- The manufacturing overhead budget lists...
all costs of production other than direct materials and direct labor.
- Manufacturing overhead is applied based on budgeted direct labor-hours. The direct labor budget indicates that 6,200 direct labor-hours will be required during the year. The variable overhead rate is $4.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $88,100 per year, which includes depreciation of $18,000. All other fixed manufacturing overhead costs represent current cash flows. The predetermined overhead rate for would be...
$18.4
Budgeted direct labor-hours 6,200
Variable overhead rate × $4.20
Variable manufacturing overhead 26,040
Fixed manufacturing overhead 88,100
Total manufacturing overhead 114,140
Number of direct labor-hours ÷ 6,200
Budgeted overhead cost per DLH $18.4
- Candida Company is in the process of preparing its selling and administrative expense budget for the year. The company expects to produce 10,200 units and sell 13,000 units during the year. The variable selling and administrative expenses are $3 per unit. The fixed selling and administrative expenses are expected to total $106,000 during the year. The total budgeted selling and administrative expenses would be...
$145,000
- Arlington Inc. is in the process of preparing its selling and administrative expense budget for the year. The following budget data are available:
Variable Fixed
Cost per Cost
Unit Sold
Advertising $0.60 $10,700
Executive salaries - 58,500
Sales commissions 1.10 -
Other administrative 1.65 29,200
expenses
Total $3.35 $98,400
The company expects to sell 37,000 units during the year. The total budgeted selling and administrative expenses would be...
$222,350
- Waggoner Company has a cash balance of $37,000 on April 1. The company is required to maintain a cash balance of $25,200. During April expected cash receipts are $181,400. Expected cash disbursements during the month total $209,800. During April the company will need to borrow...
$16,600
- The cash budget provides necessary input data for the preparation of the...
budgeted balance sheet.
- The budget that shows the company's planned profit and serves as a benchmark against which subsequent performance can be measured is the...
budgeted income statement.
- Simpson Company makes and sells a single product. Budgeted sales for April are $1,440,000. Gross margin is budgeted at 25% of sales. If the net income for April is budgeted at $154,000, budgeted selling and administrative expenses must be...
$206,000
- The budgeted balance sheet is developed using data from the...
balance sheet from the beginning of the budget period and data contained in the various schedules.
- Which of the following statements is correct?
Unfavorable cost variances always indicate bad performance.
Favorable cost variances always indicate good performance.
Both of the above statements are correct.
Neither of the above statements are correct.
Neither of the above statements are correct.
