CH 9

Question 1: Score 0/4
Your response Exercise 9-1 Schedule of Expected Cash Collections [LO2] Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: April $ 300,000 May $ 500,000 June $ 200,000 Total $ 1,000,000
Correct response Exercise 9-1 Schedule of Expected Cash Collections [LO2] Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: April $ 300,000 May $ 500,000 June $ 200,000 Total $ 1,000,000
Budgeted sales (all on account)
Budgeted sales (all on account)
From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. Requirement 1: Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) February sales March sales April sales May sales June sales Total cash collections April $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%) May $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%) June $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%) Total $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%)
From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. Requirement 1: Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) February sales March sales April sales May sales June sales Total cash collections April 23,000 182,000 60,000 0 0 $ 265,000 $ May 0 26,000 210,000 100,000 0 $ 336,000 $ $ June 0 0 30,000 350,000 40,000 $ 420,000 Total 23,000 208,000 300,000 450,000 40,000 $ 1,021,000 $
Total grade: 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 + 0.01/24 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: April February sales: $230,000 10% March Sales: $260,000 70%, 10% April sales: $300,000 20%, 70%, 10% May sales: $500,000 20%, 70% June sales: $200,000 20% $ 23,000 $ 23,000 May June Total
182,000
$ 26,000
208,000
60,000
210,000
$ 30,000
300,000
100,000
350,000
450,000
40,000
40,000
Total cash collections
$ 265,000
$ 336,000
$ 420,000
$ 1,021,000
Observe that even though sales peak in May, cash collections peak in June. This occurs because the bulk of the company's customers pay in the month following sale. The lag in collections that this creates is even more pronounced in some companies. Indeed, it is not unusual for a company to have the least cash available in the months when sales are greatest.
Your response Requirement 2: Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. (Omit the "$" sign in your response.) Accounts receivable $ 1 (0%)
Correct response Requirement 2: Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. (Omit the "$" sign in your response.) Accounts receivable $ 210,000
Total grade: 0.01/1 = 0% Feedback: Accounts receivable at June 30: From May sales: $500,000 10% From June sales: $200,000 (70% + 10%) Total accounts receivable at June 30 $ 50,000 160,000 $ 210,000
Question 2: Score 0/4 Your response Exercise 9-2 Production Budget [LO3] Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units 50,000 75,000 90,000 80,000 Correct response Exercise 9-2 Production Budget [LO3] Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units 50,000 75,000 90,000 80,000
April May June July
April May June July
The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month's sales. The inventory at the end of March was 5,000 units. Required: Show the number of units to be produced each month and for the quarter in total. Required Production
The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month's sales. The inventory at the end of March was 5,000 units. Required: Show the number of units to be produced each month and for the quarter in total.
April May June Quarter
1 1 1 1
(0%) (0%) (0%) (0%)
April May June Quarter
Required Production 52,500 76,500 89,000 218,000
Total grade: 0.01/4 + 0.01/4 + 0.01/4 + 0.01/4 = 0% + 0% + 0% + 0% Feedback: Budgeted sales in units Add desired ending inventory* Total needs Less beginning inventory Required production April 50,000 7,500 57,500 5,000 52,500 May 75,000 9,000 84,000 7,500 76,500 June 90,000 8,000 98,000 9,000 89,000 Quarter 215,000 8,000 223,000 5,000 218,000
*10% of the following month's sales in units.
Question 3: Score 0/4 Your response Exercise 9-3 Direct Materials Budget [LO4] Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is 150 roubles per kilogram. (Siberia is located in Russia, whose currency is the rouble.) Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: First 60,000 Year 2 Second Third 90,000 150,000 Fourth 100,000 Year 3 First 70,000 Budgeted production, in bottles Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. At the bottom of your budget, show the amount of purchases in roubles for each quarter and for the year in total. (Input all amounts as positive values.) First 1 1 1 1 Second 1 (0%) 1 (0%) 1 (0%) 1 (0%) Year 2 Third 1 1 1 1 Correct response Exercise 9-3 Direct Materials Budget [LO4] Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is 150 roubles per kilogram. (Siberia is located in Russia, whose currency is the rouble.) Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Second Third 90,000 150,000 Year 3 First 70,000
Budgeted production, in bottles
First 60,000
Fourth 100,000
Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. At the bottom of your budget, show the amount of purchases in roubles for each quarter and for the year in total. (Input all amounts as positive values.) (0%) (0%) (0%) Production needsgrams (0%) Year 2 Third 450,000
Production needsgrams Less (0%) : desired ending inventorygrams Total needsgrams Add (0%) : beginning inventorygrams
(0%) (0%) (0%) (0%)
First 180,000
Second 270,000
Raw materials to be purchasedgrams Cost of raw materials to be purchased
1 (0%) 1 (0%)
1 (0%) 1 (0%)
1 (0%) 1 (0%) 1 (0%) Add : desired ending inventorygrams 1 (0%) 1 (0%) 1 (0%) Total needsgrams Less : beginning inventorygrams Raw materials to be purchasedgrams Cost of raw materials to be purchased
54,000 234,000 36,000 198,000 29,700
90,000 360,000 54,000 306,000 45,900
60,000 510,000 90,000 420,000 63,000
42,000 342,000 60,000 282,000
42,300
Total grade: 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: First Required production in bottles Number of grams per bottle Total production needsgrams 60,000 3 180,000 Year 2 Second 90,000 3 270,000 Third 150,000 3 450,000 Fourth 100,000 3 300,000 0 0 3 210,00 Year 3 First 70,00
Your response Exercise 9-4 Direct Labor Budget [LO5] The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 8,000 2nd Quarter 6,500 3rd Quarter 7,000 4th Quarter 7,500
Correct response Exercise 9-4 Direct Labor Budget [LO5] The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 8,000 2nd Quarter 6,500 3rd Quarter 7,000 4th Quarter 7,500
Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour. Requirement 1: Compute the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Omit the "$" sign in your response.) Total direct labor cost $ 1 (0%) $ 1 (0%) $ 1 (0%)
Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour. Requirement 1: Compute the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Omit the "$" sign in your response.) Total direct labor cost $ 33,600 $ 27,300
1st Quarter 2nd Quarter 3rd Quarter
1st Quarter 2nd Quarter
4th Quarter Year
$ 1 (0%) $ 1 (0%)
3rd Quarter 4th Quarter Year
$ 29,400 $ 31,500 $ 121,800
Total grade: 0.01/5 + 0.01/5 + 0.01/5 + 0.01/5 + 0.01/5 = 0% + 0% + 0% + 0% + 0% Feedback: Assuming that the direct labor workforce is adjusted each quarter, the direct labor budget is: 1st Quarter 8,000 0.35 2,800 $12.00 $ 33,600 2nd Quarter 6,500 0.35 2,275 $12.00 $ 27,300 3rd Quarter 7,000 0.35 2,450 $12.00 $ 29,400 4th Quarter 7,500 0.35 2,625 $12.00 $ 31,500 Year 29,000 0.35 10,150 $12.00 $ 121,800
Units to be produced Direct labor time per unit (hours) Total direct labor hours needed Direct labor cost per hour Total direct labor cost
Your response Requirement 2: Compute the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,600 hours anyway. Any hours worked in excess of 2,600 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Omit the "$" sign in your response.) Total direct labor cost $ 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%)
Correct response Requirement 2: Compute the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,600 hours anyway. Any hours worked in excess of 2,600 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Omit the "$" sign in your response.) Total direct labor cost $ 34,800 $ 31,200 $ 31,200 $ 31,650 $ 128,850
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Total grade: 0.01/5 + 0.01/5 + 0.01/5 + 0.01/5 + 0.01/5 = 0% + 0% + 0% + 0% + 0% Feedback: Assuming that the direct labor workforce is not adjusted each quarter and that overtime wages are paid, the direct labor budget is: 1st Quarter 8,000 0.35 2,800 2nd Quarter 6,500 0.35 2,275 3rd Quarter 7,000 0.35 2,450 4th Quarter 7,500 0.35 2,625 Year
Units to be produced Direct labor time per unit (hours) Total direct labor hours needed
Regular hours paid Overtime hours paid Wages for regular hours (@ $12.00 per hour) Overtime wages (@ 1.5 hours $12.00 per hour) Total direct labor cost
2,600 200 $ 31,200 3,600 $ 34,800
2,600 0 $ 31,200 0 $ 31,200
2,600 0 $ 31,200 0 $ 31,200
2,600 25 $ 31,200 450 $ 31,650
$ 124,800 4,050 $ 128,850
Your response Exercise 9-5 Manufacturing Overhead Budget [LO6] The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: Budgeted direct labor-hours 1st Quarter 8,000 2nd Quarter 8,200 3rd Quarter 8,500 4th Quarter 7,800
Correct response Exercise 9-5 Manufacturing Overhead Budget [LO6] The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: Budgeted direct labor-hours 1st Quarter 8,000 2nd Quarter 8,200 3rd Quarter 8,500 4th Quarter 7,800
The company's variable manufacturing overhead rate is $3.25 per direct labor-hour and the company's fixed manufacturing overhead is $48,000 per quarter. The only non cash item included in fixed manufacturing overhead is depreciation, which is $16,000 per quarter. Requirement 1: Compute the company's manufacturing overhead budget for the upcoming fiscal year. (Omit the "$" sign in your response.) Cash disbursements for manufacturing overhead $ 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%)
The company's variable manufacturing overhead rate is $3.25 per direct labor-hour and the company's fixed manufacturing overhead is $48,000 per quarter. The only non cash item included in fixed manufacturing overhead is depreciation, which is $16,000 per quarter. Requirement 1: Compute the company's manufacturing overhead budget for the upcoming fiscal year. (Omit the "$" sign in your response.) Cash disbursements for manufacturing overhead $ 58,000 $ 58,650 $ 59,625 $ 57,350 $ 233,625
Total grade: 0.01/5 + 0.01/5 + 0.01/5 + 0.01/5 + 0.01/5 = 0% + 0% + 0% + 0% + 0% Feedback: Yuvwell Corporation Manufacturing Overhead Budget 1st 2nd Quarter Quarter 8,000 8,200 $ 3.25 $ 3.25 $ 26,000 $ 26,650
Budgeted direct labor-hours Variable overhead rate Variable manufacturing overhead
3rd Quarter 8,500 $ 3.25 $ 27,625
4th Quarter 7,800 $ 3.25 $ 25,350
Year 32,500 $ 3.25 $ 105,625
Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead
48,000 74,000 16,000 $ 58,000
48,000 74,650 16,000 $ 58,650
48,000 75,625 16,000 $ 59,625
48,000 73,350 16,000 $ 57,350
192,000 297,625 64,000 $ 233,625
Your response Requirement 2: Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Manufacturing overhead rate for the year $ 1 (0%)
Correct response Requirement 2: Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Manufacturing overhead rate for the year $ 9.16
Total grade: 0.01/1 = 0% Feedback: Total budgeted manufacturing overhead for the year (a) Total budgeted direct labor-hours for the year (b) Manufacturing overhead rate for the year (a) (b) $ 297,625 32,500 $ 9.16
Your response Exercise 9-6 Selling and Administrative Expense Budget [LO7] The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: Budgeted unit sales 1st Quarter 15,000 2nd Quarter 16,000 3rd Quarter 14,000 4th Quarter 13,000
Correct response Exercise 9-6 Selling and Administrative Expense Budget [LO7] The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: Budgeted unit sales 1st Quarter 15,000 2nd Quarter 16,000 3rd Quarter 14,000 4th Quarter 13,000
The company's variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,000 will be paid in the second quarter.
The company's variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,000 will be paid in the second quarter.
Required: Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Input all amounts as positive Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Weller Company Selling and Administrative Expense Budget Weller Company Selling and Administrative Expense Budget
1st Quarter 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)
2nd Quarter 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)
3rd Quarter 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)
4th Year Quarter 1 (0%) Variable$expense 1 (0%) Fixed selling and administrative expenses: 1 (0%)Advertising 1 (0%) 1 (0%)Executive salaries 1 (0%) 1 (0%)Insurance 1 (0%) 1 (0%)Property taxes1 (0%) 1 (0%)Depreciation 1 (0%) Total fixed selling and administrative 1 (0%) 1 (0%) expenses 1 (0%) 1 (0%) Total selling and administrative expenses 1 (0%) Less depreciation 1 (0%) Cash disbursements for selling and 1 (0%) 1 (0%) $ administrative expenses
1st Quarter 37,500 8,000 35,000 5,000 0 20,000 68,000 105,500 20,000 $ 85,500 $
2nd Quarter 40,000 8,000 35,000 0 8,000 20,000 71,000 111,000 20,000 91,000 $
3rd Quarter 35,000 8,000 35,000 5,000 0 20,000 68,000 103,000 20,000 83,000 $
4th Quarter 32,500 8,000 35,000 0 0 20,000 63,000 95,500 20,000 75,500 $
Variable expense Fixed selling and administrative expenses: Advertising Executive salaries Insurance Property taxes Depreciation Total fixed selling and administrative expenses Total selling and administrative expenses Less depreciation Cash disbursements for selling and administrative expenses
Year 14
3 14 1
1 (0%) 1 (0%) 1 (0%) $ 1 (0%) $
1 (0%) 1 (0%) 1 (0%) 1 (0%) $
1 (0%) 1 (0%) 1 (0%) 1 (0%) $
27
41 8
33
Total grade: 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%
Feedback: 1st Quarter 15,000 $ 2.50 $ 37,500 2nd Quarter 16,000 $ 2.50 3rd Quarter 14,000 $ 2.50 $ 35,000 4th Quarter 13,000 $ 2.50 $ 32,500 $ Year 58,000 2.50
Budgeted unit sales Variable selling and administrative expense per unit Variable expense
$ 40,000
$ 145,000
Question 7: Score 0/4 Your response Exercise 9-7 Cash Budget [LO8] Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230,000 3rd Quarter $ 210,000 $ 220,000 4th Quarter $ 230,000 $ 240,000 Correct response Exercise 9-7 Cash Budget [LO8] Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230,000 3rd Quarter $ 210,000 $ 220,000 4th Quarter $ 230,000 $ 240,000
Total cash receipts Total cash disbursements
The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may
The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash
borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. (Show deficiencies, repayments, interest, and total financing preceded by a minus sign when appropriate. Enter all other amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Garden Depot Cash Budget 1st Quarter $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)
balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. (Show deficiencies, repayments, interest, and total financing preceded by a minus sign when appropriate. Enter all other amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) 4th Quarter $ Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Cash balance, beginning $ 20,000 $ 10,000 $ 35,800 $ 25,800 180,000 330,000 210,000 230,000 Total cash receipts 200,000 340,000 245,800 255,800 Total cash available 260,000 230,000 220,000 240,000 Less total cash disbursements -60,000 110,000 25,800 15,800 Excess (deficiency) of cash available over disbursements Financing: $ 70,000 0 0 0 Borrowings (at beginnings of quarters) 0 -70,000 0 0 Repayments (at ends of quarters) 0 -4,200 0 0 Interest 70,000 -74,200 0 0 Total financing Cash balance, ending $ 10,000 $ 35,800 $ 25,800 $ 15,800
Cash balance, beginning Total cash receipts Total cash available Less total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings (at beginnings of quarters) Repayments (at ends of quarters) Interest Total financing Cash balance, ending
2nd Quarter $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)
3rd Quarter $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)
Total grade: 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 + 0.01/50 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Borrowings (at beginnings of quarters): Since the deficiency of cash available over disbursements is $60,000, the company must borrow $70,000 to maintain the desired ending cash balance of $10,000. Interest: $70,000 3% 2 = $4,200.
Question 8: Score 0.28/4 Your response Exercise 9-8 Budgeted Income Statement [LO9] Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Correct response Exercise 9-8 Budgeted Income Statement [LO9] Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:
Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expenses (per unit) Fixed selling and administrative expenses (per year) Interest expense for the year
460 $ 1,950 $ 1,575 $ 75 $ 105,000 $ 14,000
Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expenses (per unit) Fixed selling and administrative expenses (per year) Interest expense for the year
460 $ 1,950 $ 1,575 $ 75 $ 105,000 $ 14,000
Required: Use the absorption costing income statement method, prepare the company's budgeted income statement. (Input all amounts as positive values. Omit the "$" sign in your response.) Gig Harbor Boating Budgeted Income Statement Interest expense (0%) Selling and administrative expenses (0%) Gross profit (7%) Notes payable (0%) Net operating loss (0%) Notes payable (0%) Net loss (0%) $ 1 1 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%) (0%) (0%)
Required: Use the absorption costing income statement method, prepare the company's budgeted income statement. (Input all amounts as positive values. Omit the "$" sign in your response.) Gig Harbor Boating Budgeted Income Statement Sales Cost of goods sold Gross profit Selling and administrative expenses Net operating income Interest expense Net income $ 897,000 724,500 172,500 139,500 33,000 14,000 19,000
Total grade: 0.01/14 + 0.01/14 + 0.01/14 + 0.01/14 + 1.01/14 + 0.01/14 + 0.01/14 + 0.01/14 + 0.01/14 + 0.01/14 + 0.01/14 + 0.01/14 + 0.01/14 + 0.01/14 = 0% + 0% + 0% + 0% + 7% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Sales (460 units $1,950 per unit) = $897,000 Cost of goods sold (460 units $1,575 per unit) = $724,500 Selling and administrative expenses (460 units $75 per unit) + $105,000 = $139,500.
Question 9: Score 0.38/4 Your response Exercise 9-9 Budgeted Balance Sheet [LO10] The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances ? $ 8,100 $ 3,200 $ 34,000 $ 16,000 $ 1,800 Correct response Exercise 9-9 Budgeted Balance Sheet [LO10] The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances ? $ 8,100 $ 3,200 $ 34,000 $ 16,000
Cash Accounts receivable Supplies inventory Equipment Accumulated depreciation Accounts payable
Cash Accounts receivable Supplies inventory Equipment Accumulated depreciation
Common stock Retained earnings
$ 5,000 ?
Accounts payable Common stock Retained earnings
$ 1,800 $ 5,000 ?
The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800. Required: Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) Mecca Copy Budgeted Balance Sheet Liabilities and Stockholders' Equity Current liabilities: Accounts payable (5%) Stockholders' equity: Supplies inventory (0%) 1 (0%) Equipment (0%) Total stockholders' equity
The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800. Required: Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) Mecca Copy Budgeted Balance Sheet Liabilities and Stockholders' Equity Current liabilities: Accounts payable Stockholders' equity: Common stock 23,500 Retained earnings Total stockholders' equity
Assets Current assets: Cash (5%) Common stock (0%) Retained earnings (0%) Total current assets Plant and equipment: Building (0%) Retained earnings (0%) Plant and equipment, net Total assets
1 (0%) 1 (0%) 1 (0%) $ 1 (0%) 1 (0%) $
1 (0%) 1 (0%)
Total liabilities and stockholders' equity
Assets Current assets: Cash Accounts receivable Supplies inventory Total current assets Plant and equipment: Equipment Accumulated depreciation Plant and equipment, net Total assets
12,200 8,100 3,200 $ 34,000 -16,000 $
18,000 41,500
Total liabilities and stockholders' equity
Total grade: 1.01/21 + 0.01/21 + 1.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 + 0.01/21 = 5% + 0% + 5% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Cash: Plug figure.
Retained earnings, beginning balance Add net income Deduct dividends Retained earnings, ending balance
$ 28,000 11,500 39,500 4,800 $ 34,700
Question 10: Score 0/4 Your response Correct response
Exercise 9-10 Cash Budget Analysis [LO8] A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. Fill in the missing amounts in the table. (Enter your answers in thousands of dollars. Show deficiencies, repayments, and total financing preceded by a minus sign when appropriate. Enter all other amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) 1 Cash balance, beginning Add collections from customers Total cash available Less disbursements: Purchases of inventory Operating expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest)* Total financing Cash balance, ending *Interest will total $1,000 for the year. $ 6 1 (0%) 71 35 1 (0%) 8 2 1 (0%) -2 1 1 1 $ 1 (0%) (0%) (0%) (0%)
Exercise 9-10 Cash Budget Analysis [LO8] A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. Fill in the missing amounts in the table. (Enter your answers in thousands of dollars. Show deficiencies, repayments, and total financing preceded by a minus sign when appropriate. Enter all other amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Quarter 1 $ 6 65 71 35 28 8 2 73 -2 7 0 7 5 $ 2 5 70 75 45 30 8 2 85 -10 15 0 15 5 $ 3 5 96 101 48 30 10 2 90 11 0 -6 -6 5
Quarter 2 3 4 Year Cash balance, beginning 1 (0%) from (0%) $ 1 (0%) $ 1 (0%) Add $ collections $ 1 customers 1 (0%) 1 (0%) 96 323 Total cash available 1 (0%) 1 (0%) 1 (0%) 1 (0%) Less disbursements: Purchases 1 (0%) of inventory 1 (0%) 45 35 1 (0%) 30 Operating 30 expenses 113 1 (0%) 8 10 purchases 36 Equipment 1 (0%) 2 2 2 Dividends 1 (0%) 1 (0%) 1 (0%) 85 Total disbursements 1 (0%) 1 (0%) 1 (0%) 11 Excess (deficiency) of cash available over disbursements 1 (0%) 1 (0%) 1 (0%) 15 Financing: Borrowings 1 (0%) 1 (0%) 1 (0%) -17 1 (0%) 1 (0%) (including 1 (0%) 1 (0%) Repayments interest)* 1 (0%) Total (0%) $ 1 (0%) $ 1 (0%) $ 1 financing Cash balance, ending *Interest will total $1,000 for the year.
Total grade: 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 + 0.01/42 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%
Your response Exercise 9-11 Production and Direct Materials Budgets [LO3, LO4] The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year: Budgeted unit sales 1st Quarter 8,000 2nd Quarter 7,000 3rd Quarter 6,000 4th Quarter 7,000
Correct response Exercise 9-11 Production and Direct Materials Budgets [LO3, LO4] The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year: Budgeted unit sales 1st Quarter 8,000 2nd Quarter 7,000 3rd Quarter 6,000 4th Quarter 7,000
The company expects to start the first quarter with 1,600 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished
The company expects to start the first quarter with 1,600 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished
goods inventory for the fourth quarter is 1,700 units. In addition, the beginning raw materials inventory for the first quarter is budgeted to be 3,120 pounds and the beginning accounts payable for the first quarter is budgeted to be $14,820. Each unit requires 2 pounds of raw material that costs $4.00 per pound. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 3,140 pounds. Management plans to pay for 75% of raw material purchases in the quarter acquired and 25% in the following quarter. Requirement 1: Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.) Gaeber Industries Production Budget 1st Quarter 2nd Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
goods inventory for the fourth quarter is 1,700 units. In addition, the beginning raw materials inventory for the first quarter is budgeted to be 3,120 pounds and the beginning accounts payable for the first quarter is budgeted to be $14,820. Each unit requires 2 pounds of raw material that costs $4.00 per pound. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 3,140 pounds. Management plans to pay for 75% of raw material purchases in the quarter acquired and 25% in the following quarter. Requirement 1: Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.) Gaeber Industries Production Budget 1st Quarter 2nd Quarter 8,000 7,000 1,400 1,200 9,400 8,200 1,600 1,400 7,800 6,800
Budgeted unit sales Add desired ending inventory Total units needed Less beginning inventory Required production
3rd Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
4th Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
3rd Quarter 6,000 1,400 7,400 1,200 6,200
4th Quarter 7,000 1,700 8,700 1,400 7,300
Total grade: 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%
Your response Requirement 2: (a) Prepare the company's direct materials budget. (Input all amounts as positive values. Omit the "$" sign in your response.) Gaeber Industries Direct Materials Budget 1st Quarter 2nd Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ $
Correct response Requirement 2: (a) Prepare the company's direct materials budget. (Input all amounts as positive values. Omit the "$" sign in your response.) Gaeber Industries Direct Materials Budget 1st Quarter 2nd Quarter 15,600 13,600 2,720 2,480 18,320 16,080 3,120 2,720 15,200 13,360 60,800 53,440 $ $
Production needs Add desired ending inventory Total needs Less beginning inventory Raw materials to be purchased Cost of raw materials to be purchased
3rd Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $
4th Quarter Year 1 (0%) 1 (0%) Production needs 1 (0%) 1 (0%) Add desired ending inventory (0%) 1 (0%) Total 1 needs (0%) inventory 1 (0%) Less 1 beginning 1 (0%) to be purchased 1 (0%) Raw materials 1 raw (0%) 1 purchased (0%) $ Cost of materials $ to be
3rd Quarter 12,400 2,920 15,320 2,480 12,840 51,360 $
4th Quarter 14,600 3,140 17,740 2,920 14,820 59,280 $
Total grade: 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: 1st Quarter 7,800 2 2nd Quarter 6,800 2 3rd Quarter 6,200 2 4th Quarter 7,300 2 Year 28,100 2
Required production Raw materials per unit
Production needs
15,600
13,600
12,400
14,600
56,200
Your response (b) Prepare the schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Gaeber Industries Schedule of Expected Cash Disbursements for Materials st 1 Quarter 2nd Quarter 3rd Quarter 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%) $ 1 (0%) $
Correct response (b) Prepare the schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Gaeber Industries Schedule of Expected Cash Disbursements for Materials st 1 Quarter 2nd Quarter 3rd Quarter 14,820 0 0 $ $ $ 45,600 15,200 0 0 40,080 13,360 0 0 38,520 0 0 0 60,420 55,280 51,880 $ $ $
Accounts payable, beginning balance 1st Quarter purchases 2nd Quarter purchases 3rd purchases 4th Quarter purchases Total cash disbursements for materials
4 Quarter Year 1 (0%) 1 (0%) Accounts payable, $ beginning balance 1 (0%) 1 (0%) 1st Quarter purchases 1 (0%) 1 (0%) 2nd Quarter purchases 1 (0%) 1 (0%) 3rd purchases 1 (0%) 1 (0%) 4th Quarter purchases (0%) 1 $ Total 1 cash disbursements $ for(0%) materials $
th
4th Quarter $ 0 0 0 12,840 44,460 57,300
Total grade: 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%
Your response Exercise 9-14 Direct Labor and Manufacturing Overhead Budgets [LO5, LO6] The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 12,000 2nd Quarter 14,000 3rd Quarter 13,000 4th Quarter 11,000
Correct response Exercise 9-14 Direct Labor and Manufacturing Overhead Budgets [LO5, LO6] The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 12,000 2nd Quarter 14,000 3rd Quarter 13,000 4th Quarter 11,000
Each unit requires 0.70 direct labor-hours, and direct labor-hour workers are paid $10.50 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $22,000 per quarter. Requirement 1: Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Omit the "$" sign in your response.) Raredon Corporation Direct Labor Budget 1st quarter 2nd quarter
Each unit requires 0.70 direct labor-hours, and direct labor-hour workers are paid $10.50 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $22,000 per quarter. Requirement 1: Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Omit the "$" sign in your response.) Raredon Corporation Direct Labor Budget 1st quarter 2nd quarter
3rd quarter
4th quarter
3rd quarter
4th quarter
Total direct labor-hours needed Total direct labor cost
1 (0%) 1 (0%)
1 (0%) 1 (0%)
1 (0%) 1 (0%)
1 (0%) 1 (0%) needed Total direct labor-hours 1 (0%) 1 (0%) Total $ direct labor cost
8,400 88,200
9,800 102,900
9,100 95,550
7,700 80,850
35,000 367,500
Total grade: 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Raredon Corporation Direct Labor Budget 1st quarter 12,000 0.70 8,400 $ 10.50 $ 88,200
Units to be produced Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost
3rd 2nd quarter quarter 14,000 13,000 0.70 0.70 9,800 9,100 $ 10.50 $ 10.50 $ 102,900 $ 95,550
4th quarter 11,000 0.70 7,700 $ 10.50 $ 80,850
Year 50,000 0.70 35,000 $ 10.50 $ 367,500
Your response Requirement 2: Prepare the company's manufacturing overhead budget. (Omit the "$" sign in your response.) Raredon Corporation Manufacturing Overhead Budget 1st quarter 2nd quarter 1 (0%) 1 (0%) $ $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%) $ 1 (0%)
Correct response Requirement 2: Prepare the company's manufacturing overhead budget. (Omit the "$" sign in your response.) Raredon Corporation Manufacturing Overhead Budget 1st quarter 2nd quarter 12,600 14,700 $ $ 80,000 80,000 92,600 94,700 $ 70,600 $ 72,700
Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Cash disbursements for manufacturing overhead
3rd quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%)
4th quarter Year 1 Variable (0%) manufacturing 1 (0%) $ overhead 1 Fixed (0%) manufacturing 1 (0%) overhead 1 Total (0%) manufacturing 1 (0%) overhead Cash disbursements for 1 (0%) 1overhead (0%) $ manufacturing $ $
3rd quarter 13,650 80,000 93,650 71,650
4th quarter 11,550 80,000 91,550 69,550
Year 52,50 320,00 372,50
284,50
Total grade: 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Raredon Corporation Manufacturing Overhead Budget 1st 2nd quarter quarter 8,400 9,800 $ 1.50 $ 1.50 $ 12,600 $ 14,700 80,600 80,000 92,600 94,700 22,000 22,000 $ 70,600 $ 72,700
Budgeted direct labor-hours Variable overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for
3rd quarter 9,100 $ 1.50 $ 13,650 80,000 93,650 22,000 $ 71,650
4th quarter 7,700 $ 1.50 $ 11,550 80,000 91,550 22,000 $ 69,550
Year 35,000 $ 1.50 $ 52,500 320,000 372,500 88,000 $ 284,500
manufacturing overhead
Your response Exercise 9-12 Sales and Production Budgets [LO2, LO3] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): Budgeted unit sales 1st Quarter 11,000 2nd Quarter 12,000 3rd Quarter 14,000 4th Quarter 13,000
Correct response Exercise 9-12 Sales and Production Budgets [LO2, LO3] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): Budgeted unit sales 1st Quarter 11,000 2nd Quarter 12,000 3rd Quarter 14,000 4th Quarter 13,000
The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. Requirement 1: (a) Calculate the company's total sales. (Omit the "$" sign in your response.) Total sales 1st Quarter $ 1 (0%) 2nd Quarter $ 1 (0%) 3rd Quarter $ 1 (0%) 4th Quarter 1 (0%) $
The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. Requirement 1: (a) Calculate the company's total sales. (Omit the "$" sign in your response.) Total sales 1st Quarter $ 198,000 2nd Quarter $ 216,000 3rd Quarter $ 252,000 4th Quarter 234,000 $
Total grade: 0.01/5 + 0.01/5 + 0.01/5 + 0.01/5 + 0.01/5 = 0% + 0% + 0% + 0% + 0% Feedback: Jessi Corporation Sales Budget 1st 2nd Quarter Quarter 11,000 12,000 $18.00 $18.00 $ 198,000 $ 216,000
Budgeted unit sales Selling price per unit Total sales
3rd Quarter 14,000 $18.00 $ 252,000
4th Quarter 13,000 $18.00 $ 234,000
Year 50,000 $18.00 $ 900,000
Your response
Correct response
(b) Prepare the schedule of expected cash collections. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Jessi Corporation Schedule of Expected Cash Collections st 1 Quarter 2nd Quarter 1 (0%) $ 1 (0%) $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%) $
(b) Prepare the schedule of expected cash collections. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Jessi Corporation Schedule of Expected Cash Collections st 1 Quarter 2nd Quarter 70,200 $ 0 $ 128,700 59,400 0 140,400 0 0 0 0 198,900 $ 199,800 $
Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections
3 Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ $
rd
4 Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ $
th
Year Accounts $ 1 (0%) receivable, beginning balance 1 (0%) 1st Quarter sales 1 (0%) 2nd Quarter sales rd 1 (0%) 3 Quarter sales 1 (0%) 4th Quarter sales (0%) Total $ 1 cash collections
3rd Quarter $ 0 0 64,800 163,800 0 228,600 $
4th Quarter 0 0 0 75,600 152,100 227,700
Year $ 70,200 188,100 205,200 239,400 152,100 $ 855,000
Total grade: 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 + 0.01/30 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%
Your response Requirement 2: Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.) Jessi Corporation Production Budget 1st Quarter 2nd Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
Correct response Requirement 2: Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.) Jessi Corporation Production Budget 1st Quarter 2nd Quarter 11,000 12,000 1,800 2,100 12,800 14,100 1,650 1,800 11,150 12,300
3rd Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
4th Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
Year 1 (0%) Budgeted unit sales 1desired (0%) ending inventory Add 1 units (0%)needed Total 1 beginning (0%) Less inventory 1 (0%) Required production
3rd Quarter 14,000 1,950 15,950 2,100 13,850
4th Quarter 13,000 1,850 14,850 1,950 12,900
Year 50,000 1,850 51,850 1,650 50,200
Total grade: 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 + 0.01/25 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%
Question 14: Score 0/4 Your response Exercise 10-1 Prepare a Flexible Budget [LO1] 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 Correct response Exercise 10-1 Prepare a Flexible Budget [LO1] 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
Budgeted diving-hours (q) Revenue ($365.00q) Expenses: Wages and salaries ($8,000 + $125.00q) Supplies ($3.00q) Equipment rental ($1,800 + $32.00q) Insurance ($3,400) Miscellaneous ($630 + $1.80q) Total expense Net operating income
100 $ 36,500 20,500 300 5,000 3,400 810 30,010 $ 6,490
Required: During May, the company's activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity. (Input all amounts as positive values. Omit the "$" sign in your response.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income $ 1 (0%) 1 1 1 1 1 1 $ 1 (0%) (0%) (0%) (0%) (0%) (0%) (0%)
For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($365.00q) Expenses: Wages and salaries ($8,000 + $125.00q) Supplies ($3.00q) Equipment rental ($1,800 + $32.00q) Insurance ($3,400) Miscellaneous ($630 + $1.80q) Total expense Net operating income
100 $ 36,500 20,500 300 5,000 3,400 810 30,010 $ 6,490
Required: During May, the company's activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity. (Input all amounts as positive values. Omit the "$" sign in your response.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income $ 38,325 21,125 315 5,160 3,400 819 30,819 $ 7,506
Total grade: 0.01/8 + 0.01/8 + 0.01/8 + 0.01/8 + 0.01/8 + 0.01/8 + 0.01/8 + 0.01/8 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Revenue ($365.00 105) = $38,325 Wages and salaries ($8,000 + ($125.00 105)) = $21,125 Supplies ($3.00 105) = $315 Equipment rental ($1,800 + ($32.00 105)) = $5,160 Miscellaneous ($630 + ($1.80 105)) = $819
Question 15: Score 1.33/4 Your response Correct response
Exercise 10-2 Prepare a Report Showing Activity Variances [LO2] Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50q) Expenses: Raw materials ($2.40q) Wages and salaries ($5,200 + $0.30q) Utilities ($2,400 + $0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.10q) Total expense Net operating income
Exercise 10-2 Prepare a Report Showing Activity Variances [LO2] Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50q) Expenses: Raw materials ($2.40q) Wages and salaries ($5,200 + $0.30q) Utilities ($2,400 + $0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.10q) Total expense Net operating income
18,000 $ 81,000 43,200 10,600 3,300 4,300 2,300 2,480 66,180 $ 14,820
18,000 $ 81,000 43,200 10,600 3,300 4,300 2,300 2,480 66,180 $ 14,820
In July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50q) Expenses: Raw materials ($2.40q) Wages and salaries ($5,200 + $0.30q) Utilities ($2,400 + $0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.10q) Total expense Net operating income In July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below: 17,800 $ 80,100 42,720 10,540 3,290 4,300 2,300 2,460 65,610 $ 14,490 Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50q) Expenses: Raw materials ($2.40q) Wages and salaries ($5,200 + $0.30q) Utilities ($2,400 + $0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.10q) Total expense Net operating income
17,800 $ 80,100 42,720 10,540 3,290 4,300 2,300 2,460 65,610 $ 14,490
Required: Prepare a report showing the company's activity variances for July. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Flight Caf Activity Variances For the Month Ended July 31 Activity Variances 1 (0%) U (6%) $ 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%) F (6%) None (0%) None (0%) None (6%) None (6%)
Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance
Required: Prepare a report showing the company's activity variances for July. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Flight Caf Activity Variances For the Month Ended July 31 Activity Variances 900 U $
Revenue
Miscellaneous Total expense Net operating income
1 (0%) F (6%) 1 (0%) U (0%) 1 (0%) U (6%)
Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income $
480 60 10 0 0 20
F F F None None F
570 F 330 U
Total grade: 0.01/18 + 1.01/18 + 0.01/18 + 1.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 1.01/18 + 0.01/18 + 1.01/18 + 0.01/18 + 1.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 1.01/18 = 0% + 6% + 0% + 6% + 0% + 0% + 0% + 0% + 0% + 6% + 0% + 6% + 0% + 6% + 0% + 0% + 0% + 6% Feedback: Flight Caf Activity Variances For the Month Ended July 31 Planning Flexible Budget Budget 18,000 17,800 $ 81,000 $ 80,100 43,200 10,600 3,300 4,300 2,300 2,480 66,180 $ 14,820 42,720 10,540 3,290 4,300 2,300 2,460 65,610 $ 14,490
Activity Variances $ 900 U 480 60 10 0 0 20 570 $ 330 F F F None None F F U
Meals Revenue ($4.50q) Expenses: Raw materials ($2.40q) Wages and salaries ($5,200 + $0.30q) Utilities ($2,400 + $0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.10q) Total expense Net operating income
Question 16: Score 0.88/4 Your response Exercise 10-3 Prepare a Report Showing Revenue and Spending Variances [LO3] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) Revenue ($4.00q) Expenses: Correct response Exercise 10-3 Prepare a Report Showing Revenue and Spending Variances [LO3] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) Revenue ($4.00q)
8,000 $ 32,000
8,000 $ 32,000
Packing supplies ($0.50q) Oyster bed maintenance ($3,200) Wages and salaries ($2,900 +$0.30q) Shipping ($0.80q) Utilities ($830) Other ($450 + $0.05q) Total expense Net operating income
4,000 3,200 5,300 6,400 830 850 20,580 $ 11,420
Expenses: Packing supplies ($0.50q) Oyster bed maintenance ($3,200) Wages and salaries ($2,900 +$0.30q) Shipping ($0.80q) Utilities ($830) Other ($450 + $0.05q) Total expense Net operating income
4,000 3,200 5,300 6,400 830 850 20,580 $ 11,420
The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 8,000 $ 35,200 4,200 3,100 5,640 6,950 810 980 21,680 $ 13,520 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 8,000 $ 35,200 4,200 3,100 5,640 6,950 810 980 21,680 $ 13,520
Required: Prepare a report showing the company's revenue and spending variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue and Spending Variances 1 (0%) F (6%) $ 1 1 1 1 1 1 1 1 (0%) F (0%) (0%) U (0%) (0%) None (0%) (0%) F (0%) (0%) None (0%) (0%) U (6%) (0%) U (6%) (0%) F (6%)
Required: Prepare a report showing the company's revenue and spending variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue and Spending Variances 3,200 F $ 200 100 340 550 20 130 U F U U F U
Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income
Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other
Total expense Net operating income
1,100 U 2,100 F
Total grade: 0.01/18 + 1.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 1.01/18 + 0.01/18 + 1.01/18 + 0.01/18 + 1.01/18 = 0% + 6% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 6% + 0% + 6% + 0% + 6% Feedback: Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Flexible Actual Budget Result 8,000 8,000 $ 32,000 $ 35,200 4,000 3,200 5,300 6,400 830 850 20,580 $ 11,420 4,200 3,100 5,640 6,950 810 980 21,680 $ 13,520
Revenue and Spending Variances $ 3,200 F 200 100 340 550 20 130 1,100 $ 2,100 U F U U F U U F
Pounds Revenue ($4.00q) Expenses: Packing supplies ($0.50q) Oyster bed maintenance ($3,200) Wages and salaries ($2,900 + $0.30q) Shipping ($0.80q) Utilities ($830) Other ($450 + $0.05q) Total expense Net operating income
Question 17: Score 0.5/4 Your response Exercise 10-4 Prepare a Flexible Budget Performance Report [LO4] Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget 50 $ 16,000 8,100 1,150 2,550 350 290 12,440 Correct response Exercise 10-4 Prepare a Flexible Budget Performance Report [LO4] Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget 50 $ 16,000 8,100 1,150 2,550 350
Flights (q) Revenue ($320.00q) Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q) Office expenses ($190 + $2.00q) Total expense
Flexible Budget 48 $ 15,360 7,936 1,104 2,474 336 286 12,136
Actual Budget 48 $ 13,650 8,430 1,260 2,350 336 460 12,836
Flights (q) Revenue ($320.00q) Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q)
Flexible Budget 48 $ 15,360 7,936 1,104 2,474 336
Actual Budget 48 $ 13,650 8,430 1,260 2,350 336
Net operating income
3,560
$ 3,224
814
The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: Prepare a flexible budget performance report for July. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Activity Variances 1 (0%) None (0%) $ 1 1 1 1 1 1 1 (0%) U (0%) (0%) U (0%) (0%) F (3%) (0%) U (0%) (0%) F (3%) (0%) U (0%) (0%) U (3%)
Office expenses ($190 + $2.00q) Total expense Net operating income
290 12,440 $ 3,560
286 12,136 $ 3,224
460 12,836 $ 814
The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: Prepare a flexible budget performance report for July. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Activity Variances 640 U $ 164 46 76 14 4 304 336 F F F F F F U
Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income
Revenue and Spending Variances 1 (0%) None (0%) 1 1 1 1 1 1 1 (0%) None (0%) (0%) U (3%) (0%) U (0%) (0%) U (0%) (0%) None (0%) (0%) F (0%) (0%) F (0%)
Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income
Revenue and Spending Variances 1,710 U 494 156 124 0 174 700 2,410 U U F None U U U
Total grade: 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 1.01/32 + 0.01/32 + 1.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 1.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 0.01/32 + 1.01/32 + 0.01/32 + 0.01/32 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 3% + 0% + 3% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 3% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 3% + 0% + 0% Feedback: Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Planning Budget 50 $ 16,000 Activity Variances $ 640 U Flexible Budget 48 $ 15,360 Revenue and Spending Variances $ 1,710 U Actual Results 48 $ 13,650
Flights (q) Revenue ($320.00q) Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q)
8,100 1,150 2,550 350
164 46 76 14
F F F F
7,936 1,104 2,474 336
494 156 124 0
U U F None
8,430 1,260 2,350 336
Office expenses ($190 + $2.00q) Total expense Net operating income
290 12,440 $ 3,560
4 F 304 F $ 336 U
286 12,136 $ 3,224
174 U 700 U $ 2,410 U
460 12,836 $ 814
Question 18: Score 0/4 Your response Correct response Exercise 10-5 Prepare a Flexible Budget with More Than One Cost Driver [LO5] Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat 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: Fixed Cost Per Month $ 5,200 $ 1,700 $ 4,300 $ 2,900 Cost per Cruise $ 480.00 $ 24.00 Cost per Passenger $ 2.00 $ 1.00
Exercise 10-5 Prepare a Flexible Budget with More Than One Cost Driver [LO5] Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat 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: Fixed Cost Per Month $ 5,200 $ 1,700 $ 4,300 $ 2,900 Cost per Cruise $ 480.00 $ 24.00 Cost per Passenger $2.00 $1.00
Vessel operating costs Advertising Administrative costs Insurance
Vessel operating costs Advertising Administrative costs Insurance
For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's sales should average $25 per passenger. The company's planning budget for July is based on 24 cruises and 1,400 passengers. Required: Prepare the company's planning budget for July. (Input all amounts as positive values. Omit the "$" sign in your response.) Alyeski Tours Planning Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income $ 1 (0%) 1 1 1 1 1 $ 1 (0%) (0%) (0%) (0%) (0%) (0%)
For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's sales should average $25 per passenger. The company's planning budget for July is based on 24 cruises and 1,400 passengers. Required: Prepare the company's planning budget for July. (Input all amounts as positive values. Omit the "$" sign in your response.) Alyeski Tours Planning Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income $ 35,000 19,520 1,700 6,276 2,900 30,396 $ 4,604
Total grade: 0.01/7 + 0.01/7 + 0.01/7 + 0.01/7 + 0.01/7 + 0.01/7 + 0.01/7 = 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback:
Revenue ($25.00 1,400) = $35,000 Vessel operating costs ($5,200 + ($480.00 24) + ($2.00 1,400)) = $19,520 Administrative costs ($4,300 + ($24.00 24) + ($1.00 1,400)) = $6,276
Question 19: Score 0/4 Your response Correct response Exercise 10-8 Flexible Budget [LO1] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ $ $ $ 5,000 6,000 8,000 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30
Exercise 10-8 Flexible Budget [LO1] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30
$ 0.10
$ 0.10
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's planning budget for August. (Input all amounts as positive values. Omit the "$" sign in your response.) Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ 1 (0%) 1 1 1 1 1 1 1 1 $ 1 (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%)
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's planning budget for August. (Input all amounts as positive values. Omit the "$" sign in your response.) Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ 44,100 7,200 2,550 1,800 7,700 6,000 8,000 4,900 38,150 $ 5,950
Total grade: 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Revenue ($4.90 9,000) = $44,100 Cleaning supplies ($0.80 9,000) = $7,200 Electricity ($1,200 + ($0.15 9,000)) = $2,550 Maintenance ($0.20 9,000) = $1,800 Wages and salaries ($5,000 + ($0.30 9,000)) = $7,700 Administrative expenses ($4,000 + ($0.10 9,000)) = $4,900
Question 20: Score 0/4 Your response Exercise 10-9 Flexible Budget [LO1] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 Correct response Exercise 10-9 Flexible Budget [LO1] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ $ $ $ 5,000 6,000 8,000 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30
$ 0.10
$ 0.10
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's flexible budget for August. (Input all amounts as positive values. Omit the "$" sign in your response.) Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ 1 (0%) 1 1 1 1 1 1 1 1 $ 1 (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's flexible budget for August. (Input all amounts as positive values. Omit the "$" sign in your response.) Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent $ 43,120 7,040 2,520 1,760 7,640 6,000 8,000
Administrative expenses Total expense Net operating income
4,880 37,840 $ 5,280
Total grade: 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 + 0.01/10 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Revenue ($4.90 8,800) = $43,120 Cleaning supplies ($0.80 8,800) = $7,040 Electricity ($1,200 + ($0.15 8,800)) = $2,520 Maintenance ($0.20 8,800) = $1,760 Wages and salaries ($5,000 + ($0.30 8,800)) = $7,640 Administrative expenses ($4,000 + ($0.10 8,800)) = $4,880
Question 21: Score 0.4/4 Your response Exercise 10-10 Prepare a Report Showing Activity Variances [LO2] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 Correct response Exercise 10-10 Prepare a Report Showing Activity Variances [LO2] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ $ $ $ 5,000 6,000 8,000 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30
$ 0.10
$ 0.10
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The actual operating results for August appears below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The actual operating results for August appears below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity
8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000
8,800 $ 43,080 7,560 2,670
Administrative expenses Total expense Net operating income
4,950 39,940 $ 3,140
Required: Prepare a report showing the company's activity variances for August. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ Activity Variances 1 (0%) U (5%) 1 1 1 1 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) None (0%) None (0%) U (0%) U (0%) F (0%) U (0%) U (0%) U (0%) U (5%)
Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140
Required: Prepare a report showing the company's activity variances for August. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Lavage Rapide Activity Variances For the Month Ended August 31 Activity Variances 980 U $ 160 30 40 60 0 0 20 $ F F F F None None F
Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
310 F 670 U
Total grade: 0.01/20 + 1.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 1.01/20 = 0% + 5% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 5% Feedback: Lavage Rapide Activity Variances For the Month Ended August 31 Planning Flexible Budget Budget 9,000 8,800 $ 44,100 $ 43,120 7,200 2,550 1,800 7,700 7,040 2,520 1,760 7,640
Activity Variances $ 980 U 160 30 40 60 F F F F
Cars washed (q) Revenue ($4.90q) Expenses: Cleaning supplies ($0.80q) Electricity ($1,200 + $0.15q) Maintenance ($0.20q) Wages and salaries ($5,000 + $0.30q)
Depreciation ($6,000) Rent ($8,000) Administrative expenses ($4,000 + $0.10q) Total expense Net operating income
6,000 8,000 4,900 38,150 $ 5,950
6,000 8,000 4,880 37,840 $ 5,280
0 None 0 None 20 F 310 F $ 670 U
Question 22: Score 0.8/4 Your response Exercise 10-11 Prepare a Report Showing Revenue and Spending Variances [LO3] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 Correct response Exercise 10-11 Prepare a Report Showing Revenue and Spending Variances [LO3] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ $ $ $ 5,000 6,000 8,000 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30
$ 0.10
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The actual operating results for August appears below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
$ 0.10
8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140
8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140
Required: Prepare a report showing the company's revenue and spending variances for August. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue and Spending Variances 1 (0%) U (5%) $ 1 1 1 1 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) F (0%) None (0%) U (5%) None (0%) F (0%) None (5%) None (0%) U (5%) F (0%)
Required: Prepare a report showing the company's revenue and spending variances for August. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue and Spending Variances 40 U $ 520 150 500 860 0 0 70 $ U U U U None None U
2,100 U 2,140 U
Total grade: 0.01/20 + 1.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 1.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 1.01/20 + 0.01/20 + 0.01/20 + 0.01/20 + 1.01/20 + 0.01/20 + 0.01/20 = 0% + 5% + 0% + 0% + 0% + 0% + 0% + 5% + 0% + 0% + 0% + 0% + 0% + 5% + 0% + 0% + 0% + 5% + 0% + 0% Feedback: Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Flexible Actual Budget Results 8,800 8,800 $ 43,120 $ 43,080 7,040 2,520 1,760 7,640 6,000 8,000 4,880 37,840 $ 5,280 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140
Revenue and Spending Variances $ 40 U 520 U 150 U 500 U 860 U 0 None 0 None 70 U 2,100 U $ 2,140 U
Cars washed (q) Revenue ($4.90q) Expenses: Cleaning supplies ($0.80q) Electricity ($1,200 + $0.15q) Maintenance ($0.20q) Wages and salaries ($5,000 + $0.30q) Depreciation ($6,000) Rent ($8,000) Administrative expenses ($4,000 + $0.10q) Total expense Net operating income
Question 23: Score 1/4 Your response Exercise 10-12 Prepare a Flexible Budget Performance Report [LO4] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 Correct response Exercise 10-12 Prepare a Flexible Budget Performance Report [LO4] Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ $ $ $ 5,000 6,000 8,000 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30
$ 0.10
$ 0.10
8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140
8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140
Required: Prepare a flexible budget performance report that shows the company's activity variances and revenue and spending variances for August. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Activity Variances 1 (0%) F (0%) $
Revenue Expenses:
Required: Prepare a flexible budget performance report that shows the company's activity variances and revenue and spending variances for August. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., Revenue and Spending Variances zero variance). Omit the "$" sign in your response.) 1 (0%) F (0%) $
Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
1 1 1 1 1 1 1 1 1
(0%) F (3%) (0%) F (3%) (0%) U (0%) (0%) F (3%) (0%) F (0%) (0%) None (3%) (0%) F (3%) (0%) None (0%) (0%) U (3%)
1 1 1 1 1 1 1 1 1
(0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%)
U (3%) U (3%) None (0%) U (3%) U (0%) F (0%) U (3%) None (0%) None (0%)
Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Activity Variances 980 U $ 160 30 40 60 0 0 20 310 670 F F F F None None F F U
Revenue and Spending Variances 40 U 520 150 500 860 0 0 70 2,100 2,140 U U U U None None U U U
Total grade: 0.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 0.01/40 + 1.01/40 + 0.01/40 + 0.01/40 = 0% + 0% + 0% + 0% + 0% + 3% + 0% + 3% + 0% + 3% + 0% + 3% + 0% + 0% + 0% + 0% + 0% + 3% + 0% + 3% + 0% + 0% + 0% + 0% + 0% + 3% + 0% + 0% + 0% + 3% + 0% + 3% + 0% + 0% + 0% + 0% + 0% + 3% + 0% + 0% Feedback: Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Planning Budget 9,000 $ 44,100 7,200 2,550 1,800 7,700 6,000 8,000 4,900 38,150 $ 5,950 Activity Variances $ 980 U 160 F 30 F 40 F 60 F 0 None 0 None 20 F 310 F $ 670 U Flexible Budget 8,800 $ 43,120 7,040 2,520 1,760 7,640 6,000 8,000 4,880 37,840 $ 5,280 Revenue and Spending Variances $ 40 U 520 U 150 U 500 U 860 U 0 None 0 None 70 U 2,100 U $ 2,140 U Actual Results 8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140
Cars washed (q) Revenue ($4.90q) Expenses: Cleaning supplies ($0.80q) Electricity ($1,200 + $0.15q) Maintenance ($0.20q) Wages and salaries ($5,000 + $0.30q) Depreciation ($6,000) Rent ($8,000) Administrative expenses ($4,000 + $0.10q) Total expense Net operating income
Your response
Correct response Exercise 10-13 Flexible Budget [LO1] Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:
Exercise 10-13 Flexible Budget [LO1] Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs: Fixed Cost Per Month Direct materials Direct labor Supplies Utilities Depreciation Insurance $ 36,800 $ 1,400 $ 16,700 $ 12,700 $ 0.30 $ 0.05 Cost per Machine-Hour $ 4.25 Direct materials Direct labor Supplies Utilities Depreciation Insurance
Fixed Cost Per Month $ 36,800 $ 1,400 $ 16,700 $ 12,700
Cost per Machine-Hour $ 4.25 $ 0.30 $ 0.05
For example, utilities should be $1,400 per month plus $0.05 per machine-hour. The company expects to work 5,000 machinehours in June. Note that the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for manufacturing costs for June. (Omit the "$" sign in your response.) Wyckam Manufacturing Inc. Planning Budget for Manufacturing Cost For the Month Ended June 30 Direct materials $ Direct labor Supplies Utilities Depreciation Insurance Total manufacturing cost $
For example, utilities should be $1,400 per month plus $0.05 per machine-hour. The company expects to work 5,000 machinehours in June. Note that the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for manufacturing costs for June. (Omit the "$" sign in your response.) Wyckam Manufacturing Inc. Planning Budget for Manufacturing Cost For the Month Ended June 30 Direct materials $ Direct labor Supplies Utilities Depreciation Insurance Total manufacturing cost $
1 1 1 1 1 1 1
(0%) (0%) (0%) (0%) (0%) (0%) (0%)
21,250 36,800 1,500 1,650 16,700 12,700 90,600
Total grade: 0.01/7 + 0.01/7 + 0.01/7 + 0.01/7 + 0.01/7 + 0.01/7 + 0.01/7 = 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback: Direct materials ($4.25 5,000) = $21,250 Supplies ($0.30 5,000) = 1,500 Utilities ($1,400 + ($0.05 5,000)) = 1,650
Question 25: Score 0.88/4 Your response Correct response
Exercise 10-14 Flexible Budgets and Activity Variances [LO1, LO2] Jake's Roof Repair has provided the following data concerning its costs: Exercise 10-14 Flexible Budgets and Activity Variances [LO1, LO2] Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Per Month $ 23,200 $ $ $ $ 1,600 6,400 3,480 4,500 Cost per Repair-Hour $ 16.30 $ 8.60 $ 0.40 $ 1.70 $ 0.80 For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repairhours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour. Required: Prepare a report showing the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue 1 1 1 1 1 1 1 1 (0%) F (0%) (0%) U (6%) (0%) None (0%) (0%) U (6%) (0%) U (0%) (0%) F (0%) (0%) None (0%) (0%) F (6%) Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income $ $ Activity Variances 4,450 F 1,630 860 40 170 0 80 2,780 U U U U None U U Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Fixed Cost Per Month $ 23,200 $ $ $ $ 1,600 6,400 3,480 4,500 Cost per Repair-Hour $ 16.30 $ 8.60 $ 0.40 $ 1.70 $ 0.80
Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses
For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repairhours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour. Required: Prepare a report showing the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income $ Activity Variances 1 (0%) F (6%)
1,670 F
Total grade: 0.01/18 + 1.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 1.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 1.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 0.01/18 + 1.01/18 = 0% + 6% + 0% + 0% + 0% + 6% + 0% + 0% + 0% + 6% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 6% Feedback: Jake's Roof Repair Activity Variances For the Month Ended May 31 Planning Flexible Budget Budget
Activity Variances
Repair-hours (q) Revenue ($44.50q) Expenses: Wages and salaries ($23,200 + $16.30q) Parts and supplies ($8.60q) Equipment depreciation ($1,600 + $0.40q) Truck operating expenses ($6,400 + $1.70q) Rent ($3,480) Administrative expenses ($4,500 + $0.80q) Total expense Net operating income $
2,800 $ 124,600
2,900 $ 129,050 $ 4,450 F
68,840 24,080 2,720 11,160 3,480 6,740 117,020 7,580 $
70,470 24,940 2,760 11,330 3,480 6,820 119,800 9,250
1,630 U 860 U 40 U 170 U 0 None 80 U 2,780 U $ 1,670 F

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Question 1: Score 0/4

Budgeted sales (all on account)

Budgeted sales (all on account)

Total cash collections

April May June July

April May June July

April May June Quarter

(0%) (0%) (0%) (0%)

April May June Quarter

Required Production 52,500 76,500 89,000 218,000

*10% of the following month's sales in units.

Budgeted production, in bottles

(0%) (0%) (0%) (0%)

Raw materials to be purchasedgrams Cost of raw materials to be purchased

54,000 234,000 36,000 198,000 29,700

90,000 360,000 54,000 306,000 45,900

60,000 510,000 90,000 420,000 63,000

42,000 342,000 60,000 282,000

Question 4: Score 0/4

1st Quarter 2nd Quarter 3rd Quarter

1st Quarter 2nd Quarter

4th Quarter Year

3rd Quarter 4th Quarter Year

$ 29,400 $ 31,500 $ 121,800

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

2,600 200 $ 31,200 3,600 $ 34,800

2,600 0 $ 31,200 0 $ 31,200

2,600 0 $ 31,200 0 $ 31,200

2,600 25 $ 31,200 450 $ 31,650

$ 124,800 4,050 $ 128,850

Question 5: Score 0/4

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Budgeted direct labor-hours Variable overhead rate Variable manufacturing overhead

3rd Quarter 8,500 $ 3.25 $ 27,625

4th Quarter 7,800 $ 3.25 $ 25,350

Year 32,500 $ 3.25 $ 105,625

48,000 74,000 16,000 $ 58,000

48,000 74,650 16,000 $ 58,650

48,000 75,625 16,000 $ 59,625

48,000 73,350 16,000 $ 57,350

192,000 297,625 64,000 $ 233,625

Question 6: Score 0/4

1st Quarter 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)

2nd Quarter 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)

3rd Quarter 1 (0%) 1 1 1 1 1 (0%) (0%) (0%) (0%) (0%)

1 (0%) 1 (0%) 1 (0%) $ 1 (0%) $

1 (0%) 1 (0%) 1 (0%) 1 (0%) $

1 (0%) 1 (0%) 1 (0%) 1 (0%) $

Total cash receipts Total cash disbursements

460 $ 1,950 $ 1,575 $ 75 $ 105,000 $ 14,000

460 $ 1,950 $ 1,575 $ 75 $ 105,000 $ 14,000

Cash Accounts receivable Supplies inventory Equipment Accumulated depreciation

Common stock Retained earnings

Accounts payable Common stock Retained earnings

1 (0%) 1 (0%) 1 (0%) $ 1 (0%) 1 (0%) $

Total liabilities and stockholders' equity

12,200 8,100 3,200 $ 34,000 -16,000 $

Total liabilities and stockholders' equity

$ 28,000 11,500 39,500 4,800 $ 34,700

Question 10: Score 0/4 Your response Correct response

Question 11: Score 0/4