August. The company's flexible budget for August appears below:Quilcene OysteriaFlexible BudgetFor the Month Ended August 31Actual pounds (q)7,500Revenue ($4.10q)Expenses:$30,750Packing supplies ($0.30q)Oyster bed maintenance ($3,300)2,2503,300Wages and salaries ($2,400 + $0.30q)Shipping ($0.55q)4,6504, 125Utilities ($1,220)Other ($440 + $0.019)1,220515Total expense16,060Net operating income$ 14,690The actual results for August appear below:Quilcene OysteriaIncome StatementFor the Month Ended August 31Actual pounds7,500Revenue$26,500Expenses:Packing supplies2,420Oyster bed maintenance3,160Wages and salaries5,0603,855ShippingUtilities1,030Other1,135Total expense16,660$ 9,840Net operating income Required:Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Quilcene OysteriaRevenue and Spending VariancesFor the Month Ended August 31RevenueExpenses:Packing suppliesOyster bed maintenanceWages and salariesShippingUtilitiesOtherTotal expenseNet operating income

Revenue and spending variances are based on Budgeted costs for actual level of activity and actual…

August. The company's flexible budget for August appears Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,500 Revenue ($4.10q) Expenses: $30,750 2,250 3,300 Packing supplies ($0.30q) Oyster bed maintenance ($3,300) Wages and salaries ($2,400 + $0.30q) Shipping ($0.55q) Utilities ($1,220) 4,650 4,125 1,220 Other ($440 + $0.019) 515 Total expense 16,060 Net operating income $14,690 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,500 Revenue $26,500 Expenses: Packing supplies 2,420 3,160 Oyster bed maintenance Wages and salaries 5,060 3,855 Shipping Utilities 1,030 Other 1,135 Total expense 16,660 $ 9,840 Net operating income

August. The company's flexible budget for August appears Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,500 Revenue ($4.10q) Expenses: $30,750 2,250 3,300 Packing supplies ($0.30q) Oyster bed maintenance ($3,300) Wages and salaries ($2,400 + $0.30q) Shipping ($0.55q) Utilities ($1,220) 4,650 4,125 1,220 Other ($440 + $0.019) 515 Total expense 16,060 Net operating income $14,690 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,500 Revenue $26,500 Expenses: Packing supplies 2,420 3,160 Oyster bed maintenance Wages and salaries 5,060 3,855 Shipping Utilities 1,030 Other 1,135 Total expense 16,660 $ 9,840 Net operating income

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,300 Revenue ($4.259) $ 31,025 Expenses: Packing supplies ($0.409) 2,920 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,400 + $0.459) 5,685 Shipping ($0.709) 5,110 Utilities ($1,290) 1,290 other ($450 + $0.019) 523 Total expense 18,628 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 $ 12,397 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities other Total expense Net operating income Required: 7,300 $ 26,900 3,090 2,960 6,095 4,840 1,100 1,143 19,228 $ 7,672 Calculate the company's revenue and spending variances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive…
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 80 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Cost per Cruise $ 477.00 Cost per Passenger Fixed Cost per Month $ 6,000 $ 2,500 $ 5,300 $ 3,300 $ 3.00 Vessel operating costs Advertising Administrative costs $ 31.00 $ 1.50 Insurance For example, vessel operating costs should be $6,000 per month plus $477.00 per cruise plus $3.00 per passenger. The company's sales should average $31.00 per passenger. In July, the company provided 52 cruises for a total of 3,200 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible…
Actual pounds (9) Flexible Budget For the Month Ended August 31 Revenue ($4.189) Expenses: Packing supplies ($0.309) Oyster bed maintenance ($3,500) Wages and salaries ($2,000 + $0.459) Shipping ($0.659) Utilities ($1,250) Other ($510 + $0.019) Total expenses Net operating income The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 7,400 $ 30,340 2,228 3,500 5,330 4,810 1,250 584 17,694 $ 12,646 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Required: 7,400 $ 26,700 2,390 3,360 5,740 4,540 1,060 1,204 18,294 $ 8,406 Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values. Revenue Quilcene Oysteria Revenue and Spending Variances For the…
Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($400.00g) Expenses: Wages and salaries ($11,100+ $124.00g) Supplies ($4.00g) Equipment rental ($2,300+ $24.00g) Insurance ($3,800) Miscellaneous ($500+ $1.48q) Total expenses Net operating income During May, the company's actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. Note: Round your answers to the nearest whole number. 250 $ 100,000 42,100 1,000 8,300 3,800 870 56,070 $ 43,930
es w Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($390.00q) Expenses: Wages and salaries ($11,200 + $126.00q) Supplies ($4.00q) Equipment rental ($2,300 + $22.00q) Insurance ($4,200) Miscellaneous ($500+ $1.46q) Total expense Net operating income During May, the company's actual activity was 340 diving-hours. 350 $ 136,500 Puget Sound Divers Flexible Budget For the Month Ended May 31
Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (g) Revenue ($460.00g) Expenses: Wages and salaries ($11,200 + $128.00q) Supplies ($4.00q) Equipment rental ($2,400 + $22.00q) Insurance ($3,900) Miscellaneous ($500 + $1.44q) Total expenses Net operating income 250 $ 115,000 43,200 1,000 7,900 3,900 860 56,860 $ 58,140 During May, the company's actual activity was 240 diving-hours.
Alyssum, Inc., a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb Purchases on account $262,000 $294,000 March $360,000 The vendors have required the following terms of payment Month of purchase First month after the purchase Second month after the purchase 30% 35% 35% Calculate the total payment on account for the month of March. O A. $360,000 OB. $180,030 OC. $136,220 OD. $302,600 13
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 300 Revenue ($450.00g) $135,000 Expenses: Wages and salaries ($11,200 + $124.00g) Supplies ($4.00g) Equipment rental ($2,200 + $22.00g) Insurance ($4,000) Miscellaneous ($510 + $1.44g) 48,400 1,200 8,800 4,000 942 Total expense 63,342 $ 71,658 Net operating income During May, the company's actual activity was 290 diving-hours.
Prasad & Co. wishes to prepare ca sh budget from January. Prepare a cash budget for the first six months from the following estimated revenue and expenses: Month Total Sales Materials Wages Production Selling and оMR. OMR. OMR. Overheads Distribution OMR. Overheads OMR. January February March 10,000 11,000 14,000 15,000 15,000 20,000 10,000 7,000 7,000 11,000 10,000 12,500 2,000 2,200 2,300 2,300 2,000 2,500 1,600 1,650 1,700 1,750 1,600 1,500 400 450 450 April May 500 450 June 600 Additional Information 1. Cash balance on 1st January was OMR. 5,000. A new machinery is to be installed at OMR. 10,000 on credit, to be repaid by two equal installments in March and April. 2. Sales commission @ 5 % on total sales is to be paid within a month of following actual sales. 3. OMR. 5,000 being the a mount of 2nd call may be received in March. Sha re Premium amounting to OMR. 1,000 is also obtainable with the 2nd call. 4. Period of credit allowed by suppliers - 2 months. 5. Period of credit…
Ronstadt Limited’s budget for the four months from January to April includes the following data:1. MonthSalesMaterialsWagesOverheads $000$000$000$000January615115.030360February636120.033390March690135.036420April684130.040425 2. One-third of sales revenue is received one month after sale and the remainder is received two months after sale. The sales in the previous two months were: November $600 000; December $540 000.3. One-quarter of purchases of materials are paid for in the month of purchase. The remainder are paid for two months later. Purchases in the previous two months were: November $108 000; December $106 000.4. Two-thirds of the wages are paid in the month in which they are earned, and the balance is paid in the following month. The wages for the previous December amounted to $30 000.5. One-half of the overhead expenditure is paid in the month in which it is incurred, and the balance is paid in the following month. The overheads for the previous December were $380 000.6.…
The following information applies to questions 25 and 26 The sales budget for Fred Limited contains the following information: October November December Units 300 550 700 $ (thousands) 75,000 165,000 210,000 Sales are all on credit, with 30% collected in the month of sale and 70% in the following month. Finished goods inventory at the end of each month should be 58% of the following month's sales requirements. Prepare a finished goods inventory budget and use it to answer Following Calculate the closing finished goods inventory, in units, for October. Calculate the required production, in units, for October.