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ACCT 1B Study Guide - Final Guide: Deutsche Luft Hansa, Capital Expenditure

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amethysthyena724
16 Jun 2020
School
Irvine Valley College
Department
Accounting
Course
ACCT 1B
Professor
Seilo

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Document Summary

Manufacturing oh budget: shows expected oh costs for budget period. Based on experience, estimate variable oh for this company, estimate a variable rate and calculate an hourly rate for fixed oh. Selling and administrative expense budget projection of anticipated selling and administrative expenses. Get variable rate per unit of sales x sales and add fixed expenses. Variable expenses (per unit cost x sales units) (freight out and salescom) + fixed expenses (office salaries, sales salaries, depreciation in office) Budgeted i/s: expected profitability of operations for the budget period. Once established, provides basis for evaluating company"s performance. Budgeted i/s uses data from all the other budgets. To calculate cgs have to get total unit cost for the product. Take dm + dl + moh unit cost from other budgets. Cgs = units sold x unit cost: prepare a cash budget and a budgeted balance sheet. Preparing the financial budgets: capital expenditure, cash + b/s.

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Related Questions

Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available. 1. Sales: 20,200 units quarter 1; 22,400 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,230, depreciation $4,330, insurance $1,830, utilities $840, and repairs expense $690. 4. Unit selling price: $21. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2017. (List variable expenses before fixed expense.)

Flexible Budget for Selling and Administrative Expenses for a Service company

Morningside Technologies Inc. uses flexible budgets that are based on the following data:

Sales commissions 15% of sales
Advertising expense 12% of sales
Miscellaneous administrative expense $8,000 per month plus 10% of sales
Office salaries expense $32,000 per month
Customer support expenses $14,000 per month plus 18% of sales
Research and development expense $35,000 per month

Prepare a flexible selling and administrative expenses budget for April for sales volumes of $400,000, $500,000, and $600,000.

MORNINGSIDE TECHNOLOGIES INC.
Flexible Selling and Administrative Expenses Budget
For the Month Ending April 30
Total sales $400,000 $500,000 $600,000
Variable cost:
Sales commissions $ $ $
Advertising expense
Miscellaneous administrative expense
Customer support expense
Total variable cost $ $ $
Fixed cost:
Miscellaneous administrative expense $ $ $
Office salaries expense
Customer support expense
Research and development expense
Total fixed cost $ $ $
Total selling and administrative expenses $ $ $

Flexible Budget for Selling and Administrative Expenses Agent Blaze uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 18% of sales Miscellaneous selling expense $1,800 plus 3% of sales Office salaries expense $12,000 per month Office supplies expense 4% of sales Miscellaneous administrative expense $1,300 per month plus 2% of sales Hide Prepare a flexible selling and administrative expenses budget for January 2014, for sales volumes of $80,000, $100,000, and $120,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Agent Blaze Flexible Selling and Administrative Expenses Budget For the Month Ending January 31, 2014 Total sales $80,000 $100,000 $120,000 Variable cost: Sales commissions $ $ $ Advertising expense Miscellaneous selling expense Office supplies expense Miscellaneous administrative expense Total variable cost $ $ $ Fixed cost: Miscellaneous selling expense $ $ $ Office salaries expense Miscellaneous administrative expense Total fixed cost $ $ $ Total selling and administrative expenses $ $ $