Mowers Inc. makes mowers for commercial landscapers. Their sales budget is shown below: Sep sales, units 10,000 Oct sales, units 34,000 Nov sales, units 40,000 Management want enough mowers on hand to meet 10% of next month's sales. Each mower requires 8 cutting blades. Management wants enough blades to meet 4% of next month's production needs. What is the material budget for blades for September (in units)? Enter as a whole number, no commas and no dollar signs. Answer:
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- Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?Novo, Inc., wants to develop an activity flexible budget for the activity of moving materials. Novo uses eight forklifts to move materials from receiving to stores. The forklifts are also used to move materials from stores to the production area. The forklifts are obtained through an operating lease that costs 18,000 per year per forklift. Novo employs 25 forklift operators who receive an average salary of 50,000 per year, including benefits. Each move requires the use of a crate. The crates are used to store the parts and are emptied only when used in production. Crates are disposed of after one cycle (two moves), where a cycle is defined as a move from receiving to stores to production. Each crate costs 1.80. Fuel for a forklift costs 3.60 per gallon. A gallon of gas is used every 20 moves. Forklifts can make three moves per hour and are available for 280 days per year, 24 hours per day (the remaining time is downtime for various reasons). Each operator works 40 hours per week and 50 weeks per year. Required: 1. Prepare a flexible budget for the activity of moving materials, using the number of cycles as the activity driver. 2. Calculate the activity capacity for moving materials. Suppose Novo works at 80 percent of activity capacity and incurs the following costs: Prepare the budget for the 80 percent level and then prepare a performance report for the moving materials activity. 3. Calculate and interpret the volume variance for moving materials. 4. Suppose that a redesign of the plant layout reduces the demand for moving materials to one-third of the original capacity. What would be the budget formula for this new activity level? What is the budgeted cost for this new activity level? Has activity performance improved? How does this activity performance evaluation differ from that described in Requirement 2? Explain.
- Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?Everton Furniture Company produces two kinds of chairs: an oak model and a chestnut wood model. The oak model sells for R60 and the chestnut wood model sells for R100. The variable expenses are as follows: Oak Chestnut Variable production costs per unit R30 R35 Variable selling & admin. expenses per unit R6 R5 Expected sales in units next year are: 5 000 oak chairs and 1 000 chestnut chairs. Fixed expenses are budgeted at R135,000 per year. The yearly break-even point in total sales for the expected sales mix is: A. R500 000 B. R270 000 C. R300 000 D. R485 000Easy Farms Inc. makes tillers for small farms. Their sales budget is shown below: Sep sales, units 10,000 Oct sales, units 56,000 Nov sales, units 40,000 Management want enough tillers on hand to meet 10% of next month's sales. Each tiller requires 8 round blades. Management wants enough blades to meet 13% of next month's production needs. Each blade cost $4.50. What is the material budget for blades for September (in dollars)? Enter as a whole number, no commas and no dollar signs. Your Answer: Answer
- Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month 30 20 $ 7,500 1,000 Required: 1. What is the company's margin of safety? 2. What is the company's margin of safety as a percentage of its sales?A company sells bags. Next month's budget is as follows: Selling Price=$50/bag Variable Expenses per unit=$25/bag Total Fixed Expenses for one month=$10,000/month Volume of Bag Sales=1,000bags Based on the company's budgeted sales, what is the company's Margin of Safety in dollars? Show all work explanation computation formula with stepsDavis Corporation manufactures and sells portable radios. The radio sells for $70.00 per unit and its variable costs per unit are $30.00. Fixed costs are $51,000 per month for sales volumes up to 25,000 radios. If more than 25,000 radios are sold, the fixed costs will be $51,000 The flexible budget would reflect what monthly operating income for a sales volume of 39,000 radios? A. $1,560,000 B $51,000 C. $2,730,000 D. $1,509,000
- SafeNow sells its main product, ergonomic mouse pads, for $11 each. Its variable cost is $5.20 per pad. Fixed costs are $205,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $255,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 40,000, 45,000, and 75,000 pads. SafeNow Flexible Budget Budget Amounts Per Unit 75.000 45,000 Units back @ # * 3 $ 40.000 IOI 4 5 6 4- & 7 LO T 9 O 44 ←Subject: Finance A computer company has a monthly advertising budget of $60,000. Your sales department estimates that if x dollars are spent each month in newspaper advertising and and dollars each month in television advertising, the monthly sales will be given in dollars. If the utility is 10% of sales less the cost of advertising; determines how to assign the advertising budget to maximize production. Solve it with Lagrange MultipliersErgoNow sells its main product, ergonomic mouse pads, for $12 each. Its variable cost is $5.40 per pad. Fixed costs are $200,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $260,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 35,000, 45,000, and 75,000 pads. ErgoNow Flexible Budget Budget Amounts Per Unit Units 35,000 45,000 75,000 (1) (2) (3) (4) (5) (1) Contribution Margin Fixed Costs Operating Income Sales Revenue Variable Costs (2) Contribution Margin Fixed Costs Operating Income Sales Revenue Variable Costs (3)…