8.The expenses budgeted for production of 10,000units in a factory are furnished below.ParticularsRs.Materials70Labour25Variable overhead20Fixed overheads (Rs. 1,00,000)10Variable Expenses (direct)Selling expenses (10% fixed)13Distribution expenses (20% fixed)7.Administration expenses (Rs. 50,000)Total155Prepare a budget for production of:(a)8,000 units(b)6, 000 units.Assume that administration expenses are rigid forall levels of production.

Solution :- While production, there are various expenses incurred by a firm. There are two types of…

Answered: 8. The expenses budgeted for production…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1BE: At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and...

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6) Some of the beginning and end of the period information of the production enterprise, which budgets the General Production Expenses on its products according to the Direct Labor Hours, are as follows.Budgeted General Production Expenses 20.000.-₺Actual Activity Volume 3,800 Direct labor hoursActual General Production Expenses 18.000.-₺Overload 1.000.-₺Desired: Calculate the "Budgeted Activity Volume" of the business. A. 4,500 Direct labor hoursB. 4,000 Direct labor hoursC. 2,500 direct labor hoursD. 3,000 Direct labor hoursE. 5,000 Direct labor hours
The expenses budgeted for production of 10,000 units in a factory are furnished below: OMR. per unit 70 Material Labor 25 Variable overheads 20 Fixed overheads (OMR. 1,00,000) Variable expenses (direct) 10 Selling expenses (10% fixed) 13 Distribution expenses (20% fixed 7 Administration expenses (OMR. 50(000) 5 Total 155 Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units. Assume that administration expenses are rigid for all levels of production.
The following extract is taken from the maintenance cost budget: Maintenance hours 8,300 8,520 Maintenance cost £211,600 £216,440 The budget cost allowance for maintenance costs for the latest period, when 8,427 maintenance hours were worked, is $_____
Z Ltd has prepared the Budget for the production of 1,00, 000 units from a costing period as unuer. \table[[Particulars, Amount per unit (7)], [Raw materials,10.08], [Direct Labour,3], [Direct Expenses, 0.40], [Works Overhead (60% fixed), 10], [Administration Overhead (80% fixed), 1.60], [Sales Overhead (50% fixed), 0.80]] Actual production of the year is only 60, 000 units. Prepare the Budget for original and revised levels of output.
(b) Breakthrough Ltd provided the following standard cost card. Its budgeted production and sales for December 2021 were 10,000 units @ TZS 200,000 per unit. Budgeted fixed overheads were Tshs 200 millian. The standard cost card of breakthrough Ltd. TZS Direct material 4 kg of A at Tshs 5,000 per kg 2 kg ol B at Tshs 20,000 per kg Direct labour (5. hours per unit of production at Tshs15,000 per hour) Variable overhead (5 hours at Tshs 5,000 per labour hour) 20,000 40,000 75,000 25.000 Total variable cost 160.000 The company has also provided the actual results for December 2021. (AI the units produced during the period were sold. There is no closing inventory). TZS 000 TZS 000 2,089,500 Sales 10,500 units at Tshs199,000 Direct material A. 40,000kg at Tshs 6,000 per kg B. 23,000kg at Tshs 20,000 per kg Direct Labour 63.000 houcs at Tshs 15,000 per hour Variable overheads 63,000 hours at Tshs 4,000 per hour 240,000 460,000 945,000 252.000 (1,897,000) Actual contribution 192,500 Actual…
Rockport Corporation uses the cost formula Y- $4,800+ $0.40X for the maintenance cost, where X is machine-hours. The August budget is based on 9,000 hours of planned machine time. Maintenance cost expected to be incurred during August is: O $4,800 O $8,400 O $3,600 O $1,200
Jefferson Company expects to incur $572,760 in manufacturing overhead costs during the current year. Other budget information follows: Direct labor hours Machine hours Department A 16,650 8,880 Required: a. Use direct labor hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. b. Use machine hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. c. Assume that Department A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on direct labor hours, how much overhead would be allocated to this product? d. Assume that Department A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on machine hours, how much overhead would be allocated to this product? Req A and B Req C and D Department B Department C 5,550 22, 200 11,100 13,320…
Automatic Irrigation, Inc. is preparing its manufacturing overhead budget for the next year. Relevant data consist of the following Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Control Units to be produced (by quarters): 8,000 7,000 10,000 12,000 37,000 Direct labor time: 1 hour per unit Variable overhead costs per direct labor hour: Indirect Materials $0.80; Indirect Labor $1.10; and Maintenance $0.60. Fixed overhead costs per quarter: Supervisory salaries $19,250; depreciation $3,000; and maintenance $2,250. Required Prepare the manufacturing overhead budget for the next year showing quarterly data and the total amounts for the full year.
Westmore Company has two service departments and two operating departments. Budgeted costs and other data relating to these departments are presented below:Building Operating Department& Grounds Personnel A BDepartmental costs ..... $54,000 $200,000 $650,000 $800,000Square feet occupied ... 1,000 3,000 12,000 15,000Number of employees .... 10 5 45 55Direct laborhours ..... 76,000 92,000The costs of Building & Grounds are allocated first on the basis of square feet of space occupied. Personnel costs are allocated on the basis of numberof employees. The departmental costs for the operating departments are overhead costs. Predetermined overhead rates in the operating departments are computed on the basis of direct laborhours.Assume that the company uses the direct method of allocating service department costs. The predetermined overhead rate that would be used in Department B would be closest to:a. $11.50/DLH.b. $12.00/DLH.c. $10.00/DLH.d. $10.22/DLH.
The following information is from the manufacturing budget and the budgeted financial statements of Schenck Development Partners. Direct materials inventory, January 1 $ 68,000 Direct materials inventory, December 31 30,000 Direct material usage budgeted for the year 190,000 Accounts payable to suppliers of materials, January 1 50,000 Accounts payable to suppliers of materials, December 31 79,000 a. Compute the budgeted amount for purchases of direct materials during the year. b. Compute the budgeted amount for cash payments during the year to suppliers of materials.
At the beginning of the period, the Cutting Department budgeted direct labor of P155,000, direct material of P165,000 and fixed factory overhead of P15,000 for 9,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? * A. P416,000 B. P370,556 C. P368,889 D. P335,000
Nanda Company has two service departments, Maintenance and Personnel. Maintenance Department costs of P160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of P40,000 are allocated based on the number of employees. The costs of operating departments A and B are P80,000 and P120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance A B Department Budgeted costs P160,000 P40,000 P80,000 P120,000 Budgeted ΝΑ 400 480 320 maintenance-hours Number of employees 20 ΝΑ 80 240 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up) Personnel Department

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