2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed dget as variable or fixed.
Q: Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales…
A: Solution: Flexible selling and administrative expense budget is as under:
Q: Before the year began, the following static budget was developed for the estimated sales of 100,000.…
A: A flexible budget is basically considered as those budget which adjusts them self to the interest or…
Q: ncoln Corporation used the following data to evaluate their current operating system. The company…
A: Solution: Actual operating income = sales - variable cost - fixed costs = 47000*10 - 167000 - 45000…
Q: dger Corporation is a service company that measures its output based on the number of customers…
A: The spending variance is the difference between flexible budget and actual budget of the business.
Q: The static budget, at the beginning of the month, for Divine Décor Company, follows: Static…
A: Flexible budget variance is the difference between budgeted sales revenue for actual units and the…
Q: Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.x
Q: Star Company has a standard absorption and flexible budgeting system. Selected data for November…
A: Total Spending Variance - The spending variance is the difference between the budgeted cost and the…
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: Working note: ActualResults StaticBudget Static-budgetvariance Units sold 42000…
Q: allon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to…
A: Budgeting: Budgeting is a process of preparing budgets and the evaluation of it to see whether the…
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: Static budget is that budget which is fixed in nature and will not be change. But if level of…
Q: Daniels Corporation used the following data to evaluate their current operating system. The company…
A: Flexible budget vs static budget: Flexible budget is a budget which states the cost and sales…
Q: Hollaway Corp. has the following data for the current fiscal year: Actual Budget Sales…
A: Solution:- Calculation of the total sales mix variance for both products as follows:- For Product…
Q: 15,000 units sales volume to see if you get the same income as stated above Find the breakeven point…
A: Format of variable costing
Q: Schooner Corporation used the following data to evaluate its current operating system. The company…
A: The static budget variance of revenue is calculated as planned sales revenue less actual sales…
Q: Adger Corporation is a service company that measures its output based on the number of customers…
A: The variance is the difference between standard and actual data of production. The activity variance…
Q: Sanford Company original assumptions for the planning budget were: Total sales = $160,000, sale…
A: Given: Budgeted Quantity (BQ)=$160000$20=8000 unitsBudgeted Price (BP)=$20Actual Quantity (AQ)=8200…
Q: Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales…
A: Sales commission = Total sales x 16% Advertising expense = Total sales x 12%
Q: The master budget at Western Company last period called for sales of 226,000 units at $10.00 each.…
A: The question is based on the concept of Cost Accounting.
Q: Adger Corporation is a service company that measures its output based on the number of customers…
A: Fixed cost remains same i.e. it doesn't changes with the changing level of production or sales…
Q: Based on predicted production of 24,200 units, a company budgets $330,000 of fixed costs and…
A: The flexible budget can be adjusted as per the requirements.
Q: Budgeted sales for the month are
A:
Q: The following information is given for one of a company's variable expenses: • The activity variance…
A: Planned hours 1000 Actual hours 900 Difference 100
Q: The following information was drawn from the accounting records of Smith Company Static Budget…
A: Variance is used by management to identify the gaps between expected results and actual results and…
Q: A company’s flexible budget for 19,000 units of production showed sales, $87,400; variable costs,…
A: Introduction:- The flexible budget is planned to change based on the level of units volume. It is…
Q: ABC prepared flexible budgets for possible 20X1 activity levels of 115, 140, and 165 are presented…
A: What is meant by Budgeting? It is the process of estimating the future revenues and outflows on the…
Q: Before the year began, the following static budget was developed for the estimated sales of 100,000.…
A: sales per unit = sales / number of units sold = $3570000 / 100000 = $37.5 Flexible budget at 80000…
Q: Bobs Consult, uses flexible budgeting for cost review purposes. The company’s master/static budget…
A: Supervisors Salary incurred for September month = $28000 Budgeted Supervisors salaries for the year…
Q: hooner Corporation used the following data to evaluate its current operating system. The company…
A: Solution: Actual revenues = Actual units * actual selling price = 171000 *23 = 3,933,000 Budgeted…
Q: Prestridge Corporation is a service company that measures its output by the number of customers…
A: 1. Expenses under planning budget = $41500 + (1000 * 31) + (500 *31) + $38900 = $41500 + $31000 +…
Q: Using the following budgeted information for production of 10,000 and 15,000 units, prepare a…
A: Fixed costs: Fixed costs means the costs that are not dependent on the level of production of goods…
Q: Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to…
A: Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output.…
Q: Roger Company’ sells one product, and has provided the following variable and fixed estimates for…
A: Solution:- a)Calculation of the amount shown for revenue under the flexible and planning budget for…
Q: Brodrick Company expects to produce 21,700 units for the year ending December 31. A flexible budget…
A: At flexible budget, Selling price per unit = $542,500 / 21,700 units = $25 per unit So Total sales =…
Q: Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flexible…
A:
Q: Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales…
A: Flexible Budget is an important elementary Budget system that help to estimate different income and…
Q: [The following information applies to the questions displayed below.] The fixed budget for 21,400…
A: Sales per unit = Total sales / No. of units sold = 470800/21400 = $22 per unit Variable cost per…
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: static-budget variance of revenue = Actual revenue - Budget revenue
Q: From the following data, prepare flexible budget for production of 40000 units and 75000 units,…
A: A flexible budget is one that changes to a company's activity or volume levels i.e. Flexible budget…
Q: The following information was drawn from the accounting records of Smith Company Static Budget…
A: Sales price flexible budget variance = Actual sales - Flexible Budget Sales
Q: Required information [The following information applies to the questions displayed below.] Adger…
A: The activity variance is the difference between flexible budget and planning budget of the business.…
Q: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per…
A: The following calculations are done in the records of Cold X Incorporation to evaluate their…
Q: Determine the static budget and use the information to prepare a flexible budget and analysis for…
A: Step 1 A budget is a pre estimation of revenue and expenses over a specified future period.
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: Static budget is the original budget, which is not revised according to the actual units.
Q: The following data were collected by Allegro Company for the month of March: Static budget data:…
A: Flexible budget is prepared for actual level of activity based on static budget data for selling…
Q: If a flexible budget is prepared at a volume of 13,500 units, calculate the operating income. The…
A: Given: Particulars Per Unit Sales Revenue $20 Variable Cost $6 Fixed Cost 13500…
Q: 1) What amount of emplyee salaries and awages would be included in Adger's planning budget for May?…
A: Fixed cost remains same for the period, irrespective of the number of customers served. Variable…
Q: ohnson Corporation is preparing a flexible budget and desires to separate its lectricity expense,…
A: GIVEN Machine hours Electricity Expense January 3,500 P31, 500 February 2, 000 P20,000 March…
Q: If a company plans to sell 16,000 units of product but sells 20,000, the most appropriate comparison…
A: The most common appropriate comparison of the cost data associated with the sales will be by a…
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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- Required information [The following information applies to the questions displayed below.] Phoenix Company's 2019 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, 2019 Sales $3,000,000 Cost of goods sold Direct materials $975,000 225,000 60,000 300,000 195,000 200,000 Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense 1,955,000 1,045,000 75,000 105,000 250,000 430,000 125,000 241,000 90,000 Salaries Entertainment expense 456,000 Income from operations $ 159,000 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that…Required Information [The following information applies to the questions displayed below.] Phoenix Company's 2019 master budget Included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Sales Cost of goods sold Direct materials Direct labor Gross profit Selling expenses Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Packaging Shipping PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations Sales Variable costs Utilities PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Direct materials Direct labor Machinery repairs Depreciation-Plant equipment (straight-line) $ 960,000 240,000 Variable Amount per Unit 60,000 315,000 195,000 200,000 1,970,000 1,180,000…Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANYFixed Budget ReportFor Year Ended December 31, 2019 Sales $ 3,000,000 Cost of goods sold Direct materials $ 975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 1,955,000 Gross profit 1,045,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 250,000 430,000 General and administrative expenses Advertising expense 125,000 Salaries 241,000 Entertainment expense 90,000 456,000 Income from operations $ 159,000 Problem 21-1A Part 3 3. The company’s business…
- Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANYFixed Budget ReportFor Year Ended December 31, 2019 Sales $ 3,000,000 Cost of goods sold Direct materials $ 975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 1,955,000 Gross profit 1,045,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 250,000 430,000 General and administrative expenses Advertising expense 125,000 Salaries 241,000 Entertainment expense 90,000 456,000 Income from operations $ 159,000 Required:1&2. Prepare flexible budgets for…Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANYFixed Budget ReportFor Year Ended December 31, 2019 Sales $ 3,000,000 Cost of goods sold Direct materials $ 975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 1,955,000 Gross profit 1,045,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 250,000 430,000 General and administrative expenses Advertising expense 125,000 Salaries 241,000 Entertainment expense 90,000 456,000 Income from operations $ 159,000 Problem 21-1A Part 4 4. An unfavorable change in…Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANYFixed Budget ReportFor Year Ended December 31, 2019 Sales $ 3,000,000 Cost of goods sold Direct materials $ 975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 1,955,000 Gross profit 1,045,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 250,000 430,000 General and administrative expenses Advertising expense 125,000 Salaries 241,000 Entertainment expense 90,000 456,000 Income from operations $ 159,000 3. The company’s business conditions are…
- Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANYFixed Budget ReportFor Year Ended December 31, 2019 Sales $ 3,150,000 Cost of goods sold Direct materials $ 915,000 Direct labor 240,000 Machinery repairs (variable cost) 45,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($60,000 is variable) 210,000 Plant management salaries 210,000 1,935,000 Gross profit 1,215,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed annual amount) 235,000 400,000 General and administrative expenses Advertising expense 125,000 Salaries 230,000 Entertainment expense 85,000 440,000 Income from operations $ 375,000Phoenix Company's 2019 master budget included the following fixed budget report It is based on an expected production and s volume of 17,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities (S68, 000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annuel amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $3,400,000 $1,020,000 255,000 85,000 330, 000 218, 000 215,000 2,123, 000 1,277,000 102,000 136,000 270,000 508,000 131,000 241,000 100, 000 472,000 $ 297,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Seles (20,000 units) Cost of goods sold Direct neterials Direct labor Hachinery repairs…Gibco Service has budgeted the following time-and-material for 2019: Budgeted Costs For 2019 Time Material Charges Charges Painters' wages and benefits $54,000 Service manager's salary and benefits $44,000 Office employee's salary and benefits 7,400 6,000 Cost of paint 50,000 Overhead (supplies, utilities, etc.) 14,000 22,000 Gibco budgets 2,000 hours of paint time in 2019 and will charge a profit of $8 per hour on the labour rate, in addition to a 12% mark-up on the cost of paint. On February 15, 2019, Gibco is asked to prepare a price estimate to paint a building. Gibco estimates that this job will take 25 labour hours and $900 in paint. 1.Calculate the material loading charge rate % for 2019 2. What is the planned profit for the year? Do not enter $ or commas.
- Use the information provided below to prepare the Cash Budget for October, November, and December2021. Provide separate monetary columns for each month.INFORMATION1. The following data and estimates are available for a project of Fego Limited for September toDecember 2021:September October November DecemberR R R RSales 130 000 110 000 120 000 140 000Wages 40 000 34 000 38 000 39 000Fixed overheads 16 000 16 000 16 000 16 000Variable overheads 16 000 13 000 15 000 17 000Materials purchases 17 000 14 000 16 000 18 0002. Sixty percent (60%) of the sales are expected to be for cash and the balance on credit. Creditcustomers usually pay in the month after the sale.3. Labour costs are paid for in the month in which they are incurred.4. Fixed overheads include R5 000 each month for depreciation and payment is made monthly.5. Variable overheads are paid for in the month after they are incurred.6. Direct materials are purchased by electronic funds transfers each month.7. The cash balance on 01…Company has prepared the following summary from its functional budgets for the year ended 30th September 2020. Particulars Amount (in Rs.) Amount (in Rs.) Sales(1,00,000 units) 15,00,000 Opening Inventory( Zero Units) Nil Production Costs (1,15,000 units) Direct materials 4,60,000 Direct labour 5,75,000 Variable overhead 1,15,000 Fixed overhead 2,30,000 1,380,000 Closing inventory (15,000 units) (1,80,000) Cost of Sales 1,200,000 Gross Profit 3,00,000 Other overhead fixed costs (2,00,000) Net Profit 1,00,000 The directors of the company have now met to review the above statement. They have decided to revise the budget as follows: Due to competition, reduce the selling price by Rs.5 per unit and despite the reduction in selling price the demand for the product will reduce to 90,000 units. Increase some of the unit production costs: direct…Mary's Baskets Company expects to manufacture and sell 23,000 baskets in 2019 for $6 each. There are 3,000 baskets in beginning finished goods inventory with target ending inventory of 3,000 baskets. The company keeps no work- in-process inventory. What amount of sales revenue will be reported on the 2019 budgeted income statement? O A. $120,000 B. $156,000 OC. $102,000 OD. $138,000 Calculator Next