I am trying to compute study guide. I was wondering if you could just show me the formulas to compute these items listed below.

Chapter 8

I need to be able to compute pieces of the budget. Can you explain the formula and process for the following:

For example (for a given period):

Cash Collections on Sales

Required production

Cost of materials to be purchased

Cash disbursements for materials

Direct labor cost

Total manufacturing overhead

Cash disbursements for overhead

Predetermined overhead rate

Unit product cost

Dollar value of ending inventory

Dollar value of Cost of Goods Sold

Total Selling and Administrative expenses

Cash disbursements for selling and administrative expenses

Excess (deficiency) of cash available over disbursements

Necessary cash financing

I also need to be familiar with:

The information contained in each component of the Master Budget

The order in which budgets are prepared

Which items are reported on:

oThe cash budget

oThe budgeted income statement

oThe budgeted balance sheet

Chapter 9

Can you explain the difference between a static (planning) budget and a flexible budget?

Can you explain elements of static (planning) budgets and flexible budgets?

Can you explain revenue and spending variances for service companies?

Given the relevant information, can you explain the following variances for manufacturing companies and determine whether each is favorable or unfavorable:

Materials

oSpending

oPrice

oQuantity

Labor

oSpending

oRate

oEfficiency

Variable

oSpending

oRate

oEfficiency

When given a variance and/or set of variances be able to identify potential causes for the variance(s).