5. A company is at present working at 90% of its capacity and producing 13,500 units per annum.It operates a flexible budgetary control system. The following figures (excluding material and labourcost) are obtained from its budget :90%100%(a) Sales15,00,0003,00,50016,00,000(b) Fixed expenses(c) Semi-fixed expenses(d) Variable expensesMaterial and labour cost per unit are constant under present conditions. Profit margin is 10% at 90%3,00,5001,00,5001,49,50097,5001,42,000сaрacity.(i) You are required to determine the cost of producing an additional 1,500 units.(ii) What would you recommend for an export price for these 1,500 units taking into account thatoverseas prices are much lower than indigenous prices ?[ICWA, Inter.]

Cost of producing additional units is the costs which are associated with the producing of more…

(i) You are required to determine the cost of producing (i) What would you recommend for an export price for these 1,500 units taking into account that overseas prices are much lower than indigenous prices ? an additional 1,500 units. [ICWA, Inter.]

(i) You are required to determine the cost of producing (i) What would you recommend for an export price for these 1,500 units taking into account that overseas prices are much lower than indigenous prices ? an additional 1,500 units. [ICWA, Inter.]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 12 Sales volume (units) 15,000 Costs: Materials (E) 52,500 Labour (E) 33,800 Energy (E) 101.000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions: Materials costs are variable. Labour costs are semi-variable with a fixed element of £15,000. Depreciation is a fixed cost. An allowance for an energy price increase of 12% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by 11% The sales volume will increase by 11% The rise in the energy prices should be revised to 3% What will be the company's new selling price per unit for the year?
The data to the right pertain to the operating budget of a manufacturing company. Compute the following (a) contribution margin (b) contribution rate (c ) break - even point in sales dollars \table[[\ table[[Sales], [Fixed cost], [Total variable cost]], \table[[$145,000
2) Conner Hardware, Inc's static budget for the year is shown below: Sales (25,000 units) Cost of Goods Sold: Direct Material Direct Labor Overhead (includes $4 per unit Variable cost) Gross Profit Selling Expenses Sales Commissions (Variable) Rent (Fixed) Insurance (Fixed) General and administrative expenses Salaries (fixed) Rent (Fixed) Depreciation (Fixed) Sales Variable Cost: Direct Materials Direct Labor Variable OH Sales Commission Total Variable Cost Contribution Margin Fixed Cost: Fixed OH Rent Expense-Selling Insurance Expense Salaries Expense Rent Expense-General Prepare a flexible budget for Connor Hardware Inc. that shows a detailed budget for its static budget and its actual sales volume of 40,000 units. Use the contribution margin approach. Depreciation Expense Total Fixed Cost Income from Operations $150,000 300,000 175,000 25,000 units 50,000 90,000 35,000 100,000 40,000 60,000 $1,200,000 625,000 575,000 375,000 $ 200,000 40,000 units
Required information [The following information applies to the questions displayed below.) Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Fixed Element Variable Element Actual per Customer Total per Month for May $ 182,000 $ 110,300 $ 27,200 $ 32,600 Served $ 5,600 $ 1,600 Revenue $ 55,000 Employee salaries and wages Travel expenses Other expenses 850 $ 34,000 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 2. What amount of employee salaries and wages would be included in Adger's flexible budget for May? Amount of employee salaries and wages included in the flexible budget
! Required information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Employee salaries and wages Travel expenses Other expenses Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. Actual Total for May $ 217,000 $ 128,100 $ 35,300 $ 34,400 15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no…
Required Information [The following information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below. Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month Amount of other expenses $50,000 $36.000 $ 35,000 Variable Element per Customer Served $5,000 $1,100 $ 600 Actual Total for May $ 160,000 $ 88,000 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 4. What amount of other expenses would be included in Aager's flexible budget for May? $ 19,000 $ 34,500 28
Required information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month Variable Element per Customer $ 70,000 Served $ 6,300 $ 1,700 Actual Total for May $ 49,000 $ 199,000 $ 127,300 $ 620 $ 18,000 $ 46,100 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. 5. What net operating income would appear in Adger's flexible budget for May? Net operating income
The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Fixed Elementper Month Variable Element per Customer Served Actual Totalfor May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61,000 $ 2,200 $ 158,700 Travel expenses $ 530 $ 20,700 Other expenses $ 40,000 $ 38,000 When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 13. What amount of other expenses would be included in Adger’s planning budget for May? - What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U"…
[The following information applles to the questions displayed below.] ABC Corporation Is a service company that measures Its output based on the number of customers served. The company provided the following fixed and varlable cost estimates that It uses for budgeting purposes and the actual results for May as shown below: Actual Total for May $ 223,500 $ 126,000 20,400 S.44,300 Fixed Element Variable Element per Month per Customer Served $6,100 $ 1,500 Revenue Employee salaries and wages Travel expenses other expenses $ 68,000 $ 47,000 When preparing Its plannlng budget the company estimated that It would serve 35 customers per month; however, during May the company actually served 40 customers. 14. What activity varlance would Adger report In May with respect to Its revenue? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) Activity variance
A company predicts its production and sales will be 24,000 units. At that level of activity, its fixed costs are budgeted at $300,000, and its variable costs are budgeted at $246,000. If its activity level declines to 20,000 units, what will be its budgeted fixed costs and its variable costs? a. Fixed, $300,000; variable, $246,000 b. Fixed, $250,000; variable, $205,000 c. Fixed, $300,000; variable, $205,000 d. Fixed, $250,000; variable, $246,000 e. Fixed, $300,000; variable, $300,000
! Required information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Spending variance Actual Total for May $ 217,000 $ 128, 100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. 8. What is Adger's travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
! Required information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $950 Actual Total for May $ 217,000 $ 128,100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. Amount of employees salaries and wages included in the planning budget 11. What amount of employee salaries and wages would be included in Adger's planning budget for May?