Question B3Aberdeen Ltd is preparing its labour and overhead budget for Department Y for 2012.It wishes to identify likely costs at 75%; 90% and 100% of capacity.The following Information is relevant:> Direct labour rate is £12.00 per hour> 100% capacity would represent 80,000 direct labour hours> Variable costsIndirect labour charged at £1.50 per direct labour hourConsumables charged at £0.50 per direct labour hourCanteen costs at 5% of direct and indirect labour> Seml-variable costs are expected to relate to direct labour hours as overthe previous three years:Year200920102011Direct labour hours50,00055,00058,000Semi-variable costE30,000E32,000£33,200> Fixed costsDepgeciation £35,000Maintenance £42,000Insurance £7,000RentManagement salaries £105,000£38,000Required(a)Draft the flexed budgets for Department Y of Aberdeen Ltd at the relevantlevels of operational capacity.(b)Estimate the budgetary cost for Department Y if it operated at 95% ofcapacity.

Costs are the pricing or the payments made for the services and the products produced or rendered by…

Answered: Question B3 Aberdeen Ltd is preparing…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 = Insurance = Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs T A ہے
The budget of Bisby plc shows total production overheads of £78m. They plan to work 6m hours and total labour costs for the year are £26m. Which of the following can be a suitable absorption rate for the production overhead?   i. £4 per hour ii.  £13 per hour iii.  £3 per labour cost iv.  £13 per labour cost Select one: a. i and iii b. i and iv c. ii and iii d. ii and iv
The flexible budget of Coco Corp in different levels of direct labor hours. Direct Labor HoursVariable 20,000 30,000 40,000FOH 40,000 60,000 80,000Fixed 10,000 10,000 10,000FOH 1. Each product needs 5 direct labor hours, and the company expects to produce 2,000 units in 2021. Calculate the total factory overhead rate per unit using direct labor hours as allocate base
vercise 2-Flexible budget and overhead rates: Babyl Company expects a normat capacity of 20,000 direct labor hours for March 2017. The over- head costs under this normal capacity are as follows: Fixed costs ID 1,000,000 ID 800,000 ID 2,200,000 ID 3,000,000 ID 400,000 Variable costs ID 100 per Indirect labor Other costs ID 50 per DLH Maintenance ID 120 per DLH Depreciation Supplies ID 20 per DLH Required: 1-Prepare flexible budget for levels of activity from 18,000 to 24,000 direct labor hours in increments of 2,000 direct labor hours. 2- Calculate standard overhead rates.
The flexible budget of Coco Corp. In different levels of direct labor hours. Direct labor hours 20,000 30,000 40,000 Variable FOH 40, 000 60,000 80,000 Fixed FOH 10,000 10,000 10,000 Each product needs 5 direct labor hours, and the company expects to produce 2,000 units in 2021. Calculate the total factory overhead rate per unit using direct labor hours as allocation base.
1 Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. \table[[,\table[[Flexible Budget],[at 80% Capacity]],\table[[Actual],[Results]]],[\table[[Production (in],[units)]],51,750,46,800],[Overhead,,],[\table[[Variable],[overhead]],$284,625,],[Fixed overhead,51,750,],[Total overhead,$336,375,328,100]] Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875DLH, computed as 51,750 units ×0.5DLH per unit. Compute the standard overhead applied. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) \table[[\table[[1. Standard overhead],[rate]],,],[\table[[2. Standard overhead],[applied]],,],[3. Overhead…
The flexible budget of Coco Corp. In different levels of direct labor hours. Direct labor hours 20,000 30,000 40,000 Variable FOH 40, 000 60,000 80,000 Fixed FOH 10,000 10,000 10,000 Each product needs 5 direct labor hours, and the company expects to produce 2,000 units in 2021. Calculate the total factory overhead rate per unit using production as allocation base
Arden Ltd tentative budget for product TYL for 2019 is shown below: Sales (2500 units at £40 a unit Manufacturing cost of goods sold 100,000 Direct labour 15,000 Direct materials 14,000 Variable factors overhead 10,000 Fixed factors overheard 5000 44,000 Gross profit 56,000 Selling express Variable 6000 Fixed 10,000 Administrative expenses Variable 5,000 Fixed 10,000 31,000 Operating income 25,0000 Required: (a). How many units of product TYL would have to be sold to break-even.] (b). What would be operating income if projected sales increased by 30%.
If Activity X had a budgeted cost of $164,000 and a budgeted activity consumption of 8,000 engineering hours, what would the activity consumption rate be? $0.13 per hour $0.05 per hour $8 per hour $3 per hour $20.50 per hour
Recent IT costs incurred each month at the head office of Dawn Ltd are detailed below. Apply the high/low method to establish how the cost behave and then select the correct prediction of cost for a month in which 770 client projects will be completed by the company month Number of clients project IT cost (£) 1 730 £116150 2 800 £123000 3 625 £112500 4 790 £120980 a. £94,200 b. £121,200 c. £122,000 d. £119,780
Dakota Co. has prepared the following flexible budget for the coming year. The budgeted level of activity is 5,000 units. SalesDirect material Direct labour Variable overheads Fixed overheads Profit £ 125,000 37,500 30,000 15,000 20,000 22,500 If the budget is flexed to a level of activity of 7,500 units, what would be the budgeted total costs be? a) £102,500 b) £110,000 c) £143,750 d) £126,000
Current Attempt in Progress Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor Indirect materials Utilities $1.30 0.60 0.20 Fixed overhead costs per month are Supervision $4,000, Depreciation $1,600, and Property Taxes $700. The company believes it will normally operate in a range of 8,100-11,700 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020

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