of the possible production
levels: 90,000, 100,000, and 110,000 units. (List
variable costs before fixed costs.)
B) What are the units to be sold?
Exercise 23-07 a-b (Video) (Part Level Submission) Bramble Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected...
Use the following data to prepare a flexible budget for possible sales/production levels of 10,000, 11.000, and, 12.000 units. Show the contribution margin at each activity level Sales price $24.00 per unit Variable costs Manufacturing $12.00 per unit $300 per unit Administrative Selling $100 per unit Foxed costs Manufacturing $60.000 Administrative $20.000 Answer Flexible Budget for Various Levels of Sales/Production Activity
Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is $ 3.40. Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.80 . Requirement 3. What is the budgeted fixed cost for the period? The budgeted fixed cost for the period is $ 69,000 Requirements 4 and 5. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable...
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 90,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. 90,000 Units Sales Cost of goods sold Gross profit on sales Operating expenses (590,000 fixed) Operating income Income taxes (30% of operating income) Net...
1. Prepare the flexible budget using the information provided.
Show calculations/explain where the numbers come from.
2. Answer the corresponding questions about the variances of the
budget.
Class Exercise for Standard Cost BUDGET 10,000 FLEXIBLE Units of output planned and actual ACTUAL 9,000 Direct material units per unit of output units price Labor units per unit of output hours rate Sales 300,000 306,000 Less variable costs of manufacturing Direct Material Direct Labor Factory Overhead Total 120,000 40,000 60,000 220,000 117,000...
Return to questi Outdoor Outfitters has created a flexible budget for the 70,000 unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 108,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. 108,000 Units Sales Cost of goods sold Gross profit on sales Operating expenses ($90,000 fixed) Operating income Income taxes (30%...
Required information Problem 21-1A Preparation and analysis of a flexible budget LO P1 The following information applies to the questions displayed below.] Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $3,300,000 Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management...
Please show excel equations. Thank you
Simon Enterprises has the following information available: Actual Budget 15,000 $20 $8 $145,000 Units Sold Selling Price Variable Costs Per Unit Fixed Costs 12,000 $21 $150.000 Required 1. Prepare the static budget using all of the budgeted amount 2. Prepare the actual income statement using all of the actual amounts 3. Prepare the flexible budget 4. Calculate the sales volume variances 5. Calculate the flexible budget variances 6. Comment on the results Actual Flex...
A) Prepare a flexible budget for each of the possible production
levels: 90,000, 100,000, and 110,000 units. (List
variable costs before fixed costs.)
B) What are the units to be sold?
Exercise 23-07 a-b (Video) (Part Level Submission) Bramble Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected...
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