The managements of Farginny Enterprise had just realized about the advantages of using flexible budget in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The managements of Farginny Enterprise had just realized about the advantages of using flexible budget in planning and controlling the company performance. Thus the management had decided to prepare a flexible budget by using flexible budgeting approach. The followings are information collected for two levels of operation: Levels of production Direct material Direct labor Manufacturing overhead Electricity Royalty Commission Supervision Depreciation Salaries Rates 70% RM 65,625 52,500 13,125 2,625 7,625 10,375 10,000 20,000 12,000 5,000 80% 300,000 units RM 75,000 60,000 15,000 3,000 8,000 11,500 10,000 20,000 12,000 5,000 Additional information; i) ii) Budgeted selling price = RM 3.00/unit Actual selling price = RM 2.70/unit For the year ended 2010, the actual cost of production is as follow: Levels of production Direct material Direct labor Manufacturing overhead Electricity Royalty Commission Supervision Depreciation Salaries Rates 85% RM 78,000 62,500 15,850 3,200 8,100 12,000 10,000 20,000 13,500 6,000 You are required to prepare; (a) A flexible budget statement for 60% and 85% levels of activity. (b) A performance report for the year ended 2010. The managements of Farginny Enterprise had just realized about the advantages of using flexible budget in planning and controlling the company performance. Thus the management had decided to prepare a flexible budget by using flexible budgeting approach. The followings are information collected for two levels of operation: Levels of production Direct material Direct labor Manufacturing overhead Electricity Royalty Commission Supervision Depreciation Salaries Rates 70% RM 65,625 52,500 13,125 2,625 7,625 10,375 10,000 20,000 12,000 5,000 80% 300,000 units RM 75,000 60,000 15,000 3,000 8,000 11,500 10,000 20,000 12,000 5,000 Additional information; i) ii) Budgeted selling price = RM 3.00/unit Actual selling price = RM 2.70/unit For the year ended 2010, the actual cost of production is as follow: Levels of production Direct material Direct labor Manufacturing overhead Electricity Royalty Commission Supervision Depreciation Salaries Rates 85% RM 78,000 62,500 15,850 3,200 8,100 12,000 10,000 20,000 13,500 6,000 You are required to prepare; (a) A flexible budget statement for 60% and 85% levels of activity. (b) A performance report for the year ended 2010.
Expert Answer:
Answer rating: 100% (QA)
a Flexible Budget Statement For 60 level of activity yaml Copy code Levels of production 60 Budgeted ... View the full answer
Related Book For
Managerial Accounting Creating Value In A Dynamic Business Environment
ISBN: 9781264100699
13th Edition
Authors: Ronald Hilton, David Platt
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
In June of 2014, Bill Madden considered expanding his micro tiles business. He planned to invest $2.0 million in 2016 to produce more and better quality plaster or metal tiles and lithographs. These...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
List three factors that help to determine store image?
-
Rainger Company is considering replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Required Based on this...
-
Twenty-four milligrams of a drug is administered into the body. At the end of each hour, the amount of drug present is half what it was at the end of the previous hour. What amount of the drug is...
-
Consider the following cash flow profile and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically attractive?...
-
McLennon Company has a plant capacity of 100,000 units per year, but its budget for this year indicates that only 60,000 units will be produced and sold. The entire budget for this year is as...
-
Given that f(x) = x2 -6 and g(x)=-7x + 5, find d() () if it exists.
-
You are thinking about buying a call option with a strike price of $50 which expires in 2 years (t=2). The underlying asset is currently valued at $50 and is expected to follow a binomial process as...
-
An association can be applied paying little brain to recuperation. Since it is related with dynamic assaults, central issue will be region as opposed to repugnance. If a infringement is seen and the...
-
The Top Thrill Dragster travels at 120 mph and the steelrollercoaster mean speed is 61.67 mph. How many standard deviationsis the speed of the Top Thrill Dragster from the mean speed? 14.67standard...
-
XYZ Corporation has $200M in debt that yields 8%, its stock trades at $20/share and there are 20M shares outstanding. The book value of equity is $300M. XYZ's beta is 1.3. The risk free rate is 3.0%...
-
(a) Using a geometric series (and no other tricks), find a fraction that has the exact decimal expansion 0.13. Verify your answer on a calculator. (b) Using a geometric series (and no other tricks),...
-
An M&M candy dispenser has 25 red, 25 blue, and 25 greenM&Ms. The dispenser dispenses 20 M&Ms each time. What isthe probability, that on the first use, you will get at most 8 redM&Ms out of the 20...
-
Suppose f (x) = 3x^2 +1 and g (x) =2x-4 Find the value of f (g(1)).
-
Topic 12 - Dining Guide This one is super easy to start and run for someone who loves the art of critiquing cuisine and sharing it with an audience. This business, although online, is regionally...
-
Starr Co. had sales revenue of $540,000 in 2014. Other items recorded during the year were: Cost of goods sold ..................................................... $330,000 Salaries and wages...
-
The following data refer to Huron Corporation for the year 20x2. Required: 1. Prepare Hurons schedule of cost of goods manufactured for 20x2. 2. Prepare the companys schedule of cost of goods sold...
-
Tims Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Three-quarters of the shops sales are...
-
The following data refer to snack maker Taquitos To Go for the year 20x1. Required: 1. Prepare Taquitos To Gos schedule of cost of goods manufactured for 20x1. 2. Prepare the companys schedule of...
-
The truss shown in figure 1.30 has two elements. The members are made of the aluminum hollow square cross section. The outer dimension of the square is \(12 \mathrm{~mm}\), and the inner dimension is...
-
Solve the onedimensional heat conduction problem 6 using the RayleighRitz method. For the heat conduction problem, the total potential can be defined as Use the approximate solution...
-
Consider a system of rigid bodies connected by springs as shown in figure 2.20. The bodies are assumed to move only in the horizontal direction. Further, we consider only the static problem, and...
Study smarter with the SolutionInn App