1.S&A budget including cash disbursements for S&A Outdoor Chef Grill Company budgeted the following costs for anticipated...
Question:
1.S&A budget including cash disbursements for S&A
- Outdoor Chef Grill Company budgeted the following costs for anticipated production in October. The list below includes fixed MOH expenses and Fixed S&A expenses
Advertising Expenses $24,000
Sales monthly salary (not commission) $7,500
Factory Insurance $5,000
Production Supervisor Salary $4,900
Executive officer salaries $25,000
Indirect Labor Salaries for Quality Control $2,800
Factory Depreciation $4,000
Corporate Office Building Depreciation, $3,000
Total estimated VMOH expenses are $41,000 for the month of October. VMOH expenses are allocated to the products based on a single PDOR rate using the allocation base, Direct Material Cost.
FMOH is assigned to the products based on DL hours.
Note: You will have two PDOR’s for this assignment.
Variable S&A expenses are allocated at rate of $3 per grill.
- Other Information:
- Income Tax Rate is 35%
- Minimum Cash Balance $500,000
- Beginning Cash Balance $750,000
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac