Budgeted information for X Ltd for the following period, analyzed by product, is shown below: Product A Product B Product C Selling price per unit $11 $10.5 $8 Variable costs per unit $5.8 $6 $5.2 Attributable fixed costs $275000 $337000 $296000 Sales Units for Product A is 444000, for Product B is 666000 and for product C 355200 General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000. Required: (Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect on sales of the other two products. State and justify other assumptions made.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

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Budgeted information for X Ltd for the following period, analyzed by product, is shown below:                                                                            Product A              Product B                  Product C Selling price per unit                                            $11                          $10.5                             $8 Variable costs per unit                                            $5.8                          $6                                $5.2 Attributable fixed costs                                           $275000               $337000                        $296000 Sales Units for Product A 394600, for Product B 591900 and for product C 315680, General fixed costs, which are apportioned to products as a percentage sale are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products. (2) Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect…
Budgeted information for X Ltd for the following period, analyzed by product, is shown below:                                                                            Product A              Product B                  Product C Selling price per unit                                            $11                          $10.5                             $8 Variable costs per unit                                            $5.8                          $6                                $5.2 Attributable fixed costs                                           $275000               $337000                        $296000 Sales Units for Product A is 444000, for Product B is 666000 and for product C is 355200, General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products.
Budgeted information for X Ltd for the following period, analyzed by product, is shown below:                                                                            Product A              Product B                  Product C Selling price per unit                                            $11                          $10.5                             $8 Variable costs per unit                                            $5.8                          $6                                $5.2 Attributable fixed costs                                           $275000               $337000                        $296000 Sales Units for Product A 394600, for Product B 591900 and for product C 315680, General fixed costs, which are apportioned to products as a percentage sale are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products. (2) Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect…
The following details relates to the operations of a company for budgeted output of 10000units; selling price- GHC100, total variable cost- GH¢200000, and total fixed cost- GHC400000. At what quantity and value will the company breakeven? A. 5000units and GHC50000 B. 5000units and GHC5300 OC. 4500units and GHC45000 D. 4000unit and GHC40000
The followings are the budget for next financial year (1 January 2023 - 31 December 2023), indicating the average selling price and variable costs of each product category. The common fixed manufacturing overhead and the fixed non-manufacturing overhead costs are estimated to be $1,250,000 and $2,778,320 respectively. Table 1: Budget Jan - Dec 2023 Sales Quantity (in units) In $ Unit selling price Unit production cost Unit selling & admin variable costs (5% of selling price) In $ Revenue Variable Production Costs Selling & Admin Variable Costs Model 1 8,400 600 250 30 Folding Bike Model 2 7,500 400 180 20 Model 3 3,500 480 200 24 Electric Bike 800 2,000 850 100 Total 20,200 5,040,000 3,000,000 1,680,000 1,600,000 11,320,000 (2,100,000)| (1,350,000)| (700,000)| (680,000)| (4,830,000) (252,000) (150,000) (84,000) (80,000) (566,000) Q1. Based on the above budgeted information, calculate the expected breakeven units for the Model 2 folding bikes.
The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(
Apparelle Co. developed the following equation to predict certain components of its budget for the coming period: Costs = $50,000 + ($5 x direct labor hours) The $5 would approximate:a. total costb. direct labor rate per hourc. fixed cost per direct labor hourd. variable costs per direct labor hour
The following production and cost information is for X Company for 2019: Budgeted 10,600 productionunits Budgeted costs: Total fixed Per-unit $9.13 variable Actual $236,000 12,600 productionunits Actual costs: Total fixed Total variable $261,960 $93,625 1. What was the 2019 static budget? 2. What was the 2019 flexible budget?
Muhanga Corporation sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. Product Sales Volume (Units) Selling Price Variable Cost R 17,600 $ 19 $ 13 S 13,600 15 6 T 54,800 16 10 What is the company's weighted-average unit contribution margin?
Subject: cost accounting Q.10 From the following data, prepare flexible budget for production of 40000 units and75000 units, distinctly showing variable cost and fixed cost as well as total cost. Also indicateelements wise cost per unit. Budget output is 100000 units and budgeted cost per unit is asfollows-Direct material 95Direct labour 50Production overhead (variable) 40Production overhead (fixed) 05Administration overhead (fixed) 05Selling overhead (10% fixed) 10Distribution expenses (20% fixed) 15
Rundle Manufacturing Company established the following standard price and cost data. Sales price $ 8.20 per unit Variable manufacturing cost 3.90 per unit Fixed manufacturing cost 3,000 total Fixed selling and administrative cost 800 total Rundle planned to produce and sell 2,600 units. Actual production and sales amounted to 2,700 units. Required Prepare the pro forma income statement in contribution format that would appear in a master budget. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
K Base Machinery showed the following operating budget for the next year. Complete parts (a) through (d) below Each scenario is independent Sales $2,400,000 Fixed cost Total variable cost Total cost Net income $1,200,000 760,000 1,960,000 $440,000 (a) Calculate the contribution margin and contribution rate. The contribution margin is $ (Round to the nearest dollar as needed.) ma

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