Spartans Inc. sells Widgets. In January, Spartans forecasted it would sell 5,000 Widgets for 2023. Actual sales were 4,700 Widgets. Use the following information to estimate the Flexible Budget: Standard Costs: Actual Costs Materials - 1.3 pounds plastics 1.25 pounds plastic $3.45 per pound $3.60 per pound Labor 2.50 hours 2.80 hours $11.00 per hour $13.00 per hour Price $48.00 per Widget $52.00 per Widget FMOH $35,000 $42,000 Flexible Budget Materials Costs Flexible Budget Labor Costs

Spartans Inc. sells Widgets. In January, Spartans forecasted it would sell 5,000 Widgets for 2023. Actual sales were 4,700 Widgets. Use the following information to estimate the Flexible Budget: Standard Costs: Actual Costs Materials - 1.3 pounds plastics 1.25 pounds plastic $3.45 per pound $3.60 per pound Labor 2.50 hours 2.80 hours $11.00 per hour $13.00 per hour Price $48.00 per Widget $52.00 per Widget FMOH $35,000 $42,000 Flexible Budget Materials Costs Flexible Budget Labor Costs

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
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Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and 19,000 in February. Each lens consist of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce. and 0.50 hours direct labor at a labor rate of $18 per unit. Desired inventory levels are: Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
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Lovely Wedding printing is budgeting sales of 32,000 units and already has 4,000 in beginning inventory. How many units must be produced to also meet the 6,000 units required in ending inventory?
Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of 15.9 million and cost of goods sold of 8.75 million. Advertising is a key part of Coral Seas business strategy, and total marketing expense for the year is budgeted at 2.8 million. Total administrative expenses are expected to be 675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of 500,000 during the year? What effect would that have on operating income? On income before taxes? On net income?
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