Question 1: Score 0/4
Your response
Correct response 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: Budgeted sales (all on account)
April $ 300,000
May $ 500,000
June $ 200,000
Total $ 1,000,000
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: Budgeted sales (all on account)
April $ 300,000
May $ 500,000
June $ 200,000
Total $ 1,000,000
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.
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 $260,000.
Requirement Requirement 1: Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.(Leave quarter.(Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Requirement 1: Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.(Leave quarter.(Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
April $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%)
February sales March sales April sales May sales June sales Total cash collections
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%)
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: 0.0×1/24 grade: 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 = 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 May June Total 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
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
Correct response
Requirement Requirement 2: Assume that the company company will prepare a budgeted budgeted balance sheet as of June 30. 30. Compute the accounts receivable receivable as of that date. (Omit the "$" sign in your response.)
Requirement Requirement 2: Assume that the company company will prepare a budgeted budgeted balance sheet as of June 30. 30. Compute the accounts receivable vable as of that date. (Omit the "$" sign in your response.)
Accounts receivable
$ 1 (0%)
Accounts receivable
$ 210,000
Total grade: 0.0×1/1 grade: 0.0×1/1 = 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:
April May June July
Sales in Units 50,000 75,000 90,000 80,000
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
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:
April May June July
Sales in Units 50,000 75,000 90,000 80,000
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: 0.0×1/4 grade: 0.0×1/4 + 0.0×1/4 + 0.0×1/4 + 0.0×1/4 = 0% + 0% + 0% + 0% Feedback: Budgeted sales in units Add desired ending inventory* nventory* 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
Correct response 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 Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
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 Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
Budgeted production, in bottles
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 a mount of purchases in roubles for each quarter and for the year in total.(Input total.(Input all amounts as positive values.)
Production needs— needs—grams Less (0%) : desired ending inventory— inventory—grams Total needs— needs—grams Add (0%) : beginning inventory— inventory—grams
First 1 1 1 1
(0%) (0%) (0%) (0%)
Second 1 1 1 1
(0%) (0%) (0%) (0%)
Year 2 Third 1 1 1 1
First 60,000
Year 2 Second Third 90,000 150,000
Fourth 100,000
Year 3 First 70,000
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 total.(Input all amounts as positive values.)
Production needs— needs—grams
First 180,000
Second 270,000
Year 2 Third 450,0
Raw materials to be purchased— purchased—grams Cost of raw materials to be purchased
1 (0%) 1 (0%)
1 (0%) 1 (0%)
1 (0%)Add : 1 (0%)inventory— 1 (0%) inventory—grams Add : desired ending 1 (0%)Total needs— 1 (0%) 1 (0%) needs—grams Less : Less : beginning inventory— inventory—grams Raw materials to be purchased— purchased—grams
54,000 234,000 36,000 198,000
90,000 360,000 54,000 306,000
60,000 510,000 90,000 420,000
42,000 342,000 60,000 282,000
Cost of raw materials to be purchased
29,700
45,900
63,000
42,300
Total grade: 0.0×1/32 grade: 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 = 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: Year 2 Second
First Required production in bottles Number of grams per bottle Total production needs— needs—grams
60,000
90,000
× 3
× 3
180,000
270,000
Third
Fourth
150,000
100,000
× 3 450,000
Year 3 First 70,00 0
× 3 300,000
× 3 210,00 0
Question 4: Score 0/4
Your response
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
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.
Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour.
Requirement 1: Compute the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.(Omit produced.(Omit the "$" sign in your response.)
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 produced.(Omit the "$" sign in your response.)
1st Quarter 2nd Quarter 3rd Quarter
Total direct labor cost $ 1 (0%) $ 1 (0%) $ 1 (0%)
1st Quarter 2nd Quarter
Total direct labor cost $ 33,600 $ 27,300
4th Quarter Year
$ 1 (0%) $ 1 (0%)
3rd Quarter 4th Quarter Year
$ 29,400 $ 31,500 $ 121,800
Total grade: 0.0×1/5 grade: 0.0×1/5 + 0.0×1/5 + 0.0×1/5 + 0.0×1/5 + 0.0×1/5 = 0% + 0% + 0% + 0% + 0% Feedback: Assuming that the direct direct labor workforce is adjusted adjusted each quarter, the direct labor budget budget is: 1st Quarter 8,000 × 0.35 2,800 × $12.00 $ 33,600
Units to be produced Direct labor time per unit (hours) Total direct labor hours needed Direct labor cost per hour Total direct labor cost
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
Your response
Correct response 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 (Omit the "$" sign in your response.)
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Total direct labor cost $ 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%)
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Total grade: 0.0×1/5 grade: 0.0×1/5 + 0.0×1/5 + 0.0×1/5 + 0.0×1/5 + 0.0×1/5 = 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:
Units to be produced Direct labor time per unit (hours) Total direct labor hours needed
Requirement 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 (Omit the "$" sign in your response.)
1st Quarter 8,000 × 0.35 2,800
2nd Quarter 6,500 × 0.35 2,275 2,275
3rd Quarter 7,000 × 0.35 2,450
4th Quarter 7,500 × 0.35 2,625 2,625
Year
Total direct labor cost $ 34,800 $ 31,200 $ 31,200 $ 31,650 $ 128,850
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
Question 5: Score 0/4
Your response
Correct response 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:
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
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.
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.)
Requirement Requirement 1: Compute the company's manufacturing overhead budget for the upcoming fiscal year. (Omit the "$" sign in your response.)
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Cash disbursements for manufacturing overhead $ 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%) $ 1 (0%)
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Total grade: 0.0×1/5 grade: 0.0×1/5 + 0.0×1/5 + 0.0×1/5 + 0.0×1/5 + 0.0×1/5 = 0% + 0% + 0% + 0% + 0% Feedback:
Budgeted direct labor-hours Variable overhead rate Variable manufacturing overhead
Yuvwell Corporation Manufacturing Overhead Budget 1st 2nd Quarter Quarter 8,000 8,200 $ × 3.25 $ × 3.25 $ 26,000 $ 26,650
3rd Quarter 8,500 $ × 3.25 $ 27,625
4th Quarter 7,800 $ × 3.25 $ 25,350
Year 32,500 $ × 3.25 $ 105,625
Cash disbursements for manufacturing overhead $ 58,000 $ 58,650 $ 59,625 $ 57,350 $ 233,625
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
Correct response
Requirement 2: Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Requirement 2: Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Manufacturing overhead rate for the year
$ 1 (0%)
Manufacturing overhead rate for the year
$
9.16
Total grade: 0.0×1/1 grade: 0.0×1/1 = 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
Question 6: Score 0/4
Your response
Correct response
Exercise 9-6 Selling and Administrative Expense Budget [LO7] The budgeted unit sales of Weller Company for t he 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
Exercise 9-6 Selling and Administrative Expense Budget [LO7] The budgeted unit sales of Weller Company for t he 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 variable selling and administrative strative expense per unit is $2.50. Fixed selling ling and administrative ve expenses inclu The company's variable variable selling and administrative administrative expense per unit is $2.50. Fixed Fixed selling and administrative strative expenses inclu advertising expenses expenses of $8,000 per quarter, executive salaries salaries of $35,000 per quarter, and depreciation on of $20,000 per quarte advertising expenses expenses of $8,000 per quarter, executive salaries salaries of $35,000 per per quarter, and depreciation ation of $20,000 per quart quart In addition, the company will make make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finall In addition, the company will make make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finall property taxes of $8,000 will be paid in the second quarter. property taxes of $8,000 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget budget for the upcoming fiscal year.(Inp year. (Input ut all amou amounts nts as posi positi ti values. Leave no cells blank - be certain to enter " 0" wherever required. Omit the "$" sign in your response.) Weller Company Selling and Administrative Expense Budget
Required: Prepare the company's selling and administrative expense budget f or the upcoming fiscal year.(Inp year.(Input ut all amou amounts nts as posi positi ti 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
1st
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
2nd
Quarter 1 (0%)
$
1 1 1 1 1
$
Quarter 1 (0%)
(0%) (0%) (0%) (0%) (0%)
1 1 1 1 1
$
(0%) (0%) (0%) (0%) (0%)
4th
Quarter 1 (0%) 1 1 1 1 1
1 (0%)
1 (0%)
1 (0%) 1 (0%)
1 (0%) 1 (0%)
1 (0%) 1 (0%)
$
1 (0%)
$
$
(0%) (0%) (0%) (0%) (0%)
1 (0%)
1 (0%)
$
3rd
1 (0%)
$
1st
Quarter Year 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%) Total selling and administrative 1 (0%) expenses 1 (0%) Less depreciation 1 (0%) Cash disbursements for selling and 1 (0%) $ 1 (0%) administrative expenses
$
2nd
Quarter 37,500
$
Quarter 40,000
8,000 35,000 5,000 0 20,000
$
3rd
$
8,000 35,000 0 8,000 20,000
Quarter 35,000
4th
$
Quarter 32,500
8,000 35,000 5,000 0 20,000
8,000 35,000 0 0 20,000
$
1
68,000
71,000
68,000
63,000
2
105,500 20,000
111,000 20,000
103,000 20,000
95,500 20,000
4
85,500
$
91,000
$
83,000
$
75,500
$
Total grade: 0.0×1/50 grade: 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 = 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: Budgeted unit sales Variable selling and administrative expense per unit Variable expense
1st Quarter 15,000
2nd Quarter 16,000
3rd Quarter 14,000
4th Quarter 13,000
Year 58,000
$ × 2.50
$
× 2.50
$ × 2.50
$ × 2.50
$
$ 37,500
$ 40,000
$ 35,000
$ 32,500
$ 145,000
× 2.50
Question 7: Score 0/4 Your response
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: st
Total cash receipts Total cash disbursements
1 Quarter $ 180,000 $ 260,000
nd
2 Quarter $ 330,000 $ 230,000
rd
3 Quarter $ 210,000 $ 220,000
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:
th
4 Quarter $ 230,000 $ 240,000
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
Total cash receipts Total cash disbursements
1st Quarter $ 180,000 $ 260,000
Year 1
2nd Quarter $ 330,000 $ 230,000
3rd Quarter $ 210,000 $ 220,000
4th Quarter $ 230,000 $ 240,000
The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash
3
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.
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.)
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
Garden Depot Cash Budget s 1 Quarter $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
$
1 1 1 1 1
(0%) (0%) (0%) (0%) (0%)
nd
2 Quarter $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
$
1 1 1 1 1
(0%) (0%) (0%) (0%) (0%)
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.)
rd
3 Quarter $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
$
1 1 1 1 1
(0%) (0%) (0%) (0%) (0%)
$
$
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
Garden Depot Cash Budget 1st Quarter $ 20,000 180,000 200,000 260,000 -60,000
2nd Quarter $ 10,000 330,000 340,000 230,000 110,000
3rd Quarter $ 35,800 210,000 245,800 220,000 25,800
70,000 0 0 70,000 10,000
0 -70,000 -4,200 -74,200 35,800
0 0 0 0 25,800
$
$
$
4th $
$
Total grade: 0.0×1/50 grade: 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 + 0.0×1/50 = 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
Required: Use the absorption costing income statement method, prepare the company's budgeted income statement.(Input 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%) 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%)
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 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: 0.0×1/14 grade: 0.0×1/14 + 0.0×1/14 + 0.0×1/14 + 0.0×1/14 + 1.0×1/14 + 0.0×1/14 + 0.0×1/14 + 0.0×1/14 + 0.0×1/14 + 0.0×1/14 + 0.0×1/14 + 0.0×1/14 + 0.0×1/14 + 0.0×1/14 = 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 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:
Cash Accounts receivable receivable Supplies inventory Equipment Accumulated depreciation depreciation Accounts payable
Ending Balances ? $ 8,100 $ 3,200 $ 34,000 $ 16,000 $ 1,800
Correct response 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:
Cash Accounts receivable Supplies inventory Equipment Accumulated depreciation depreciation
Ending Balances ? $ 8,100 $ 3,200 $ 34,000 $ 16,000
Common stock Retained earnings
$ 5,000 ?
Accounts payable Common stock Retained earnings
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.)
Assets Current assets: Cash (5%) 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%) $
Mecca Copy Budgeted Balance Sheet Liabilities and Stockholders' Stockholders' Equity ty Current liabilities: Accounts payable (5%) payable (5%) Stockholders' equity: Supplies inventory (0%) 1 (0%) Equipment (0%) Total stockholders' equity
1 (0%) 1 (0%) $
1 (0%) 1 (0%)
Total liabilities and stockholders' equity
$ 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.)
Assets Current assets: Cash Accountsreceivable Supplies inventory Total current assets Plant and equipment: Equipment Accumulated Accumulated depreciation Plant and equipment, net Total assets
$
12,200 8,100 3,200 $
Mecca Copy Budgeted Balance Sheet Liabilities and Stockholders' Stockholders' Equity Current liabilities: Accounts payable Stockholders' equity: Common stock 23,500 Retained earnings Total stockholders' equity
34,000 -16,000 $
18,000 41,500
Total liabilities and stockholders' equity
Total grade: 1.0×1/21 grade: 1.0×1/21 + 0.0×1/21 + 1.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 + 0.0×1/21 = 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 company (000 omitted). The company requires res a minimum cash balance balance of at least $5,000 to start each quarter. Fill in t he missing amounts in the table.(Enter (Enter your answers in thousands of dollars. Show deficiencies, repayments, and total financing preceded by a minus sign when appropriate. Enter all other amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
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 minimum cash balance of at least $5,000 to start each quarter. Fill in the missing amounts in the t able.(Enter able.(Enter your answers in thousands of dollars. Show deficiencies, repayments, and total financing preceded by a minus sign when appropriate. Enter all other amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) 1 Cash balance, beginning Add collections collections from customers Total cash available Less disbursements: Purchases of inventory Operating expenses Equipment purchases Dividends Total disbursements disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest)* Total financing Cash balance, ending
$
2
6 1 (0%) 71
$ 1 1 1
35 1 (0%) 8 2 1 (0%) -2
1
(0%) (0%) (0%) (0%)
1 1 1
1 1 1 $ 1
Quarter Quarter 3 4 Year Cash balance, beginning (0%) Add $ collections 1 (0%) from $ 1 customers (0%) $ 1 (0%) (0%) (0%) 96 1 323 Total cash available (0%) 1 (0%) 1 (0%) 1 (0%) Less disbursements: Purchases 45 1 (0%) of inventory 35 1 (0%) 30 Operating 30 expenses 1 (0%) 113 8 10 purchases 1 (0%) 36 Equipment 2 2 2 1 (0%) Dividends 85 1 (0%) 1 (0%) 1 (0%) Total disbursements (0%) 1 (0%) 1 (0%) 11 Excess (deficiency) of cash available over disbursements 15 Financing: 1 (0%) 1 (0%) 1 (0%) Borrowings (0%) 1 (0%) -17 1 (0%) (0%) 1 (0%) (including 1 (0%) 1 (0%) Repayments interest)* (0%) Total 1 (0%) 1 (0%) $ financing $ $ 1 (0%)
1 $
Cash balance, ending
*Interest will total $1,000 for the year.
$
2 6 65 71
$
3 5 70 75
$
35 28 8 2 73 -2
45 30 8 2 85 -10
48 30 10 2 90 11
7 0 7 5
15 0 15 5
0 -6 -6 5
$
*Interest will total $1,000 for the year.
Total grade: 0.0×1/42 grade: 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 + 0.0×1/42 = 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%
Question 11: Score 0/4
Your response
Correct response 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: st
Budgeted unit sales
1 Quarter 8,000
nd
2 Quarter 7,000
rd
3 Quarter 6,000
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:
th
4 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
st
Budgeted unit sales
1 Quarter 8,000
nd
2 Quarter 7,000
rd
3 Quarter 6,000
5 96 101
th
4 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
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 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.
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 $4.00 per pound. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 3,140 pounds. Management plans to pay for 75% of raw material purchases in the quarter acquired and 25% in the following quarter.
Requirement Requirement 1: Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.)
Requirement 1: Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.)
Gaeber Industries Production Budget nd 1 Quarter 2 Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) s
Budgeted unit sales Add desired ending ending inventory Total units needed Less beginning inventory Required production
rd
3 Quarter Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
4 Quarter Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
Gaeber Industries Production Budget nd 1 Quarter 2 Quarter 8,000 7,000 1,400 1,200 9,400 8,200 1,600 1,400 7,800 6,800 s
Budgeted unit sales Add desired ending inventory nventory Total units needed Less beginning inventory Required production
rd
3 Quarter Quarter 6,000 1,400 7,400 1,200 6,200
4 Quarter Quarter 7,000 1,700 8,700 1,400 7,300
Total grade: 0.0×1/25 grade: 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%
Your response
Correct response response
Requirement 2: (a) Prepare the company's direct materials als budget. (Input all amounts as positive values. Omit the "$" sign in your response.) Gaeber Industries Direct Materials Budget st nd 1 Quarter 2 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%)
Production needs Add desired ending inventory nventory Total needs Less beginning inventory Raw materials to be purchased Cost of raw materials to be purchased
rd
3 Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%)
Requirement 2: (a) Prepare the company's direct materials als budget. (Input all amounts as positive values. Omit the "$" sign in your response.)
th
4 Quarter Year 1 (0%) 1 (0%) Production needs Add desired 1 (0%)ending ending inventory 1 (0%) (0%) Total 1needs 1 (0%) Less beginning 1 (0%) inventory 1 (0%) 1 (0%) to be purchased 1 (0%) Raw materials (0%)materials (0%) $ Cost of 1 raw $ to be 1 purchased
Gaeber Industries Direct Materials Budget st nd 1 Quarter 2 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
rd
3 Quarter 12,400 2,920 15,320 2,480 12,840 $ 51,360
th
4 Quarter 14,600 3,140 17,740 2,920 14,820 $ 59,280
Total grade: 0.0×1/30 grade: 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 = 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:
Required production Raw materials per unit
1st Quarter 7,800 ×2
2nd Quarter 6,800 ×2
3rd Quarter 6,200 ×2
4th Quarter 7,300 ×2
Year 28,100 ×2
Production needs
15,600
13,600
12,400
14,600
56,200
Your response
Correct response response
year.(Leave (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 "$" sign in your response.)
Accounts payable, beginning beginning balance st 1 Quarter purchases nd 2 Quarter purchases rd 3 purchases 4 Quarter Quarter purchases purchases Total cash disbursements for materials
year.(Leave (b) Prepare the schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.(Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Gaeber Industries Schedule of Expected Cash Disbursements for Materials st nd rd 1 Quarter 2 Quarter 3 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%)
th
4 Quarter Year $ Accounts 1 (0%) payable, $ beginning nning 1 (0%) balance st 1 (0%) 1 (0%) 1 Quarter purchases nd 2 Quarter 1 (0%) purchases 1 (0%) rd 3 purchases 1 (0%) 1 (0%) (0%) 4 Quarter Quar 1 ter purchases purchases 1 (0%) $ Total 1cash (0%) disbursements $ 1for(0%) materials
Gaeber Industries Schedule of Expected Cash Disbursements for Materials st nd rd 1 Quarter 2 Quarter 3 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
th
4 Quarter $
$
Total grade: 0.0×1/30 grade: 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 = 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%
Question 12: Score 0/4
Your response response
Correct response
Exercise 9-14 Direct Labor and Manufacturing Overhead Overhead Budgets [LO5, LO6] The production department of Raredon Corporation has submitted the f ollowing forecast of units to be produced by quarter for the upcoming fiscal year:
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
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.
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 $22,000 per quarter.
Requirement Requirement 1: Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.(Omit produced. (Omit the "$" sign in your response.)
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 produced. (Omit the "$" sign in your response.)
Raredon Corporation Direct Labor Budget 1st quarte quarterr 2nd quarte quarterr
3rd quarte quarterr
4th qu
Raredon Corporation Direct Labor Budget 1st quarte quarterr 2nd quarte quarterr
3rd quarte quarterr
4th qu
0 0 0 12,840 44,460 57,300
Total direct labor-hours needed Total direct labor cost
1 (0%) 1 (0%)
$
1 (0%) 1 (0%)
$
1 (0%) 1 (0%)
$
1 (0%) Total direct labor-hours 1 (0%) needed 1 (0%) Total $direct labor 1 (0%) cost
$
8,400 88,200
$
9,800 102,900
$
9,100 95,550
$
7,700 80,850
$
35,000 367,500
$
Total grade: 0.0×1/10 grade: 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback:
Units to be produced Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost
Raredon Corporation Direct Labor Budget 1st quarter 12,000 ×0.70 8,400 $ 10.50 $ 88,200
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
Correct response response
Requirement Requirement 2: Prepare the company's manufacturing overhead budget. (Omit the "$" sign in your response.)
Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Cash disbursements for manufacturing overhead
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%)
Requirement 2: Prepare the company's manufacturing overhead budget. (Omit the "$" sign in your response.)
$
$
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 (0%)manufacturing 1 Total 1 (0%) overhead Cash disbursements for (0%) $ 1 (0%) manufacturing $ 1overhead $
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
$
$
3rd quarter 13,650 80,000 93,650 71,650
$
$
4th quarter 11,550 80,000 91,550 69,550
$
$
Total grade: 0.0×1/20 grade: 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 = 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 3rd 4th Year quarter quarter quarter quarter Budgeted direct labor-hours Variable overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for
8,400 $ ×1.50 $ 12,600 80,600 92,600 22,000 $ 70,600
9,800 $ ×1.50 $ 14,700 80,000 94,700 22,000 $ 72,700
9,100 $ ×1.50 $ 13,650 80,000 93,650 22,000 $ 71,650
7,700 $ ×1.50 $ 11,550 80,000 91,550 22,000 $ 69,550
35,000 $ ×1.50 $ 52,500 320,000 372,500 88,000 $ 284,500
Year 52,5 320,0 372,5 284,5
manufacturing overhead
Question 13: Score 0/4
Your response
Correct response response
Exercise 9-12 Sales and Production Budgets [LO2, LO3] 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 The marketing department of Jessi Corporation has submitted the f ollowing sales forecast for the upcoming fiscal year (all sales are on account): are on account): s
Budgeted unit sales
1 Quarter 11,000
nd
rd
2 Quarter 12,000
3 Quarter Quarter 14,000
s
4 Quarter Quarter 13,000
Budgeted unit sales
1 Quarter 11,000
nd
2 Quarter 12,000
rd
3 Quarter Quarter 14,000
4 Quarter Quarter 13,000
The selling price of the company's product is $18.00 per unit. Management expects expects to collect 65% of sales in the quarter i 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.
The selling price of the company's product is $18.00 per unit. Management expects expects to collect 65% of sales in the quarter i 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 $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units.
Requirement Requirement 1: (a) Calculate the company's total sales. (Omit the "$" sign in your response.)
Requirement 1: (a) Calculate the company's total sales. (Omit the "$" sign in your response.)
s
Total sales
1 Quarter $ 1 (0%)
nd
2 Quarter $ 1 (0%)
rd
3 Quarter Quarter $ 1 (0%)
$
4 Quarter Quarter 1 (0%)
s
Total sales
1 Quarter $ 198,000
Total grade: 0.0×1/5 grade: 0.0×1/5 + 0.0×1/5 + 0.0×1/5 + 0.0×1/5 + 0.0×1/5 = 0% + 0% + 0% + 0% + 0% Feedback:
Budgeted unit sales Selling price per unit Total sales
Jessi Corporation Sales Budget s nd 1 2 Quarter Quarter 11,000 12,000 × $18.00 × $18.00 $ 198,000 $ 216,000
rd
3 Quarter 14,000 × $18.00 $ 252,000
Your response
4 Quarter 13,000 × $18.00 $ 234,000
Year 50,000 × $18.00 $ 900,000
Correct response
nd
2 Quarter $ 216,000
rd
3 Quarter Quarter $ 252,000
$
4 Quarter Quarter 234,000
(b) Prepare (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.)
Accounts receivable, e, beginning balance balance 1st Quarter sales nd 2 Quarter sales rd 3 Quarter sales th 4 Quarter sales Total cash collections
Jessi Corporation Schedule of Expected Cash Collections st nd 1 Quarter 2 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%)
rd
(b) Prepare (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.)
th
3 Quarter $ 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) $ 1 (0%)
4 Quarter Year $ 1 (0%) Accounts $ 1 (0%) receivable, receivable, beginning balance 1 (0%) 1st Quarter 1 (0%) sales nd 1 (0%) 2 Quarter 1 (0%) sales 1 (0%) 3rd Quarter 1 (0%) sales 1 (0%) 4th Quarter 1 (0%) sales $ 1 (0%) Total $ 1cash (0%) collections
Jessi Corporation Schedule of Expected Cash Collections st nd 1 Quarter 2 Quarter $ 70,200 $ 0 128,700 59,400 0 140,400 0 0 0 0 $ 198,900 $ 199,800
rd
th
3 Quarter $
$
0 0 64,800 163,800 0 228,600
4 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: 0.0×1/30 grade: 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 + 0.0×1/30 = 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
Correct response
Requirement Requirement 2: Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.)
Budgeted unit sales Add desired ending inventory nventory Total units needed Less beginning inventory Required production
Jessi Corporation Production Budget st nd 1 Quarter 2 Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
rd
3 Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
Requirement 2: Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.)
th
4 Quarter 1 (0%) 1 (0%) 1 (0%) 1 (0%) 1 (0%)
Year Budgeted 1 (0%)unit sales (0%) ending Add1 desired ending inventory Total 1 units (0%)needed (0%) Less 1 beginning inventory Required 1 (0%) production
Jessi Corporation Production Budget st nd 1 Quarter 2 Quarter 11,000 12,000 1,800 2,100 12,800 14,100 1,650 1,800 11,150 12,300
rd
3 Quarter 14,000 1,950 15,950 2,100 13,850
th
4 Quarter 13,000 1,850 14,850 1,950 12,900
Year 50,000 1,850 51,850 1,650 50,200
Total grade: 0.0×1/25 grade: 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 + 0.0×1/25 = 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 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.)
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 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
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 Miscellaneous ($630 + $1.80q) Total expense Net operating income
$ 1 (0%) 1 1 1 1 1 1 $ 1
(0%) (0%) (0%) (0%) (0%) (0%) (0%)
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: 0.0×1/8 grade: 0.0×1/8 + 0.0×1/8 + 0.0×1/8 + 0.0×1/8 + 0.0×1/8 + 0.0×1/8 + 0.0×1/8 + 0.0×1/8 = 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 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 Café 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 Café 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 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
Exercise 10-2 Prepare a Report Showing Activity Variances [LO2] Flight Café 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 Café 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 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
In July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café 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 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
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.)
Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance
Flight Café 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%) None (6%) None (6%)
Flight Café 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 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.)
Revenue
Flight Café Activity Variances For the Month Ended July 31 Activity Variances Variances $ 900 U
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: 0.0×1/18 grade: 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 1.0×1/18 = 0% + 6% + 0% + 6% + 0% + 0% + 0% + 0% + 0% + 6% + 0% + 6% + 0% + 6% + 0% + 0% + 0% + 6% Feedback: Flight Café Activity Variances Variances For the Month Ended July 31 Planning Budget 18,000 $ 81,000
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 Miscellaneous ($680 + $0.10q) Total expense Net operating income
43,200 10,600 3,300 4,300 2,300 2,480 66,180 $ 14,820
Flexible Budget 17,800 $ 80,100 42,720 42,720 10,540 3,290 4,300 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
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 budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) Revenue ($4.00q) Expenses:
8,000 $ 32,000
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
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 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 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%)
$
4,000 3,200 5,300 6,400 830 850 20,580 $ 11,420
The actual results for August appear below:
Actual pounds 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
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
1 1 1 1 1 1 1 1
(0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%)
F (0%) U (0%) None (0%) F (0%) None (0%) U (6%) U (6%) F (6%)
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 August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" "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
Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other
200 100 340 550 20 130
U F U U F U
Total expense Net operating income
$
1,100 U 2,100 F
Total grade: 0.0×1/18 grade: 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 1.0×1/18 = 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
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
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
Question 17: Score 0.5/4 Your response
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
Flexible Budget 48 $ 15,360
Actual Budget 48 $ 13,650
8,100 1,150 2,550 350 290 12,440
7,936 1,104 2,474 336 286 12,136
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) $38.00q) Aircraft depreciation ($7.00q) ($7.00q) Office expenses ($190 + $2.00q) Total expense
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
Flexible Budget 48 $ 15,360
Actual Budget 48 $ 13,650
8,100 1,150 2,550 350
7,936 1,104 2,474 336
8,430 1,260 2,350 336
Flights (q) Revenue ($320.00q) Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) $38.00q) Aircraft depreciation ($7.00q) ($7.00q)
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.
Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income
$
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%)
$
$
(0%) None (0%) (0%) U (3%) (0%) U (0%) (0%) U (0%) (0%) None (0%) (0%) F (0%) (0%) F (0%)
286 12,136 $ 3,224
460 12,836 $ 814
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.)
Revenue and Spending Spending Variances 1 (0%) None (0%) 1 1 1 1 1 1 1
290 12,440 $ 3,560
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%)
Office expenses ($190 + $2.00q) Total expense Net operating income
Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income
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 and Spending Spending Variances 1,710 U 494 156 124 0 174 700 2,410
U U F None U U U
Total grade: 0.0×1/32 grade: 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 1.0×1/32 + 0.0×1/32 + 1.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 1.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 0.0×1/32 + 1.0×1/32 + 0.0×1/32 + 0.0×1/32 = 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
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) ($7.00q)
Planning Budget 50 $ 16,000
8,100 1,150 2,550 350
Activity Variances $ 640 U
164 46 76 14
F F F F
Flexible Budget 48 $ 15,360
7,936 1,104 2,474 336
Revenue and Spending Variances $ 1,710 U
494 156 124 0
U U F None
Actual Results 48 $ 13,650
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 Management has identified two cost drivers— drivers—the number of cruises and the number of passengers—that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises t hat it may supplement with special sailings if t here 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
Vessel operating costs Advertising Administrative costs costs Insurance
Cost per Cruise $ 480.00
Cost per Passenger $2.00
$ 24.00
$1.00
Exercise 10-5 Prepare a Flexible Budget with More Than One Cost Driver [LO5] Alyeski Tours operates day tours of coastal glaciers aciers in Alaska on its tour boat the Blue Glacier. Glacier. Management has identified identified two cost drivers— drivers—the number of cruises and the number of passengers— passengers—that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 80 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below:
Vessel operating costs Advertising Administrative costs costs Insurance
Fixed Cost Per Month $ 5,200 $ 1,700 $ 4,300 $ 2,900
Cost per Cruise $ 480.00
Cost per Passenger $ 2.00
$ 24.00
$ 1.00
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.
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.)
Required: Prepare the company's planning budget for July.(Input 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 costs Insurance Total expense Net operating income
$ 1 (0%) 1 1 1 1 1 $ 1
(0%) (0%) (0%) (0%) (0%) (0%)
Total grade: 0.0×1/7 grade: 0.0×1/7 + 0.0×1/7 + 0.0×1/7 + 0.0×1/7 + 0.0×1/7 + 0.0×1/7 + 0.0×1/7 = 0% + 0% + 0% + 0% + 0% + 0% + 0% Feedback:
Alyeski Tours Planning Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs costs Insurance Total expense Net operating income
$ 35,000 19,520 1,700 6,276 2,900 30,396 $ 4,604
Revenue ($25.00 × 1,400) = $35,000 Vessel operating costs ($5,200 + ($480.00 × 24) + ($2.00 × 1,400)) = $19,520 Administrative costs costs ($4,300 + ($24.00 × 24) + ($1.00 × 1,400)) 1,400)) = $6,276
Question 19: Score 0/4 Your 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 f ollowing table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 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
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 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 average of $4.90 per car washed.
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 average of $4.90 per car washed. washed.
Required: Prepare the company's planning budget for August. (Input all amounts as positive values. Omit the "$" sign in your response.)
Required: Prepare the company's planning budget for August.(Input 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 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%)
Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 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: 0.0×1/10 grade: 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 = 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 expenses ($4,000 + ($0.10 × 9,000)) 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 f ollowing table provides data concerning the company's costs: Fixed Cost Per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 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
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 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 actually washed 8,800 cars in August and to collect an average 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 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 average of $4.90 per car washed. washed. Required: Prepare the company's flexible budget for August. (Input all amounts as positive values. Omit the "$" 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 expenses Total expense Net operating income
4,880 37,840 $ 5,280
Total grade: 0.0×1/10 grade: 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 = 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 expenses ($4,000 + ($0.10 × 8,800)) 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 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 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
8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000
Correct response Exercise 10-10 Prepare a Report Showing Activity Variances 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 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 average of $4.90 per car washed. 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
Administrative expenses 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 Activity Variances $ 1 (0%) U (5%)
Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses expenses Total expense Net operating income
$
1 1 1 1 1 1 1 1 1
(0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%)
Maintenance Wages and salaries Depreciation Rent Administrative expenses 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 Variances 980 U $
None (0%) None (0%) U (0%) U (0%) F (0%) U (0%) U (0%) U (0%) U (5%)
Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses expenses Total expense Net operating income
160 30 40 60 0 0 20 $
F F F F None None F
310 F 670 U
Total grade: 0.0×1/20 grade: 0.0×1/20 + 1.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 1.0×1/20 = 0% + 5% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 5% Feedback:
Cars washed (q) Revenue ($4.90q) Expenses: Cleaning supplies ($0.80q) Electricity ($1,200 + $0.15q) Maintenance ($0.20q)
Lavage Rapide Activity Variances 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
7,040 2,520 1,760
Activity Variances $ 980 U 160 F 30 F 40 F
Depreciation ($6,000) Rent ($8,000) Administrative expenses expenses ($4,000 + $0.10q) Total expense Net operating income
6,000 8,000
6,000 8,000
4,900 38,150 $ 5,950
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 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 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 expenses Total expense Net operating income
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.)
Correct response Exercise 10-11 Prepare a Report Showing Revenue and Spending Variances 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 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 average of $4.90 per car washed. 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 expenses Total expense Net operating income
8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140
Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue and Spending Variances $ 1 (0%) U (5%)
Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses expenses Total expense Net operating income
$
1 1 1 1 1 1 1 1 1
(0%) (0%) (0%) (0%) (0%) (0%) (0%) (0%) (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
F (0%) None (0%) U (5%) None (0%) F (0%) None (5%) None (5%) None (0%) U (5%) F (0%)
Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses expenses Total expense Net operating income
520 150 500 860 0 0 70 $
U U U U None None U
2,100 U 2,140 U
Total grade: 0.0×1/20 grade: 0.0×1/20 + 1.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 1.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 1.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 1.0×1/20 + 0.0×1/20 + 0.0×1/20 = 0% + 5% + 0% + 0% + 0% + 0% + 0% + 5% + 0% + 0% + 0% + 0% + 0% + 5% + 0% + 0% + 0% + 5% + 0% + 0% Feedback:
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 expenses ($4,000 + $0.10q) Total expense Net operating income
Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Flexible Actual Budget Results 8,800 8,800 $ 43,120 $ 43,080
Revenue and Spending Variances $
40 U
7,040 2,520 1,760
7,560 2,670 2,260
520 U 150 U 500 U
7,640 6,000 8,000
8,500 6,000 8,000
860 U 0 None 0 None
4,880 37,840 $ 5,280
4,950 39,940 $ 3,140
70 U 2,100 U $ 2,140 U
Question 23: Score 1/4 Your response
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 expenses
$ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000
Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30
Fixed Cost Per Month
$ 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 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 washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses expenses Total expense Net operating income
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.)
Revenue Expenses:
Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Activity Variances $ 1 (0%) F (0%)
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:
$
Revenue and Spending Spending Vari 1 (0%) F (0%)
Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 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 average of $4.90 per car washed. 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 expenses Total expense Net operating income
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.)
Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 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%) 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%)
Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses expenses Total expense Net operating income
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 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: 0.0×1/40 grade: 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 0.0×1/40 + 1.0×1/40 + 0.0×1/40 + 0.0×1/40 = 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
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 expenses ($4,000 + $0.10q) Total expense Net operating income
Question 24: Score 0/4
Planning Budget 9,000 $ 44,100
$ 980 U
Flexible Budget 8,800 $ 43,120
7,200 2,550 1,800
160 F 30 F 40 F
7,700 6,000 8,000 4,900 38,150 $ 5,950
Activity Variances
60 F 0 None 0 None 20 F 310 F $ 670 U
Revenue and Spending Variances 40 U
Actual Results 8,800 $ 43,080
7,040 2,520 1,760
520 U 150 U 500 U
7,560 2,670 2,260
7,640 6,000 8,000
860 U 0 None 0 None
8,500 6,000 8,000
4,880 37,840 $ 5,280
$
70 U 2,100 U $ 2,140 U
4,950 39,940 $ 3,140
Your response
Exercise 10-13 Flexible Budget [LO1] Wyckam Manufacturing Inc. has provided t he following information concerning its manufacturing costs: Fixed Cost Per Month Direct materials Direct labor Supplies Utilities Depreciation Insurance
Cost per Machine-Hour $ 4.25
$ 36,800 $ 0.30 $ 0.05
$ 1,400 $ 16,700 $ 12,700
Correct response 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
Cost per Machine-Hour $ 4.25
$ 36,800 $ 1,400 $ 16,700 $ 12,700
$ 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.
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.)
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%)
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 $
21,250 36,800 1,500 1,650 16,700 12,700 90,600
Total grade: 0.0×1/7 grade: 0.0×1/7 + 0.0×1/7 + 0.0×1/7 + 0.0×1/7 + 0.0×1/7 + 0.0×1/7 + 0.0×1/7 = 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, 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:
Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses expenses
Fixed Cost Per Month $ 23,200 $ $ $ $
Cost per Repair-Hour $ 16.30 $ 8.60 $ 0.40 $ 1.70
1,600 6,400 3,480 4,500
$ 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 $44.50 per repair-hour. Required: Prepare a report showing the company's activity variances for May.(Indicate May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.)
Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses expenses
$
Activity Variances 1 (0%) F (6%)
$
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%)
$ $ $ $
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 Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses expenses Total expense Net operating income
Fixed Cost Per Month $ 23,200
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 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
1,670 F
Total grade: 0.0×1/18 grade: 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 1.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 0.0×1/18 + 1.0×1/18 = 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 Variances For the Month Ended May 31 Planning Flexible Budget Budget
Activity Variances
Repair-hours (q) Revenue ($44.50q)
2,800 $ 124,600
2,900 $ 129,050
$ 4,450 F
68,840 24,080
70,470 24,940
1,630 U 860 U
2,720
2,760
40 U
11,160 3,480
11,330 3,480
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 expenses ($4,500 + $0.80q) Total expense Net operating income
$
170 U 0 None
6,740
6,820
80 U
117,020
119,800
2,780 U
9,250
$ 1,670 F
7,580
$
