Exercise 9-9 (Static) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $ 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 should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's planning budget for August.

Exercise 9-9 (Static) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $ 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 should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's planning budget for August.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 9-10 (Static) Flexible Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplien Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed cost per Month $ 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 should be $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and collected an average of $4.90 per car washed. Required: Prepare the company's flexible budget for August
Exercise 9-8 (Algo) Flexible Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 0.50 $ 1,200 $ 0.06 $ 0.25 $ 4,800 $ 0.40 $ 8,400 $ 2,000 $1,600 $ 0.02 For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.20 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 0 Net operating income $ 0
Exercise 9-7 (Algo) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 0.60 $ 1,200 $ 0.05 $ 0.25 $ 4,700 $ 0.40 $ 8,500 $ 2,100 $ 1,600 $ 0.01 For example, electricity costs are $1,200 per month plus $0.05 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. Required: Prepare the company's planning budget for August Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 $ 0
Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report (LO9-4) Lavage Rapide is a Canadian company that owns and operates a large automatic car wash faclity near Montreal. The following table provides estimates concerning the company's costs: Fixed Cont per Cont per Month Car Wanhed $ 0.40 Cleaning wupplies Electricity $ 1,500 $0.07 Maintenance $ 0.25 $ 0.40 Wages and nalaries Depreciation Rent Administrative expenses $ 4,400 $ 8,300 $ 2,200 $ 1,800 $0.03 For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 8,100 $ 53,300 Actual cars washed Revenue Еxpenses Cleaning supplies Electricity Maintenance 3,700 2,030 2,240 7,960 8,300 2,400 Wages and salaries Depreciation Rent Administrative expenses Total expense 1,940 28,570 $ 24,730…
sions Question 10 --/1 ences View Policies prations Current Attempt in Progress LUS Support Vaughn Manufacturing's budgeted manufacturing costs for 40000 squares of shingles are: S. entral 365 Fixed manufacturing costs $12000 Variable manufacturing costs $16 per square Vaughnproduced 30000 squares of shingles during March. How much are budgeted total manufacturing costs in March? O $652000 O $492000 O $640000 O $480000 search
Problem 13-57 (Algo) Sales Expense Budget (LO 13-4) SPU, Ltd., has just recelved its sales expense report for January, which follows. Item Amount Sales commissions $370, 500 9e,400 Sales staff salaries Telephone and mailing Building lease payment 51, 000 60,000 19,100 8e, 000 33,750 51,190 Utilities Packaging and delivery Depreciation Marketing consultants You have been asked to develop budgeted costs for the coming year. Because this month is typical, you decide to prepare an estimated budget for a typical month in the coming year and you uncover the following additional data: Sales volume is expected to Increase by 14 percent. Sales prices are expected to decrease by 10 percent. Commissions are based on a percentage of sales revenue. • Sales staff salarles will increase 4 percent next year regardless of sales volume. • Bullding rent is based on a five-year lease that expires in three years. • Telephone and malling expenses are scheduled to Increase by 6 percent even with no change In…
126 Chapter 5 Exercise 3 (Materials Purchase Budget) purchased calculator requires three small "chips" that cost P200 each and are from an overseas supplier. Mini Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as shown below. Year 3 Year 2 Third. Fourth First First Second Budgeted production calculators 60,000 90,000 150,000 100,000 80,000 in The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of the quarter must be equal to 20% of the following quarter's production needs. Some 36,000 chips will be on hand to start the first quarter of Year 2. Required: Prepare a material purchases budget for chips, by quarter and in total, for Year 2. At the bottom of your budget, show the peso amount of purchases for each quarter and for the year in total.
6 Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 600 sun shades in May and 350 in June. Each shade sells for $142. Shadee's beginning and ending finished goods inventories for May are 65 and 45 shades, respectively. Ending finished goods inventory for June will be 65 shades. E8-7 (Algo) Preparing Direct Labor and Manufacturing Overhead Budgets [LO 8-3d] Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $14 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. ces 2. Prepare Shadee's manufacturing overhead budget for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Shadee's direct labor budget for May and June. Note: Do not…
Please answer req part 4 and 5 in its entirety, per the images attached Problem 8-29 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,300 Accounts receivable $ 19,200 Inventory $ 38,400 Building and equipment, net $ 124,800 Accounts payable $ 22,800 Common stock $ 150,000 Retained earnings $ 16,900 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 48,000 April $ 64,000 May $ 69,000 June $ 94,000 July $ 45,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold. One-half of a month’s inventory purchases is paid…
Budgeted units of production 7,000 7,500 Budgeted variable overhead costs 15,000 18,750 Budgeted fixed overhead costs ? ? Budgeted amortization including in total overhead 3,000 3,000 Budgeted cash disbursements for total overhead 20,000 23,750 1. a) What is the amount of budgeted fixed overhead? a. $8,000 b. $6,000 c. $9,000 d. $3,000
Case 3 GG Industrial is a new manufacturing company and is in the process of preparing its manufacturing overhead budget for 2023. The budgeted sales for 2023 is RM250,000 where the expected selling price is RM5 per unit. Items Variable cost Total fixed per unit (RM) 1.50 1.20 costs (RM) Indirect materials Supplies Indirect labour 0.60 78,000 45,000 24,000 Plant utilities 0.20 Repair and maintenance Depreciation on plant and equipment Insurance on plant and equipment Plant supervisor 0.70 46,000 25,000 76,000 Required 1. Prepare the manufacturing overhead budget for the company for the upcoming year. 2. Since the company is just established, explain to the management of the company the importance of a budget.
Exercise 9-3 (Algo) Revenue and Spending Varlances [LO9-3] Quilcene Oysterla farms and sells oysters In the Pacific Northwest. The company harvested and sold 7,500 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 (9) 7,500 $ 30,75e Revenue ($4.10g) Expenses: Packing supplies ($0.25q) Oyster bed naintenance ($3,000) Wages and salaries ($2,6G00 + se.309) Shipping ($e.55g) Utilities ($1,270) other ($460 + se.014) Total expernse 1,875 3,000 4,85e 4,125 1,270 535 15,655 $ 15,095 Net operating income The actual results for August were as follows: Quilcene Oysteria Income Statenent For the Month Ended August 31 Actual pournds 7.500 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Uulities $27,400 2, 045 2,860 5,260 3,855 1, 080 1,155 16, 255 other Total expense Net operating incone $ 11,145 Required: Calculate the company's revenue and spending…